January 8, 2010 / 1:56 PM / 8 years ago

CANADA STOCKS-TSX could open lower after weak job reports

3 Min Read

TORONTO, Jan 8 (Reuters) - Toronto's main stock index looked set for a lower open on Friday after a pair of weak employment reports in Canada and the U.S. splashed cold water on investor optimism about a robust economic recovery.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE could follow the trend in the U.S., where stock index futures turned negative after the disappointing U.S. jobs reading. [.N]

A decline in the index would extend losses from Thursday, when the TSX fell for the first time in six days after commodity prices were hit by a rising U.S. dollar and signs that China may tighten its monetary policy. [ID:nN07214349]

Here is some of the news that may affect the market:

Canada Jobs Data

Canada's labor market recovery stalled in December, unexpectedly losing 2,600 jobs after hefty gains in November in another sign the economic comeback will be gradual rather than in leaps and bounds. [ID:nN08233091]

u.s. Non-Farm Payrolls

U.S. employers unexpectedly cut 85,000 jobs in December, government data showed on Friday, cooling optimism on the labor market's recovery and keeping pressure on President Barack Obama. [ID:nN07203048]

Oil Steady

Oil hovered above $82 a barrel on Friday after snapping a 10-day winning streak the previous day as traders eyed U.S. jobs data due later for clues about the pace of demand recovery in the world's largest oil consumer. [O/R]

Jean Coutu Results

Jean Coutu Group (PJCa.TO) returned to a profit as more customers bought over-the-counter remedies in the wake of the H1N1 outbreak, the Canadian drugstore chain said on Friday. [ID:nN08234001]

Southgobi Ipo

Canada-listed coal miner SouthGobi Energy Resources (SGQ.TO) has secured Asia's top sovereign wealth funds, China Investment Corp (CIC) and Temasek, as cornerstone investors in its planned $400 million Hong Kong IPO this month, a source told Reuters on Friday. [ID:nTOE60709O]

Canada's Research Roundup

Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]

* Citigroup raised Canadian fertilizer maker Agrium Inc (AGU.N) to "buy" from "hold," saying farmers and retailers are likely to slowly rebuild inventories.

* UBS raises Goldcorp Inc (G.TO) price target to $53.50 from $53; Rating Buy

* CI Capital raises Aecon Group Inc (ARE.TO) price target to C$19 from C$16.50; Rating Outperform

$1=$1.04 Canadian Reporting by Claire Sibonney; Editing by Jeffrey Hodgson

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