CANADA STOCKS-Toronto index may open higher after U.S. jobs data

Fri Jan 9, 2009 9:23am EST
 
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 TORONTO, Jan 9 (Reuters) - Toronto's main index could open
higher on Friday as investors resume their appetite for riskier
assets after key jobs from the United States showed employers
cut payrolls in December by less than expected.
 The U.S. report arrived 90 minutes after data showed the
Canadian economy cut more jobs than expected in December for
the second straight month in a sign that the economy has likely
slipped into a recession.
 It also cements the view that the Bank of Canada will lower
its key overnight rate again on Jan. 20 following its December
decision to cut rates by 75 basis points to a 50-year low of
1.50 percent.
 Toronto's index could also get caught in a tug-of-war
between the weighty materials and energy sectors as oil prices
turned lower while gold prices were given a boost after the
U.S. jobs data.
 The S&P/TSX composite index .GSPTSE is coming off a
higher close after a late-session burst on Thursday that was
powered by the materials group.
 Here is some of the news that may affect the market:
 CANADA ECONOMY SHEDS MORE JOBS IN DECEMBER
 Canadian employers cut more jobs than expected in December
for the second straight month and the unemployment rate jumped
to its highest since January 2006 in a sign that the economy
has likely slipped into a recession. [ID:nN09253705]
 US DEC PAYROLLS FALL 524,000, JOBLESS RATE 7.2 PCT
 U.S. employers slashed payrolls by 524,000 in December,
driving the unemployment rate to its highest level in almost 16
years, a government report showed on Friday, suggesting that
the year-long recession was deepening. [ID:nN08546114]
 U.S. GOLD RISES FURTHER AS U.S. DOLLAR FALLS ON JOBS DATA
 New York gold futures rose further early Friday as the
dollar fell against the euro and the yen after a government
report showed the U.S. unemployment rate surged to its highest
level in 16 years. [ID:nN09307897]
 NATURAL GAS EDGES LOWER WITH WEEKEND CASH, CRUDE
 U.S. natural gas futures were trading about 3 cents lower
in early electronic trade Friday., pressured by weaker Henry
Hub cash gas on expected lighter weekend industrial loads ands
with sliding crude futures. [ID:nN09282194]
 CANADA'S FLAHERTY SEES 'SUBSTANTIAL' DEFICIT
 Canada will run a "substantial" budget deficit in the next
fiscal year as it enacts stimulus measures to help shelter the
economy from the effects of the global economic downturn,
Finance Minister Jim Flaherty said on Thursday. [ID:nN08221554]
 RESEARCH ROUNDUP: GOLDCORP, KINROSS
 Following is a summary of research actions on Canadian
companies. For more, please see [RCH/CA]
 * Genuity raises Alamos Gold (AGI.TO: Quote) price target by 14
percent to C$8.00
 * Genuity upgrades Goldcorp (G.TO: Quote) to a "buy" rating and
increases price target by 5 percent to C$38.00.
 * Genuity downgrades Kinross (K.TO: Quote) to a "hold" rating from
"buy".
 (Reporting by Frank Pingue)