CANADA STOCKS-TSX down nearly 1 pct on weak jobs data, EU fears

Fri Nov 4, 2011 11:31am EDT
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 * TSX falls 106.88 pts, or 0.9 pct, at 12,362.58
 * Canadian jobs data unexpectedly weak; U.S. data mixed
 * Financials down more than 1 pct
 (Adds details, analyst's comment)
 By Jon Cook
 TORONTO, Nov 4 (Reuters) - Toronto's main stock index was
down nearly 1 percent on Friday, hurt by weakness in North
American jobs data and doubts about Europe's bailout package.
 Unexpected job losses threw the Canadian market a curve, as
the economy, expected to add jobs after a strong September,
lost 54,000 jobs in October, according to a Statistics Canada
report. [ID:nN1E7A30MF]
 "Given the kind of optimism that we have preached around
here for a while about the state of the economy of Canada some
people might be a little bit surprised by those numbers," said
Fred Ketchen, director of equity trading at ScotiaMcLeod.
 "We've had a losing week in North American markets and I
don't see that changing here today."
 U.S. jobs data was mixed. U.S. employers hired fewer
workers in October but the jobless rate fell to a six-month low
and job gains in the prior two months were stronger than
previously thought, pointing to some improvement in the
still-weak labor market. [ID:nN1E7A21ET]
 Adding to investor worries, German Chancellor Angela Merkel
said few countries in the Group of 20 leading economies had
committed to a euro zone bailout fund. [MKTS/GLOB]
 The Canadian financials sector led the market down, falling
1.5 percent. Royal Bank of Canada (RY.TO: Quote) was the biggest
loser, dropping 2.1 percent to C$45.99.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was down 106.88 points, or 0.9 pct, at 12,362.58 by
late morning. The index at one point fell more than 1 percent
to hit a session low of 12,308.21.
 Seven of the index's top main sectors were negative, with
energy stocks falling 1 percent and the heavily weighted
materials sector down 0.6 percent.
 After gaining more than 9 percent the previous session,
Canadian Natural Resources (CNQ.TO: Quote) was down 1.9 percent to
 The decline offset broader market optimism after Greek
Finance Minister Evangelos Venizelos promised to drop a
contentious referendum plan on the debt-riddled country's euro
zone rescue fund, in the face of intense pressure from European
leaders. [ID:nA8E7K1026]
 Speculation of the move had sent markets soaring on
Thursday, as the TSX jumped nearly 2 percent, reversing most of
the losses from earlier in the week.
 "Today that level of confidence is knocked back by a notch
or two," said Ketchen.
 (Editing by Jeffrey Hodgson)