August 5, 2016 / 12:55 PM / a year ago

CANADA STOCKS-Futures rise after strong U.S. jobs data

(Adds economic indicator results)

Aug 5 (Reuters) - Canada’s main stock index was set to start higher on Friday, mirroring gains in U.S. markets after better-than-expected payrolls data, despite an increase in Canadian unemployment.

U.S. employment increased more than expected in July and wages picked up, which should bolster expectations of an acceleration in economic growth and raise the probability of an interest rate hike from the Federal Reserve this year.

Canada’s economy dropped an unexpected 31,200 jobs in July, sending the jobless rate up to 6.9 percent, data from Statistics Canada showed.

September futures on the S&P TSX index were up 0.27 percent at 8:30 a.m. ET.

Canada posted a larger-than-expected trade deficit of C$3.63 billion ($2.79 billion) in June, compared with a revised C$3.50 billion deficit in May, as imports rose 0.8 percent, according to Statistics Canada data.

The seasonally adjusted Ivey Purchasing Managers Index is also expected at 10:00 a.m. ET.

Canada’s main stock index notched a gain on Thursday as surging oil prices boosted energy stocks, while poor earnings hurt insurer Manulife Financial Corp and the exit of a major investor weighed on Canadian Pacific Railway’s stock.

Dow Jones Industrial Average e-mini futures were up 0.43 percent at 8:30 a.m. ET, while S&P 500 e-mini futures were up 0.28 percent and Nasdaq 100 e-mini futures were up 0.27 percent.

(Morning News Call newsletter link.reuters.com/nex49s; The Day Ahead newsletter link.reuters.com/mex49s)

TOP STORIES

Canadian plane and train maker Bombardier Inc reported a slightly bigger-than-expected quarterly loss as it delivered fewer business jets and margins were negative in its commercial aircraft division, which includes CSeries jets.

Telus Corp , one of Canada’s three biggest telecom providers, reported a higher-than-expected quarterly profit, helped by lower operating expenses.

Canadian auto parts maker Magna International Inc reported a 3.7 percent rise in quarterly profit, helped by strong vehicle sales in North America and Europe.

COMMODITIES AT 8:30 a.m. ET

Gold futures : $1,346.7; -0.89 percent

US crude : $41.77; -0.38 percent

Brent crude : $44.16; -0.29 percent

LME 3-month copper : $4,804.5; -0.55 percent

ANALYST RESEARCH HIGHLIGHTS

WSP Global Inc : RBC raises to “outperform” from “sector perform”

Baytex Energy Corp : FirstEnergy raises to “outperform” from “market perform”

Veresen Inc : BMO raises to “market perform” from “underperform”

U.S. ECONOMIC DATA ON FRIDAY

0830 Non-farm payrolls for Jul: Actual 255,000; Prior 287,000

0830 Private payrolls for Jul: Actual 217,000; Prior 265,000

0830 Manufacturing payrolls for Jul: Actual 9,000; Prior 14,000

0830 Government payrolls for Jul: Actual 38,000; Prior 22,000

0830 Unemployment rate for Jul: Actual 4.9 pct; Prior 4.9 pct

0830 Average earnings mm for Jul: Actual 0.3 pct; Prior 0.1 pct

0830 Average workweek hours for Jul: Actual 34.5 hrs; Prior 34.4 hrs

0830 Labor force participation for Jul: Actual 62.8 pct; Prior 62.7 pct

0830 U6 underemployment for Jul: Actual 9.7 pct; Prior 9.6 pct

0830 International trade mm for Jun: Actual -$44.51 bln; Prior -$41.1 bln

1030 ECRI Weekly Index: Prior 138.0

1030 ECRI weekly annualized: Prior 8.0 pct

1300 Dallas Fed PCE for Jun: Prior 1.9 pct

1500 Consumer credit for Jun: Expected 17.00 bln; Prior 18.56 bln

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory ($1= C$1.32) (Reporting by Nandi Kaul in Bengaluru; Editing by Maju Samuel)

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