September 3, 2010 / 2:51 PM / 8 years ago

CANADA STOCKS-TSX heads higher on upbeat U.S. jobs data

* TSX up 0.31 percent at 12,149.02

* Financials lead 8 of 10 main sectors higher

* Golds out of favor as risk appetite rises

* U.S. jobs data eases fears of double-dip recession (Adds details)

By Ka Yan Ng

TORONTO, Sept 3 (Reuters) Toronto’s main stock index rose broadly on Friday morning after closely watched U.S. employment numbers fell less than expected, assuaging fears that the U.S. economy is sliding back into recession.

Financials, often a play on the broader economy, led eight of the TSX’s 10 main groups higher with a 0.95 percent advance. Toronto-Dominion Bank (TD.TO) added 1.35 percent to C$74.16, while Royal Bank of Canada (RY.TO) climbed 1.13 percent to C$52.89.

Insurers were among the strongest climbers with Manulife (MFC.TO) jumping 3.6 percent to C$13.32, while Sun Life (SLF.TO) was up 3.5 percent at C$27.47.

At 10:20 a.m. (1420 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 37.93 points, or 0.31 percent, at 12,149.02.

“This market is like a coiled spring,” said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services. “The market has got a sniff that things are on a real mend here. A slow and shallow recovery is in the cards.”

U.S. non-farm employment fell for a third straight month in August, but the drop of 54,000 was far less than forecasts, while private payrolls growth was higher than expected. [ID:nN02227856]

The TSX cut gains from a 16-week high after data showed the U.S. non-manufacturing sector grew at a slower pace than expected in August. [ID:nN03111828]

Investors hit the sell button on gold miners, which saw the safe-haven precious metal fall to its lowest in three session after the U.S. jobs data.

The global gold subsector of the TSX dropped nearly 2 percent. The fall in gold prices also weighed on the materials group, down 1.2 percent. Most gold producers were down between 1 and 2 percent, including Barrick Gold (ABX.TO), off 1.3 percent at C$46.99, while Yamana Gold (YRI.TO) slipped 1.5 percent to C$10.71.

“Gold is your safe haven asset. It’s something you buy in case you have a world-collapsing calamity. There’s no reason to hold gold in a market that is on the mend,” said Schwartz.

Goldcorp (G.TO) was down almost 5 percent at C$43.92, additionally pressured by news it has agreed to buy Argentina-focused gold miner Andean Resources Ltd AND.TO for C$3.6 billion, trumping a competing offer from Eldorado Gold Corp (ELD.TO). [ID:nSGE6820BF]

Eldorado was off 4.7 percent at C$19.56. (Reporting by Ka Yan Ng; editing by Rob Wilson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below