June 4, 2010 / 12:58 PM / 7 years ago

CANADA STOCKS-TSX may open lower after weak U.S. jobs data

June 4 (Reuters) - Toronto’s main stock index could open lower on Friday as unexpectedly weak U.S. employment data overshadowed a report showing Canadian job gains in May were almost twice as high as expectations.

Wall Street was also set for a lower start after the report, with fresh investor worries about Europe’s sovereign debt crisis in the region also weighing. [.N]

U.S. nonfarm payrolls grew at their fastest pace in 10 years in May, buoyed by recruitment for the decennial census, but private hiring slowed sharply as businesses opted to increase hours rather than hire new workers. [ID:nN03243431]

Separately, Statistics Canada said 24,700 jobs were added in May, as the economy posted its fifth consecutive monthly increase in employment. Analysts had predicted an increase of 12,500 jobs. [ID:nN04104059]

The G20 policymakers expressed concern about the health of the world economy even as they closed ranks behind the euro zone’s efforts to tackle a debt crisis that has rattled global markets. [ID:nTOE65300H]

Here is some news that could affect stock prices:

OIL EASES

U.S. crude oil futures fell more than $1 on Friday, briefly falling below $73 a barrel, after a report showed U.S. non-farm payrolls rose a less-than-expected 431,000 in May. [O/R]

COPPER RISES

Copper fell near a 5-month low on Friday after weaker than forecast May U.S. jobs data dented confidence already fractured by the euro zone debt crisis and worries over Chinese monetary tightening. [MET/L]

CANADIAN WESTERN BANK PROFIT SURGES

Canadian Western Bank’s (CWB.TO) quarterly profit surged past expectations on Thursday as a recent acquisition boosted net interest margins, but the regional lender cautioned it expects earnings growth to moderate in the months ahead. [ID:nN03230208]

AIR CANADA, WESTJET SAY FLIGHTS MORE CROWDED

Air Canada ACa.TO and WestJet Airlines Ltd (WJA.TO), the country’s two largest airlines, said on Thursday passengers levels rose last month as the economic recovery gained steam, sending shares of both rising. [ID:nN03227540]

SUNCOR OIL SANDS OUTPUT UP

Suncor Energy Inc (SU.TO) said on Thursday that output from its oil sands operations rose last month, despite the shutdown of its largest upgrader for planned maintenance. [ID:nN03262596]

PENSION PLANS SAY NO TO MAGNA‘S DUAL-SHARE PAYOUT

Two big pension plans came out swinging on Thursday against a plan that would pay the colorful founder of auto parts maker Magna International MGa.TO nearly $900 million to cede control, throwing up a possible road block to the deal. [ID:nN03233248]

GALLEON ENERGY TO SELL UNIT

Galleon Energy Inc GO.TO said on Friday it agreed to sell its unit that holds a portion of its Puskwa property in Alberta to a public company for about C$135 million in cash, and would use the net proceeds to reduce its bank debt. [ID:nSGE6530CR]

WESTERN COAL REOPENING MINE

Western Coal WTN.TO said on Friday it is reopening its Willow Creek coal mine in British Columbia, as demand and pricing for metallurgical coal have strengthened significantly in recent months. [ID:nN0498933]

GLG LIFE TECH SIGNS MOU

Life sciences company GLG Life Tech Corp GLG.TO on Friday signed an MoU with leading sugar producer, Grupo Azucarero Mexico, regarding the distribution and marketing of its stevia extract products. [ID:nWNAB6100]

GAMMON UNION WORKERS HALT OPS AT EL CUBO

Gammon Gold GAM.TO, a Canadian precious metals miner, said on Thursday unionized workers at its El Cubo mine in Mexico have disrupted operations following a dispute over a profit-sharing agreement. [ID:nN03258588]

RESEARCH ROUNDUP

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

Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.

* Coro Mining Corp COP.TO price target cut to $0.80 from $0.90; rating strong buy at Raymond James

* Harry Winston Diamond Corp HW.TO rating cut to neutral from buy at UBS

* Orezone Gold Corp ORE.TO price target raised to $1.60 from $1.30; rating outperform at Raymond James.

* Vermilion Energy Trust VET_u.TO price target raised to $40 from $39; rating outperform at Macquarie.

$1=$1.04 Canadian Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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