June 4, 2010 / 2:23 PM / 9 years ago

CANADA STOCKS-TSX sags on U.S. jobs data, growth outlook

   * TSX falls 120.11 points, or 1.02 pct, to 11,691.76
 * Energy, materials lead retreat
 * Canada jobs data cheers, U.S. report disappoints  (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, June 4 (Reuters) - Toronto’s main stock index sank on Friday morning as commodity prices were pulled lower by weaker than forecast U.S. employment numbers and fresh concerns about European and global growth.
 The soft U.S. jobs report added to worries about European banks and talk of a “Greek-style” debt crisis in Hungary, pushing global stocks lower and dragging the euro to a four-year low against the U.S. dollar. [MKTS/GLOB]
 Energy and materials issues led the decline on the TSX as oil and metal prices skidded. [O/R] [MET/L]
 Teck Resources TCKb.TO was down 2.1 percent at C$34.38 and Suncor Energy (SU.TO) dropped 0.8 percent at C$33.01.
 Royal Bank of Canada (RY.TO) sank 1.1 percent to C$54.17, while Toronto-Dominion Bank (TD.TO) fell 0.7 percent to C$70.86.
 “The non-farms (U.S. jobs data) came out lighter than expected,” said Paul Gardner, partner and portfolio manager at Avenue Investment Management.
 “The market wants to see quick job growth, but what we’re seeing is just steady improvement in the job picture in the U.S.,” Gardner said.
 U.S. private employers hired fewer workers than expected in May, a setback for the labor market recovery, even as temporary census hiring pushed overall payrolls growth to its fastest pace in 10 years. [ID:nN03243431]
 At 10:04 a.m. (1404 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 120.11 points, or 1.02 percent, at 11,691.76, with all 10 of its main groups lower.
 Global growth concerns overshadowed a domestic employment report that showed Canada added a hearty 24,700 jobs in May, almost double the expected number, as the economy posted its fifth consecutive monthly jobs gain. The unemployment rate remained at 8.1 percent, matching market forecasts. [ID:nN04104059]
 “The Canadian numbers are just fantastic,” said Gardner.
 The domestic data helped the Canadian dollar briefly firm to a session high of C$1.0352 to the U.S. dollar, or 96.60 U.S. cents, but the currency quickly succumbed to global pressures, retreating to a session low of C$1.0507 to the U.S. dollar, or 95.17 U.S. cents. [CAD/]
 ($1=$1.05 Canadian)  (Reporting by Jennifer Kwan; editing by Rob Wilson)                                       

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