July 2 (Reuters) - Toronto’s main stock index could open lower on Friday after U.S. jobs data came in lighter than expected, signaling persistent weakness in the economy of Canada’s biggest trade partner.
U.S. employment fell for the first time this year in June as thousands of temporary census jobs ended and private hiring grew less than expected, dealing a blow to President Barack Obama who has identified job creation as a key priority.
Mining issues may come under the spotlight in Toronto as Australia dumped its proposed “super profits” tax on the sector for a lower resource rent tax. Higher copper and gold prices could benefit shares in the sector.
European shares rose, with miners and banks among the top gainers.
Asian markets were mixed, with Nikkei closing just above a key retracement support level.
Here is some news that could affect stock prices:
Oil inched up to above $73 a barrel on Friday, bouncing from about a three-week low hit on Thrusday, but the market remained preoccupied by concerns over the global economy. [O/R]
Copper prices rallied on Friday, rising 2 percent in Shanghai and 2.5 percent in London, bouncing off the previous session’s two-week low but still on track for a 4 percent weekly loss. Prices of zinc on the London Metal Exchange rose more than 4 percent on Friday on growing expectations of stronger demand from steel makers. [MET/L]
Gold rebounded 1 percent in Europe on Friday as physical buyers in particular took advantage of the previous day’s price fall to buy into the market, with traders now looking ahead to a key U.S. jobs report due later. [GOL/]
NORTHGATE TO BEGIN CONSTRUCTION AT YOUNG-DAVIDSON MINE
Northgate Minerals Corp NGX.TO said on Friday regulators will allow it to begin construction and development of the Young-Davidson gold mine in northern Ontario. [ID:nN02194215]
SNC-LAVALIN TENDER SUSPENDED
Algeria has put on hold a big construction contract it had earmarked for Canada’s SNC-Lavalin (SNC.TO), the firm said on Thursday, as part of a major overhaul of the state energy firm’s dealings with contractors. [ID:nLDE66022V]
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.
* Nimin Energy Corp NNN.TO coverage started with overweight rating and price target of $2.50 at Thomas Weisel
* Shaw Communications (SJRb.TO) price target cut to $23 from $24 at RBC
Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Frank McGurty