Banks, Energy Lead Market Higher Despite UK Shock -- Canadian Commentary

(RTTNews) - Canadian stocks edged higher for a second session Friday, as British Prime Minister Theresa May is expected to survive a setback for the Conservative party, which lost their majority in the Parliament.

The ruling party is 10 seats short of the 326 seats required for a majority in the 650-member House of Commons, but May says she has a tentative agreement to form a coalition with a small Northern Ireland party.

Bay Street was cheered by news that Canadian employment rose by 55,000 in May, spurred by an increase in full-time work. It was the fastest jobs growth in eight months.

At the same time, the unemployment rate rose by 0.1 percentage points to 6.6%, the result of more people participating in the labor market, Statistics Canada said.

The TSX Composite Index was up 50.12 points, or 0.32%, to 15,473.21.

Financials rose 1 percent, adding to this week's gains. Traders shrugged off warnings from the Bank of Canada about the growing bubble in the housing sector.

Energy stocks rose 1.9 percent, trimming recent losses. Crude oil futures inched higher despite industry figures showing U.S. drillers continued to add rigs last week.

The number of rigs drilling for oil in the U.S. rose by eight in the past week to 741, according to Baker Hughes Inc. The rig count has risen 21 weeks in a row, the fastest pace on record.

July WTI oil climbed 19 cents, or 0.4%, to settle at $45.83/bbl. However, prices dropped about 4% for the week, hitting a yearly low.

Encana Corp. (ECA.TO, ECA) announced its unit, Encana Oil & Gas (USA), has reached an agreement to sell its Piceance natural gas assets for $735 million. Shares rose 4.7 percent.

Hudson's Bay Co. (HBC.TO), owner of Saks Fifth Avenue and Lord & Taylor, will eliminate about 2,000 positions as part of restructuring efforts. The news follows disappointing quarterly results. Shares tumbled 10 percent.