TSX Settles Higher On Jobs Data, Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Friday, tracking rising global markets, rebounding from the sharp declines in the last two sessions. The continued recovery of the Chinese stock market and optimism for a Greek deal contributed to the uptick, with a smaller than expected decline in Canadian jobs providing a boost.

Canada's economy lost 6,400 jobs in June, lesser than the expected decline of 10,000 jobs, data from Statistics Canada showed Friday. In May, the economy had created 58,900 jobs. The unemployment rate held steady at 6.8 percent for the fifth consecutive month. Economists expected the jobless rate to increase to 6.9 percent in the month.

Markets in Europe ended firmly in positive territory Friday, on hopes that Greece will finally be able to reach a new agreement with its creditors. The Greek government offered a cash-for-reforms proposal to creditors that comprises spending cuts and tax hikes in exchange for a third bailout.

Prime Minister Alexis Tsipras' request for at least 53.5 billion euros in bailout funds for the next three years will be presented in the Greek parliament for approval on Friday.

Eurozone finance ministers will meet on Saturday in Brussels to review the Greek request, followed by a summit of European leaders on Sunday to reach a final agreement.

Markets in the United States also ended positively, due mainly to easing concerns over Greece and China.

Speaking at the City Club of Cleveland on Friday, Yellen said the U.S. economy is showing signs of improvement and consequently expects to introduce a rate hike this year. She stressed the momentum of the U.S. economy is good with job gains leading to stronger consumer spending and consequently more employment and wage gains.

The benchmark S&P/TSX Composite Index closed Friday at 14,411.07, up 132.58 points or 0.93 percent. The index scaled an intraday high of 14,419.52 and a low of 14,338.06.

On Thursday, the index closed down 133.58 points or 0.93 percent, at 14,278.49. The index scaled an intraday high of 14,558.69 and a low of 14,275.54.

Crude oil futures ended lower on demand growth concerns after the International Energy Agency's latest forecast showed waning demand for crude oil next year, and warned of a drop in prices as Iran re-enters the market.

The Energy Index shed 0.55 percent, with U.S. crude oil futures for August delivery dipping $0.04, to settle at $52.74 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.62 percent, while Canadian Natural Resources Limited (CNQ.TO) moved up 0.61 percent. Crescent Point Energy Corp. (CPG.TO) declined 4.28 percent, while Encana Corp. (ECA.TO) dived 4.08 percent.

Pacific Rubiales Energy Corp. (PRE.TO) added 1.75 percent.

Cenovus Energy Inc. (CVE.TO) fell 1.52 percent, Canadian Oil Sands (COS.TO) shed 1.44 percent, and Enbridge (ENB.TO) added 0.49 percent.

Gold futures ended lower after U.S. Federal Reserve Chief Janet Yellen stressed there will be an interest hike this year, even as investors opted for the riskier equity assets with global markets on the rise.

The Gold Index fell 1.27 percent, with gold for August delivery shedding $1.30 or 0.1 percent, to settle at $1,157.90 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 1.61 percent, Barrick Gold Corp. (ABX.TO) slipped 0.47 percent, Yamana Gold Inc. (YRI.TO) plunged 5.26 percent and IAMGOLD Corp. (IMG.TO) dropped 3.36 percent.

The Capped Materials Index fell 0.32 percent, as Agrium Inc. (AGU.TO) gained 1.50 percent and Agnico Eagle Mines Limited (AEM.TO) dipped 2.61 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) moved up 0.14 percent.

The Diversified Metals & Mining Index slipped 0.02 percent, as First Quantum Minerals Ltd. (FM.TO) jumped 4.62 percent, and HudBay Minerals (HBM.TO) climbed 2.96 percent. Sherritt International (S.TO) plunged 5.79 percent, after having surrendered 6.40 percent yesterday.

Teck Resources (TCK-A.TO) shed 1.06 percent. The company has agreed to sell future output from its Chile mine to Royal Gold for $525 million upfront and 15 percent of monthly average gold price at each delivery.

However, Teck Resources is delaying the start of its Frontier oil sands project by five years amid the outlook for low energy prices.

The heavyweight Financial Index jumped 1.31 percent, as Royal Bank of Canada (RY.TO) added 1.46 percent, National Bank of Canada (NA.TO) moved up 1.45 percent, and Bank of Montreal (BMO.TO) gathered 1.20 percent.

Toronto-Dominion Bank (TD.TO) moved up 1.02 percent, Bank of Nova Scotia (BNS.TO) gathered 0.79 percent, and Canadian Imperial Bank of Commerce (CM.TO) advanced 0.82 percent.

The Capped Health Care Index jumped 2.13 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 3.96 percent, Concordia Healthcare Corp. (CXR.TO) surged 5.90 percent, and Catamaran (CCT.TO) dipped 0.06 percent.

The Capped Industrials Index gained 1.29 percent, as Bombardier Inc. (BBD-A.TO) slipped 1.00 percent and Finning International Inc. (FTT.TO) added 0.73 percent. Canadian National Railway (CNR.TO) moved up 1.56 percent, while Canadian Pacific Railway (CP.TO) gathered 1.68 percent. Air Canada (AC.TO) gained 0.38 percent.

The Capped Information Technology Index gained 1.63 percent. BlackBerry (BB.TO) is advancing by 0.30 percent and Constellation Software (CSU.TO) surged 5.17 percent. Descartes Systems Group (DSG.TO) moved up 0.50 percent.

The Capped Telecommunication Index moved up 1.01 percent, as TELUS Corp. (T.TO) added 1.10 percent, BCE Inc. (BCE.TO) moved up 1.50 percent, Manitoba Telecom Services (MBT.TO) gained 0.39 percent, and Rogers Communication (RCI-B.TO) advanced 1.00 percent.

DHX Media Ltd. (DHX-A.TO) surged 6.04 percent, after it announced that it will not be proceeding with the public offering of variable voting shares and common voting shares previously announced on July 6, 2015.

Loblaw Companies Limited (L.TO) gathered 0.87 percent, after reaching an agreement to end a labor strike. Employees of 69 Loblaw-owned stores in Ontario markets from Ottawa to Windsor have voted to accept a six-year contract.

Onex Corp. (OCX.TO) gained 0.98 percent, after agreeing to sell Sitel Worldwide Corp. for approximately US$55 million.

In economic news, wholesale inventories in the U.S. increased much more than expected in May, a report from the Commerce Department showed Friday. Wholesale inventories increased by 0.8 percent in May after rising 0.4 percent in April. Economists expected inventories to rise by 0.3 percent.

From Europe, Germany's wholesale prices continued to decline in June, figures from Destatis showed Friday. Wholesale prices dropped 0.5 percent year-on-year in June, slightly faster than May's 0.4 percent fall. The wholesale price index has been falling since July 2013.

French industrial output recovered as expected in May, the statistical office Insee reported Friday. Industrial output grew 0.4 percent month-on-month in May, reversing a 0.8 percent fall in April. This was the fastest growth in three months. The monthly rate matched economists' expectations.

Britain's trade deficit in goods in May was the smallest in nearly two years as imports declined and exports remained unchanged, data from the Office for National Statistics showed Friday. The visible trade deficit for May was GBP 8 billion, which was the smallest shortfall since June 2013. It was also smaller than the GBP 9.7 billion deficit predicted by economists.

U.K. construction output declined for the second straight month in May, defying economists' expectations for an increase, data from the Office for National Statistics showed Friday. Construction output fell 1.3 percent month-over-month in May, faster than previous month's 0.5 percent drop. Economists expected an increase of 0.8 percent for the month.