Canadian Stocks Are Up On Strong Employment Data - Canadian Commentary

(RTTNews) - The Canadian stock market is trading in the green Friday morning, following the release of a pair of stronger than expected employment reports. The widely watched U.S. jobs report for February show better than expected growth in employment, while the Canadian jobs report showed unexpected growth in employment.

Data from Statistics Canada showed that the employment increased by 15,300 jobs in February after jumping by 48,300 jobs in January. The figure came as a surprise to economists, who had forecast the jobs to fall by 5,000.

The jobless rate declined to 6.6 percent from 6.8 percent in January. Economists were looking for the jobless rate to remain unchanged for the month.

Markets in the United States are trading modestly to the upside Friday morning. The Labor Department released a report this morning showing stronger than expected job growth in the month of February, which reinforced expectations for an interest rate hike by the Federal Reserve next week.

The Labor Department said non-farm payroll employment jumped by 235,000 jobs in February after surging up by a revised 238,000 jobs in January.

Economists had expected employment to climb by about 195,000 jobs compared to the addition of 227,000 jobs originally reported for the previous month.

Markets in Europe are also positive Friday, but have pared their early gains following the release of the U.S. jobs report.

The benchmark S&P/TSX Composite Index is up 11.15 points or 0.07 percent at 15,507.99.

On Thursday, the index closed down 0.14 points or 0.00 percent, at 15,496.84. The index scaled an intraday high of 15,583.87 and a low of 15,430.97.

The Gold Index is advancing 0.71 percent. Gold prices are basically flat Friday morning, after today's strong U.S. jobs report reinforced expectations for a Fed rate hike next week.

Barrick Gold (ABX.TO) is increasing 1.13 percent and Goldcorp (G.TO) is gaining 0.66 percent. Kinross Gold (K.TO) is climbing 1.64 percent and Yamana Gold (YRI.TO) is rising 1.49 percent. B2Gold (BTO.TO) is up 1.60 percent and IAMGOLD (IMG.TO) is advancing 2.37 percent.

The Capped Materials Index is also up 0.76 percent. Agnico Eagle Mines (AEM.TO) is advancing 1.58 percent and Franco-Nevada (FNV.TO) is climbing 1.48 percent. Silver Wheaton (SLW.TO) is rising 0.16 percent and Agrium (AGU.TO) is adding 0.01 percent. Potash Corp. of Saskatchewan (POT.TO) is gaining 0.17 percent.

The Capped Healthcare Index is higher by 0.51 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 1.60 percent and Extendicare (EXE.TO) is gaining 0.77 percent.

The Capped Information Technology Index is gaining 0.47 percent. Descartes Systems Group (DSG.TO) is increasing 1.71 percent.

The Capped Industrials Index is up 0.38 percent. Canadian National Railway (CNR.TO) is gaining 0.74 percent and Canadian Pacific Railway (CP.TO) is rising 0.80 percent. Air Canada (AC.TO) is increasing 0.91 percent and Finning International (FTT.TO) is adding 0.16 percent.

The Capped Telecommunication Services Index is up 0.07 percent. Rogers Communications (RCI-B.TO) is rising 0.11 percent and BCE (BCE.TO) is adding 0.09 percent. Manitoba Telecom Services (MBT.TO) is advancing 0.18 percent.

The heavyweight Financial Index is decreasing 0.32 percent. Toronto-Dominion Bank (TD.TO) is down 2.10 percent and National Bank of Canada (NA.TO) is losing 0.31 percent.

The Energy Index is falling 0.27 percent. Crude oil prices are little changed Friday morning, holding around $49 a barrel.

Suncor Energy (SU.TO) is losing 0.35 percent and Husky Energy (HSE.TO) is weakening by 0.95 percent. Imperial Oil (IMO.TO) is falling 0.85 percent and Canadian Natural Resources (CNQ.TO) is surrendering 0.65 percent. Encana (ECA.TO) is decreasing 0.63 percent and Cenovus Energy (CVE.TO) is weakening by 0.68 percent. Crescent Point Energy (CPG.TO) is dropping 0.81 percent.

On the economic front, Germany's exports recovered and import growth accelerated in January, figures from Destatis showed Friday.

Exports advanced by more-than-expected 2.7 percent month-on-month in January, in contrast to a 2.8 percent fall in December. At the same time, imports grew at a faster pace of 3 percent after edging up 0.1 percent.

Exports were forecast to grow 2 percent and imports to rise 0.5 percent in January.

As a result, the trade surplus increased to a seasonally adjusted EUR 18.5 billion from EUR 18.3 billion in December.

Germany's wholesale prices increased the most in more than five years in February, data from Destatis showed Friday. Wholesale prices advanced 5 percent in February from prior year, following a 4 percent increase in January.

France's industrial production declined unexpectedly in January, data from the statistical office Insee showed Friday. Industrial production slid 0.3 percent, confounding expectations for an increase of 0.5 percent. Production had fallen 1.1 percent in December.

UK industrial production decreased for the first time in three months in January, the Office for National Statistics showed Friday. Industrial output slid 0.4 percent in January from December, when it grew 0.9 percent. Output was forecast to fall 0.5 percent. This was the first decrease since October.

Another report from the ONS showed that the construction output fell by 0.4 percent compared with December, when it climbed 1.8 percent. However, output grew on a three month-on-three month basis by 1.8 percent.

The UK visible trade deficit remained broadly unchanged in January, data from the Office for National Statistics showed Friday. The deficit on trade in goods, came in at GBP 10.83 billion versus GBP 10.91 billion shortfall in December. The deficit was expected to widen to GBP 11.1 billion.

In commodities, crude oil futures for April delivery are down 0.11 or 0.22 percent at $49.17 a barrel.

Natural gas for April is up 0.021 or 0.71 percent at $2.995 per million btu.

Gold futures for April are up $0.20 or 0.02 percent at $1,203.40 an ounce.

Silver for May is down $0.026 or 0.15 percent at $17.01 an ounce.