Financials Lift TSX Higher Friday Morning - Canadian Commentary

(RTTNews) - Snapping their three-session losing streak, Canadian stocks were moving higher Friday morning amid upbeat jobs data from both sides of the border. While the Canadian economy created 22,000 jobs, with unemployment steady at 6.9 percent, data from the US revealed stronger than expected jobs growth in November.

Elsewhere, Asian stocks fell broadly overnight as investors treaded cautiously awaiting U.S. non-farm payroll data, due to be released later in the global day, for clues on the timing of Fed tapering. The European markets are trading higher even as traders digest data showing Germany's factory orders fell more than expected in October driven by broad-based declines in domestic and foreign orders.

The S&P/TSX Composite Index gained 76.81 points or 0.58 percent to 13,277.21, after losing over 200 points or nearly 2 percent in the past three sessions.

Financial services provider Scotiabank (BNS.TO) moved up nearly 1 percent after reporting improved fourth-quarter net income at C$1.573 billion or C$1.30 per share compared to C$1.398 billion or C$1.18 per share recorded last year. Adjusted earnings per share grew to C$1.31 from C$1.20 in the same quarter last year. Analysts expected the bank to report earnings of C$1.32 per share for the quarter.

Canadian Western Bank (CWB.TO) jumped over 3 percent, while Royal Bank (RY.TO) and TD Bank (TD.TO) gathering over 1 percent each.

The price of gold was ticking higher Friday morning, with the US dollar trading firm amid the release of non-farm payrolls data. Gold for February edged up $0.80 to $1,232.70 an ounce.

Among gold stocks, Royal Gold (RGL.TO), Barrick Gold (ABX.TO) and Goldcorp. (G.TO) added around 1 percent each.

Crude oil was trading higher Friday morning as traders digest today's upbeat employment data. Crude for January added $0.24 to $97.62 a barrel.

In the oil patch, MEG Energy (MEG.TO) jumped nearly 4 percent.

Bombardier Inc. (BBD_A.TO, BBD_B.TO) said its unit Bombardier Aerospace has got orders for Q400 NextGen aircraft from Nantong Tongzhou Bay Aviation Industry Co., Ltd, valued at about $995 million. The stock was up over 2 percent.

Air Canada (AC_A.TO) rose 1 percent after announcing that it will operate daily flights between Toronto-Pearson and Tokyo-Haneda (Tokyo International Airport) beginning July 1, 2014 using the Boeing 787 Dreamliner.

Steel structures company ADF Group INC. (DRX.TO) swung to profit in third quarter, reporting net profit of C$4.38 million or C$0.13 per share compared with a loss of C$1.16 million or C$0.04 per share, a year earlier. The stock rose nearly 10 percent.

In economic news, Statistics Canada said the economy created 22,000 jobs in November, helping the unemployment rate to remain steady at 6.9 percent. Economists expected only 12,000 job additions in November.

From south of the border, the U.S., Labor Department said non-farm payroll employment rose by 203,000 jobs in November following a revised increase of 200,000 jobs in October. Economists had been expecting employment to increase by about 180,000 jobs compared to the addition of 204,000 jobs originally reported for the previous month. With the stronger than expected job growth, the unemployment rate pulled back to 7.0 percent in November from 7.3 percent in October

Separately, the Commerce Department said personal income edged down by 0.1 percent in October after rising by 0.5 percent in September. The drop surprised economists, who had expected income to increase by 0.3 percent. Meanwhile, personal spending rose by 0.3 percent in October following a 0.2 percent increase in September. The increase in spending matched economist estimates.

From the euro zone, Germany's factory orders fell more than expected in October driven by broad-based declines in domestic and foreign orders, official data showed. Factory orders were down 2.2 percent from September, bigger than the expected fall of 1 percent and reversed the 3.1 percent increase seen in September.

Elsewhere, Britons' inflation expectations increased in November and the proportion of respondents expecting an interest rate hike in the next 12 months increased from August, a closely watched survey showed. The median inflation expectations for the coming year rose to 3.6 percent from 3.2 percent in August, the Bank of England/GfK NOP Inflation Attitudes survey said.