TSX Ends Lower On Weak U.S. Data, Syria Worries - Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day gain to end lower Friday, led by financial and telecom stocks on some disappointing, weaker than expected jobs data out of the U.S. Nonetheless, the data eased some concerns of any immediate tapering of the Federal Reserve's bond-buying program. Meanwhile, investors continued to fret over the tensions surrounding Syria with President Barack Obama push hard toward a military action against the civil war ravaged country for using chemical weapons on its people at the concluding day of the G20 summit.

While Canadian employment rose three times faster than consensus estimates, U.S. employment moved up less than expected in August. US jobs data were much in focus as it could help determine whether the Federal Reserve will start winding down its stimulus program in the September meeting.

The S&P/TSX Composite Index closed Friday at 12,820.92, down 24.14 points or 0.19 percent. The index touched an intraday high of 12,888.69 and a low of 12,796.66.

The Capped Telecommunication Index dropped 1.12 percent with TELUS Corp. (T) shedding 2.74 percent and Rogers Communications Inc. (RCI.B) slipping 0.85 percent.

The Diversified Metals & Mining Index moved up 1.07 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.28 percent, Osisko Mining Corp. (OSK.TO) up 1.55 percent, and Teck Resources Limited (TCK.B.TO) up 0.76 percent. Lundin Mining Corp. (LUN.TO) gathered 2.38 percent.

The Capped Materials Index gained 0.55 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 0.88 percent.

The Global Gold Index added 0.86 percent, with gold futures for December delivery gained $13.50 or 1.0 percent to close at $1,386.50 an ounce Friday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) shed 0.35 percent, while Yamana Gold Inc. (YRI.TO) gained 1.04 percent. B2Gold Corp. (BTO.TO) surged 4.78 percent, while Goldcorp Inc. (G.TO) added 0.23 percent.

U.S. crude oil moved sharply higher to end well above $110 a barrel, at a more than two-year high, on some disappointing, lesser than expected jobs data out of the U.S. which eased concerns of any immediate tapering of the Federal Reserve's bond-buying program and Syria.

The Energy Index added 0.13 percent, with U.S. crude oil futures for October delivery surging $2.16 or 2.00 percent to close at $110.53 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) shed 0.34 percent, Talisman Energy Inc. (TLM.TO) inched up 0.09 percent, and Suncor Energy Inc.(SU.TO) gained 1.16 percent.

The Financial Index shed 0.22 percent with Bank of Montreal (BMO.TO) down 0.53 percent, Manulife Financial Corp. (MFC.TO) down 0.95 percent, and National Bank of Canada (NA.TO) up 0.24 percent. The Bank of Nova Scotia (BNS.TO) gained 0.42 percent.

The Information Technology Index shed 1.22 percent, with BlackBerry Limited (BB.TO) slipping 2.67 percent.

The Capped Industrials Index lost 0.50 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 0.80 percent.

Brookfield Infrastructure (BIP.UN.TO) edged up 0.22 percent after announcing a further investment of approximately $490 million in Arteris S.A.,its Brazilian toll road platform, increasing its ownership to about 31 percent.

Airlines company Air Canada (AC.B.TO) added 3.06 percent after reporting its August traffic improved 4.7 percent on a system-wide capacity increase of 2.9 percent. Traffic, measured in revenue passenger miles increased to 5,995 million from 5,727 million in the same period last year.

Fertilizer and agricultural products distributor Agrium Inc. (AGU.TO) slipped 0.11 percent after announcing the receipt of a final regulatory approval to acquire the retail agri-products business of Canada's biggest grain handler Viterra, Inc. (VT.TO, VTA.AX) from Swiss commodities trader and miner Glencore Xstrata Plc.

In economic news, Statistics Canada said the economy has created 59,000 jobs in August, mainly in part-time work, and the unemployment rate declined 0.1 percentage points to 7.1 percent. Year-over-year, employment increased to 246,000 up 1.4 percent. Economists expected a modest increase of 20,000 jobs in August.

In economic news from the U.S., the Labor Department said non-farm payroll employment increased by 169,000 jobs in August compared to economist estimates for an increase of about 175,000 jobs. The report also showed a notable downward revision to the pace of job growth in July, with the revised data showing an addition of 104,000 jobs compared to the previously reported increase of 162,000 jobs. Despite the weaker than expected job growth, the unemployment rate dipped to 7.3 percent in August from 7.4 percent in July. The unemployment rate had been expected to come in unchanged.

From the eurozone, Germany's foreign trade surplus decreased more than forecast by economists in July amid a fall in exports, data from the Federal Statistical Office revealed. The trade surplus fell to EUR16.1 billion in July from EUR 17 billion in June. Economists had forecast a surplus of EUR 16.5 billion. In calendar and seasonally adjusted terms, the surplus was EUR 14.5 billion.

Meanwhile, Germany's industrial production decreased in July at a notably faster rate than economists had forecast, latest data showed. Industrial production fell a seasonally and calendar-adjusted 1.7 percent in July from the previous month, marking a deterioration from June's 2 percent increase, preliminary data released by the Federal Ministry of Economics and Technology showed. Economists had forecast production to record a 0.5 percent contraction in July

Elsewhere, British industrial production decreased in July, the latest figures from the Office for National Statistics revealed. Production declined 1.6 percent year-on-year in July, reversing a 1.4 percent increase in June. This compares with forecast for a 1.7 percent fall.

Britons' inflation expectations have eased from May and the proportion of respondents expecting an interest rate hike in the next 12 months was the lowest since 2008, results of a key survey from the Bank of England revealed.