RTTN: TSX Moves Higher Amid Weak Commodities, Upbeat Data
(RTTNews) - Canadian stocks were hovering in the green Friday morning as commodities were struggling to hold on to their recent gains despite upbeat jobs data from both sides of the border. While Canada reported job additions for a second consecutive month, data out of U.S. revealed that the unemployment rate fell to its lowest level in September since hitting a matching rate in January of 2009.
The S&P/TSX Composite Index added 22.94 points or 0.18 percent to12,470.62, after adding 0.75 percent in the previous session.
Among base-metals stocks, Teck Resources (TCK_B.TO) and Inmet Mining (IMN.TO) gathered close to 2 percent each.
In the commodities market, the price of crude oil was steady above the $90-mark Friday morning, with crude for November Delivery shedding $1.54 to $90.17 a barrel.
In the oil patch, Niko Resources (NKO.TO) and Coastal Energy (CEN.TO) gained around 3 percent each. Pacific Rubiales Energy (PRE.TO) was up 2 percent.
Gold stocks were mixed as the price of bullion was retreating from its multi-month high. The price of gold was ticking lower Friday morning as the U.S. dollar was trading firm versus a basket of currencies amid non-farm payroll data. Gold for December eased $8.90 to $1,787.60 an ounce.
Agnico-Eagle Mines (AEM.TO) was adding 1 percent, while Allied Nevada Gold (ANV.TO) was losing 1 percent.
Meanwhile, Zimbabwe-focused junior gold company New Dawn Mining Corp. (ND.TO) surged 9 percent after announcing the court approval to acquire all outstanding minority shares of its Falcon Gold Subsidiary in Zimbabwe, in which New Dawn owns or controls approximately 85 percent of the equity.
In economic news Statistics Canada said the economy created 52,000 jobs in September mainly in full-time work. However, the unemployment rate rose 0.1 percentage points to 7.4 percent as more people participated in the labor market. Economists expected only 10,000 jobs creations in September.
Separately, the agency said municipalities issued building permits worth $7.3 billion in August, a 7.9 percent increase, following a 2.8 percent decline in July. The increase in August originated from higher construction intentions in the non-residential sector, which more than offset a decrease in the residential sector. Meanwhile, the value of permits in the non-residential sector increased 25.2 percent from July to $3.2 billion, the highest level in almost four years.
From the U.S., the Labor Department said that employment increased by 114,000 jobs in September following an upwardly revised increase of 142,000 jobs in August. Economists had expected employment to increase by 113,000 jobs compared to the addition of 96,000 jobs originally reported for the previous month. The continued job growth pushed the unemployment rate down to 7.8 percent in September from 8.1 percent in August. The drop surprised economists, who had expected the unemployment rate to come in unchanged.
Elsewhere, Germany's factory orders declined more than expected in August, the Federal Ministry of Economics and Technology reported. Orders fell 1.3 percent from a month ago, when it rose 0.3 percent. Orders were forecast to decline by 0.5 percent. Domestic orders slipped 3 percent on a monthly basis, while foreign orders remained flat in August.
