Snapping their four-session losing streak, Canadian stocks were trading in the green Friday morning as traders now took a more optimistic view of the ECB's stance on bond buying to overcome the euro zone debt crisis. Meanwhile, today data from the U.S., Canada's largest trading partner, revealed employment in the nation rose by more than anticipated in the month of July.
The S&P/TSX Composite Index rebounded 148.79 points or 1.29 percent to 11,655.29, after losing over 250 points or 2 percent in the past four straight sessions.
The Diversified Materials Index surged 2 percent, with Inmet Mining (IMN.TO) gaining around 4 percent. Teck Resources (TCK_B.TO) and First Quantum Minerals (FM.TO) gathered around 2 percent each.
The price of crude oil was paring recent losses amid tight supplies in Europe due to maintenance work in the North Sea and on fear of tensions in the Middle East. Crude for September gained $3.46 to $90.59 a barrel.
In the oil patch, Canadian Natural Resources (CNQ.TO), Suncor Energy (SU.TO) and Cenovus Energy (CVE.TO) gathered around 3 percent each.
Among financial plays, National Bank (NA.TO), Royal Bank (RY.TO) and TD Bank (TD.TO) moved up close to 2 percent each.
Financial services company IGM Financial Inc. (IGM.TO) moved up 1 percent after posting second-quarter net income of C$179.0 million or C$0.70 per share down from C$212.8 million or C$0.82 per share in the previous year quarter. Analysts were expecting the company to report earnings of C$0.75 per share.
Fertilizer producer CF Industries Holdings, Inc. (CF) agreed to acquire Canada's biggest grain handler Viterra, Inc.'s (VT.TO, VTA.AX) 34 percent interest in Canadian Fertilizers Ltd. or CFL, from Swiss commodities trader Glencore International Plc (GLEN.L) for C$915 million in cash. Shares of Viterra edged up 0.20 percent.
The price of gold was moving higher Friday morning as the U.S. dollar was trading mixed amid the release of non-farm payrolls report. Gold for December was up $9.10 to $1,596.50 an ounce.
Among gold stocks, Detour Gold (DGC.TO) and Allied Nevada Gold (ANV.TO) moved up around 3 percent each. Goldcorp. (G.TO) and Barrick Gold (ABX.TO) added around 1 percent each.
Meanwhile, engineering and construction company SNC-Lavalin (SNC.TO) dived nearly 5 percent after reporting a sharply lower second-quarter net income at C$32.49 million or C$0.21 per share versus C$102.2 million or C$0.67 per share last year. Analysts were expecting the company to report earnings of C$0.56 per share.
Fertilizer maker Agrium Inc. (AGU.TO) slipped 1 percent even after it said its second quarter net earnings grew to $860 million or $5.44 per share from $718 million or $4.54 per share a year ago. Excluding items, net earnings were $864-million or $5.47 per share. Analysts were expecting the company to report earnings of $5.22 per share.
In economic news, the U.S. Labor Department said non-farm payroll employment increased by 163,000 jobs in July following a downwardly revised increase of 64,000 jobs in June. Economists had expected employment to increase by about 100,000 jobs compared to the addition of 80,000 jobs originally reported for the previous month. Despite the job growth, the unemployment rate edged up to 8.3 percent in July from 8.2 percent in June.
Elsewhere, euro zone retail sales volume rose 0.1 percent month-on-month in June, Eurostat reported. The June increase was in contrast to a 0.1 percent fall forecast by economists. In May, retail trade increased 0.8 percent. On a yearly basis, retail sales fell 1.2 percent in June, bigger than the 0.8 percent drop logged in May. Economists had forecast a 1.9 percent drop for June.
Meanwhile, a survey report from Markit Economics revealed that the private sector in the euro zone contracted for the tenth time in the past 11 months. The final composite output index rose to 46.5 from 46.4 in June, Friday. According to flash estimate, the index remained unchanged at 46.4.
by RTT Staff Writer
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