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Canadian Stocks Are Down After Weak Jobs Report - Canadian Commentary

The Canadian stock market is down in early trade Friday after today's employment report came in weaker than expected. Data from Statistics Canada showed that Canadian employment fell by 7,500 jobs in May, defying expectations for an addition of 22,000 jobs. This follows a decline of 1,100 jobs in April.

The unemployment rate held steady at 5.8 percent, matching forecasts.

The majority of the European markets are trading in the red Friday. Financials, mining and energy stocks are coming under selling pressure as investors fret about trade fiction, rising interest rates and political risks.

Markets on Wall Street are dipping in early trade Friday. Traders are in a cautious mood ahead of the G7 summit in Canada today. U.S. President Trump lashed out at Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron in posts on Twitter ahead of the summit.

The benchmark S&P/TSX Composite Index is down 11.66 points or 0.07 percent at 16,181.12.

On Thursday, the index closed up by 8.85 points or 0.05 percent, at 16,192.78. The index scaled an intraday high of 16,249.17 and a low of 16,149.36.

The Capped Healthcare Index is lower by 0.49 percent. Extendicare (EXE.TO) is falling 0.13 percent and ProMetic Life Sciences (PLI.TO) is losing 1.33 percent.

The Energy Index is falling 0.26 percent. Crude oil prices are little changed Friday morning amid conflicting reports on OPEC's production outlook.

Reuters reports that Iran is upset with the U.S. request for Saudi Arabia to raise oil production drastically to offset a drop in Iranian exports. Tehran tells Reuters that OPEC will not comply with such a request.

However, CNBC reports: "Saudi Arabia and Russia are reportedly ready to increase oil output while others like Iran and Iraq are against such a move."

Cenovus Energy (CVE.TO) is weakening by 0.23 percent and Encana (ECA.TO) is falling 0.62 percent. Crescent Point Energy (CPG.TO) is losing 0.89 percent and Husky Energy (HSE.TO) is declining 1.58 percent. Imperial Oil (IMO.TO) is decreasing 0.54 percent and Enbridge (ENB.TO) is lower by 0.57 percent.

The Capped Telecommunication Services Index is down 0.32 percent. Rogers Communications (RCI-B.TO) is falling 0.05 percent and BCE (BCE.TO) is losing 0.04 percent. TELUS (T.TO) is also dipping 0.04 percent.

The Capped Materials Index is down 0.20 percent. Franco-Nevada (FNV.TO) is losing 0.62 percent and Nutrien (NTR.TO) is dropping 0.32 percent.

The Gold Index is decreasing 0.14 percent. Gold prices are flat Friday morning ahead of what may be a contentious G7 summit.

Kinross Gold (K.TO) is falling 0.43 percent and B2Gold (BTO.TO) is losing 0.29 percent.

The heavyweight Financial Index is decreasing 0.08 percent. Toronto-Dominion Bank (TD.TO) is losing 0.30 percent and Royal Bank of Canada (RY.TO) is weakening by 0.07 percent. National Bank of Canada (NA.TO) is decreasing 0.06 percent.

Bombardier (BBD-B.TO) is dropping 1.22 percent. The company's Toronto union could strike June 23 if no deal reached on a new contract. Meanwhile, Airbus SE sealed its control of Bombardier Inc.'s C Series.

On the economic front, a report from the Canadian Mortgage and Housing Corp. this morning showed that Canadian housing starts fell to a seasonally adjusted annualized rate of 195,613 units in May. Economists had expected an increase to 218,000 units.

China's exports logged a double-digit growth in May despite ongoing trade dispute with the U.S., data from General Administration of Customs revealed Friday.

Exports climbed 12.6 percent year-over-year in May, faster than the expected growth of 11.1 percent.

At the same time, imports increased sharply by 26 percent, exceeding expectations for an annual 18.2 percent rise.

As a result, the trade surplus totaled $24.92 billion in May, which was well below the expected level of $33.8 billion. China's trade surplus with the United States increased to $24.6 billion.

Germany's exports dropped in April, while imports expanded after falling for three straight months, figures from Destatis showed Friday.

Exports fell by seasonally adjusted 0.3 percent month-on-month, in contrast to March's 1.8 percent increase. The 0.3 percent decline came in line with expectations.

Meanwhile, imports advanced 2.2 percent, reversing a 0.2 percent fall in March. Economists had forecast a 0.6 percent rise.

As a result, the trade surplus decreased to EUR 19.4 billion from EUR 21.6 billion in the previous month.

Germany's labor costs growth quickened in the three months ended March, after easing in the previous four quarters, figures from Destatis showed Friday. Labor costs per hour worked consisting of gross earnings and non-wage costs rose 2.3 percent year-over-year in the first quarter, faster than the 1.5 percent climb in the fourth quarter.

Germany's industrial production decreased unexpectedly in April, data from Destatis revealed Friday. Industrial output dropped 1 percent month-on-month in April, reversing a revised 1.7 percent rise in March. Output was forecast to grow 0.3 percent.

France's industrial production declined for the second straight month in April on weak mining activity, the statistical office Insee showed Friday. Industrial output dropped unexpectedly by 0.5 percent month-on-month in April, following March's 0.4 percent decrease. Output was forecast to grow 0.3 percent.

In commodities, crude oil futures for July delivery are up 0.10 or 0.15 percent at $66.05 a barrel.

Natural gas for July is down 0.037 or 1.26 percent at $2.893 per million btu.

Gold futures for August are up 0.50 or 0.04percent at $1,303.50 an ounce.

Silver for July is down 0.035 or 0.21 percent at $16.78 an ounce.

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