Equities in Canada’s biggest market opened higher on Thursday, as energy stocks tracked gains in oil prices, with sentiment bolstered by data that showed a record pace of U.S. jobs growth in June.
The S&P/TSX Composite Index leaped 251.78 points, or 1.6%, to open Thursday at 15,767.
The Canadian dollar was unchanged at 73.62 cents U.S.
Canadian markets were shuttered Wednesday for Canada Day.
A modernized U.S.-Mexico-Canada trade pact took effect on Wednesday, ensuring continuity for manufacturers and agriculture, but the threat of disputes is exposing cracks in what was meant to be a stronger North American fortress of competitiveness.
A Michigan circuit court ruled Wednesday that Enbridge can restart operations at the west leg of its Line 5 pipeline while the damaged east leg remains shut. Enbridge shares climbed 74 cents, or 1.8%, to $42.02.
Credit Suisse raised the price target on Canadian Natural Resources to $32.00 from $29.00. Natural Resources shares climbed 72 cents, or 3.1%, to $24.27.
Scotiabank cuts target price on Cineplex to $13.00 from $15.00. Cineplex shares gathered 18 cents, or 2.2%, to $8.22.
Economically speaking, Statistics Canada reported exports increased 6.7% in May. Meanwhile, imports decreased 3.9%. As a result, Canada's merchandise trade deficit with the world narrowed from $4.3 billion in April to $677 million in May.
Also, the Markit Canada Manufacturing Purchasing Managers Index registered 47.8 in June, up from 40.6 in May and well above the survey-record low seen during April (33.0), but below below the neutral 50.0 threshold.
ON BAYSTREET
The TSX Venture Exchange gained 3.35 points to 623.48.
All but two of the 12 TSX subgroups gained ground in the first hour, with with information technology sprinting 3.8%, real-estate up 2.9%, and energy soaring 1.8%.
The two laggards were gold, down 1.4%, and materials, off 0.8%.
ON WALLSTREET
Stocks rose sharply on Thursday as investors cheered a bigger-than-expected increase in jobs in June as the economy tries to claws back from the coronavirus shutdown.
The Dow Jones Industrials traveled higher by 449.5 points, or 1.8%, to begin Thursday at 26,184.47.
The S&P 500 gained 49.08 points, or 1.6%, to 3,164.94.
The NASDAQ Composite hiked 151.12 points, or 1.5%, to 10,305.75, a new record high.
The moves Thursday followed the market’s first trading day in the third quarter. Both the S&P 500 and NASDAQ Composite gained during the regular session on Wednesday, with the latter jumping more than 1% to an all-time high.
Boeing contributed to the gains, rising more than 3% after the airplane maker completed re-certification flights for its grounded 737 Max jet.
Stocks that would benefit from an economic reopening also rose. Cruise operators Carnival, Norwegian Cruise Line and Royal Caribbean all gained at least 3.6%. United Airlines and Delta each traded more than 2% higher. American Airlines progressed 3.3%, and Southwest advanced 2.8%.
The government’s June jobs report showed 4.8 million jobs were created. Economists were expecting 2.9 million jobs were created. The unemployment rate fell to 11.1% from 13.3% in May. Economists were expecting a rate of 12.4%.
Last month, economists forecast a loss of 8 million jobs in May and the economy gained 2.5 million payrolls instead.
Meanwhile, weekly jobless claims data was released Thursday morning.
The U.S. Labor Department said Thursday that initial jobless claims stateside rose by 1.427 million in the week ending June 27. Economists expected initial U.S. jobless claims to rise by another 1.38 million, down from 1.48 million the week earlier.
U.S. markets will be closed on Friday for the July Fourth holiday.
Prices for the 10-Year Treasury slumped, raising yields to 0.70% from Wednesday’s 0.68%. Treasury prices and yields move in opposite directions.
Oil prices took on 67 cents to $40.49 U.S. a barrel.
Gold prices added four dollars to $1,793.90 U.S. an ounce.
