Equities in Canada’s largest market rose to begin Friday’s session as gold mining stocks surged after weaker than expected U.S. jobs data reduced expectations for an interest rate hike by the Federal Reserve.
The S&P/TSX Composite Index hiked 12.06 points to open Friday at 14,149.05
The Canadian dollar leaped 0.9 cents to 77.26 cents U.S.
Alimentation Couche-Tard Inc and Japan's Seven & i Holdings Co Ltd have submitted indicative offers to acquire U.S. convenience store retailer CST Brands.
Couche-Tard shares dipped 10 cents to $58.20.
Shareholders of Australian ports and rail freight giant Asciano Ltd voted for a A$9.1-billion ($6.6-billion) buyout by a global consortium led by Canada's Brookfield Asset Management Inc, leaving the company's future in the hands of regulators.
Brookfield shares subsided 69 cents, or 1.5%, to $45.53.
National Bank Financial raised the price target on Canadian Western Bank to $23.00 from $22.00 with an underperform rating.
Western shares slid 18 cents to $25.76.
CIBC raised the target price on Saputo to $44.00 from $40.00. Saputo shares hiked $1.39, or 3.5%, to $40.63.
CIBC then raised the target price on Trican Well Service to $2.25 from $1.75. Trican shares were unchanged at $1.75.
On the economic beat, Statistics Canada reported this morning that our exports increased 1.5% to $41.8 billion in April. Export prices were up 1.1% and volumes rose 0.5%. Imports increased 0.9% to $44.7 billion, as volumes were up 0.8% and prices edged up 0.1%.
As a result, Canada's merchandise trade deficit with the world narrowed from $3.2 billion in March to $2.9 billion in April.
ON BAYSTREET
The TSX Venture Exchange marched 8.35 points to 686.68
Seven of the 13 TSX subgroups slumped in Friday’s first hour, with health-care ailing 1.6%, information technology clicking 1.2% lower, and financials off 1.1%.
The five gainers were led by gold, shining 7.1% brighter, materials, up 4.8%, and metals and mining, spiking 4.5%. Real-estate shares were unchanged.
ON WALLSTREET
U.S. stocks traded lower Friday after a sharp miss on the May jobs report renewed some concerns about economic growth.
The Dow Jones Industrials dumped 116.28 points to begin the last day of a short week at 17,722.28. Goldman Sachs and JPMorgan Chase contributed the most to declines.
The S&P 500 faded 14.97 points at 2,090.29. Financials traded about 2% lower as the greatest decliner in the S&P 500.
The NASDAQ lost 53 points, or 1.1%, to 4,918.37
The week was shortened by the Memorial Day holiday Monday.
The May jobs report showed creation of 38,000 jobs down south, well below expectations. Analysts noted the Verizon workers' strike likely made the number lower than it would have been.
Experts said Fed funds futures showed markets were pricing in an 8% chance of a June rate hike, and 33% in July, according to RBS.
Chances for a September hike were 54%, and 90% in December, with the first full rate hike now factored in for March 2017.
The final Markit services PMI was 51.3 in May, down from 52.8 in April and well below the post-crisis average of 55.6
The Institute for Supply Management non-manufacturing came in at 52.9 for May, well below April's 55.7 print. The employment component fell to 49.7 from 53.0 in April.
Factory orders rose 1.9% in May.
Prices for the 10-year Treasury gained sharply, lowering yields to 1.71% from Thursday’s 1.8%. Treasury prices and yields move in opposite directions.
Oil prices retreated 24 cents a barrel to $48.93 U.S.
Gold prices jumped $30.57 to $1,241.57 U.S. an ounce.
