Toronto's main stock index was set to open higher on Friday, as news that U.S. employment growth picked up speed in November boosted investor optimism and commodity prices, offsetting unfavourable tidings north of the border.
Among stocks to watch here in Canada, Royal Bank of Canada said its fourth-quarter profit from continuing operations rose 19% due to strong growth in mortgages and business loans
Bank of Nova Scotia said its Q4 profit rose 10.7% as stronger wealth management and international banking income overshadowed weaker capital markets.
Yukon-Nevada Gold Corp. received a letter from the Federal Mine Safety and Health Administration saying its Jerritt Canyon mill is being put on safety-watch list.
Canadian investors' day may also be overshadowed by news that Research in Motion Ltd. will take a $485-million U.S. hit in its third quarter because of the weak launch of its PlayBook tablet and won't meet full-year earnings targets.
RIM shares fell 3.8% in premarket trading on the NASDAQ, minutes after the news.
What’s more, the jobs situation in this country provides nothing to sing about. Statistics Canada came out with figures this morning saying the country lost 18,600 jobs last month, with the unemployment rate hiking one-10th of a point to 7.4%.
The Canadian dollar traded at 98.78 U.S. cents.
Stateside, Dow futures gained 144 points, or 1.2%, while S&P 500 futures rose 16.8 points, within an hour of the open.
In contrast to Canadian frowns, the American job front was all smiles Friday morning. The U.S. economy gained 120,000 jobs in November, while Uncle Sam’s unemployment rate fell to 8.6% -- the lowest since March 2009.
Overseas, German Chancellor Angela Merkel underlined the need to take urgent steps to restore market confidence and took a tough stance against overspending and running up debt -- and the markets lapped it up.
After Merkel delivered a highly anticipated speech to Germany's parliament, Britain's FTSE 100 rose 1.6%, France's CAC 40 gained 1.9% and Germany's DAX climbed 1.7%.
Merkel said that euro-zone financial regulations had been violated too frequently and that European Union treaty changes and stricter financial controls were needed. She also reiterated her objection to euro bonds, debt jointly backed by several euro zone countries.
She and French President Nicolas Sarkozy are due to meet Monday to discuss the treaty changes that can restore confidence in the euro's future. The talks will culminate in a Dec. 9 summit of E.U. leaders.
On Thursday, the head of the European Central Bank indicated that the bank stood ready to act more aggressively to fight Europe’s debt crisis.
In markets already shuttered for the weekend, Japan's Nikkei rose 0.5% and Hong Kong's Hang Seng edged 0.2% higher.
Gold prices perked $14.60 to $1,754.40 U.S. an ounce.
Copper gained almost 2% and was on track for its first weekly gain in five weeks. It traded at $7,925 U.S. a tonne.
Crude oil traded 0.9% higher at $101.04 U.S. a barrel.
