Source: The Canadian Press

The Toronto stock report headed for a positive open Friday amid a strong Canadian employment report for June and rising confidence for a strong global economic recovery.

The Canadian dollar was up 0.97 of a cent to 96.76 cents US after Statistics Canada reported that the economy created 93,200 jobs last month, much higher than the 20,000 that economists had expected.

The unemployment rate dropped to 7.9% from 8.1% in May.

“There’s no arguing with this strong report,” said BMO Capital Markets economist Benjamin Reitzes.

“The jobs picture clearly shows that the Canadian recovery hasn’t stalled yet, despite signs of slowing momentum in the U.S. and other economies. The handoff from public to private spending looks to be going smoothly, this strong report solidifies our call for the Bank of Canada to raise rates (a quarter point) on July 20.”

U.S. futures pointed to a flat open with the Dow industrial futures down five points to 10,087, the Nasdaq futures added a quarter point to 1,798.25 and the S&P 500 futures were ahead 0.6 of a point to 1,067.6.

Oil prices rose for a third day on indications of falling inventories in the U.S., which in turn led to hopes for higher demand.

The August crude contract on the New York Mercantile Exchange gained 20 cents to US$75.64 a barrel.

The Toronto market could also find support from the base metals sector with the September copper contract on the Nymex up three cents to US$3.04 a pound.

Bullion prices also headed higher with the August gold contract in New York $3.90 higher to US$1,200 an ounce.

The TSX advanced Thursday, racking up almost 350 points in the past three sessions as investors felt last week’s selloff of more than 4% was overdone.

The cautiously upbeat tones were helped by a U.S. report showing a larger than expected drop in the number of newly laid-off people seeking unemployment benefits, and a strong outlook from American bank State Street.

Asian markets moved higher after the Chinese central bank said monetary and fiscal policy will likewise remain accommodative in the second half of the year. The announcement eased some investors’ fears that authorities there were ready to tighten controls on the market to cool off the economy.

Investors were also pleasantly surprised by an interest rate hike in South Korea, viewing the move as a sign of confidence in the recovery.

“The rate hikes are a loud vote of confidence from Asia’s central banks that growth will continue, despite weakness in Europe,” DBS bank said in a report.

South Korea’s Kospi advanced 1.4% after the interest rate decision. The Shanghai Composite Index jumped 2.3%, Japan’s Nikkei 225 stock average rose 0.5% and Hong Kong’s Hang Seng was up 1.6%.

London’s FTSE 100 index gained 0.27%, Frankfurt’s DAX was ahead 0.49% and the Paris CAC 40 was ahead 0.47%.

In corporate news, auto parts giant Magna International Inc. (TSX:MG.A) says its shareholders will vote July 23 on a share restructuring that would see founder and chairman Frank Stronach give up control of the company in return for nearly $1 billion in stock, cash and incentives. The company had planned to conduct a vote in late June. But that was postponed after Magna was ordered by regulators to provide shareholders with more data on the plan before they could vote. Magna said it has now provided that information.

Zumiez Inc. (Nasdaq:ZUMZ) says it plans to bid for clothing and sporting goods retailer West 49 Inc. (TSX:WXX), challenging an $83-million friendly takeover of the Canadian company by Billabong International.

Cameco (TSX:CCO) said Thursday that its 260 unionized employees at its conversion facility in Port Hope, Ont., have voted to accept a new collective agreement. The facility produces uranium dioxide, used to manufacture Candu reactor fuel, and uranium hexafluoride which, after further processing, becomes the fuel for most other types of nuclear reactors.