Source: The Canadian Press
North American stock markets appear likely to head slightly lower Friday after a weak showing in the latest U.S. jobs data.
The U.S. Labour Department reported that the unemployment rate fell to 9.5% in June, its lowest level in nearly a year. But employers slashed 125,000 jobs last month, the most since last October, driven by census layoffs, marking the third straight disappointing report on the labour market.
The jobs survey is influential on stock markets as it provides more insight into how well the world’s largest economy is faring in its attempt to recover from the recession.
U.S. futures were mixed with the Dow Jones industrial average up 15, or 0.2%, at 9,677. Standard & Poor’s 500 index futures were down 2.40, or 0.2, at 1,024.40, while Nasdaq 100 index futures moved up 2.25, or 0.1%, at 1,730.25.
The Toronto Stock Exchange will be affected by catch-up trading following the Canada Day holiday Thursday, during which Canadian markets were closed. The TSX closed up 30.59 points to 11,294.42 on Wednesday as it wrapped up first-half trading.
Mining stocks will be closely watched in the trading session after Australia’s government retreated from a planned 40% tax on booming profits in the mining industry.
Mining companies had campaigned mightily against the proposed tax, and it was a key factor in the sudden ouster of Kevin Rudd as prime minister after he refused to negotiate. Friday’s announcement from new Prime Minister Julia Gillard effectively removes the issue from the political agenda.
The Canadian dollar opened at 94.30 cents US, up 0.37 of a cent from Wednesday’s close, as the Bank of Canada did not monitor electronic trading during the holiday Thursday.
In Canadian corporate news, Lions Gate Entertainment Corp. (NYSE:LGF) has adopted a shareholder rights plan or “poison pill” to fend off unwanted takeovers, a day after billionaire activist investor Carl Icahn revealed he owns about 33.9% of film producer and distributor’s stock.
The company is based in Vancouver, has operations in the United States and trades its stock on the New York Stock Exchange.