Stock markets to head higher

The dollar jumped 0.92 of a cent to 96.1 cents US as Statistics Canada reported that the economy created 59,000 positions last month. But the growth was mainly for part-time employment. The unemployment rate fell to 7.1 per cent in August from 7.2 per cent the previous month.

The consensus had called for the Canadian economy to have created about 20,000 jobs in August.

The spike in the loonie came as the American dollar backed off after the U.S. Labor Department reported jobs growth of 169,000 last month, narrowly missing expectations of about 175,000 jobs. The jobless rate was 7.3 per cent, down from 7.4 per cent.

U.S. futures were higher as the Dow Jones industrial futures rose 55 points to 14,972, the Nasdaq futures were up 8.2 points to 3,136.2 and the S&P 500 futures were ahead 5.5 points to 1,658.5.

The consensus had called for the American economy to have cranked out about 175,000 jobs in August, although recent strong data on declining jobless insurance claims has led some to expect the gains could have been as high as 200,000.

The Fed has indicated it could start winding up its US$85 billion of bond purchases as early as this month if the economy shows sufficient strength. The prospect of the Fed tapering those asset purchases has unnerved some investors as the stimulus has kept rates low and channelled lots of money into equity markets around the globe.

Commodity prices were higher, with the October crude contract on the New York Mercantile Exchange ahead $1.08 to US$109.45 a barrel.

December copper rose three cents to US$3.28 a pound,.

Gold prices advanced after the release of the jobs data with the December bullion contract up $14.50 to US$1,387.50 an ounce.

Meanwhile, jitters remained over Syria’s civil war and whether the U.S. would launch a punitive strike against President Bashar Assad’s regime for a chemical attack against civilians in suburban Damascus last month. But at the G-20 summit of world leaders in Russia this week, President Barack Obama failed to garner much support for military intervention.

A congressional vote on such a strike could take place as early as next week.

On the corporate front, Com Dev International Ltd. (TSX:CDV), a supplier of subsystems and other components to major satellite contractors says net income attributable to shareholders in the latest quarter was $5.1 million or seven cents per share. That was up from $4 million or five cents per share in the same year-earlier period even as revenue slipped to $54.2 million from $54.5 million.

Calfrac Well Services Ltd. (TSX:CFW) is spending US$147 million to buy Mission Well Services LLC, a privately held hydraulic fracturing and coiled tubing services provider focused in Texas.

The Competition Bureau of Canada has given fertilizer producer Agrium Inc. (TSX:AGU) the green light to buy a large chunk of Viterra Inc.’s retail agri-products business from Glencore Xstrata PLC. The agreement will see Agrium divest seven retail stores and nine anhydrous ammonia businesses. Agrium will also supply anhydrous ammonia to any purchaser of the divested assets for up to four years at prices that will not exceed what is charged at its retail outlets in those two provinces.

European bourses improved following the U.S. jobs report with London’s FTSE 100 index up 0.34 per cent, Frankfurt’s DAX was ahead 0.32 per cent, while the Paris CAC 40 rose 0.55 per cent.

Earlier, in Asia, Japan’s Nikkei 225 fell on profit-taking after four sessions of gains. The benchmark index closed down 1.5 per cent while South Korea’s Kospi rose 0.2 per cent and Australia’s S&P/ASX 200 rose slightly.

Stocks in Hong Kong and mainland China have posted gains in recent days after Chinese manufacturing data showed the slowdown in the world’s No. 2 economy is stabilizing.

Hong Kong’s Hang Seng added 0.1 per cent, the Shanghai index advanced 0.8 per cent and the smaller Shenzhen Composite Index rose 0.5 per cent.