Toronto stock market headed for a weak open Friday as traders take in data showing a steep drop in Canadian employment last month while waiting for the release of the U.S. non-farm payrolls report for October.
The Canadian dollar was down 0.94 of a cent to 98.26 cents US after Statistics Canada reported that the economy shed 54,000 jobs overall, most of them in the manufacturing and construction trades.
Economy sheds 54,000 jobs in October
Economists had expected a moderate increase in employment of 15,000 after September’s surprising 61,000 pick-up, although that was somewhat inflated by returning education workers.
The jobless rate came in at 7.3%, 0.2 percentage points higher than September.
U.S. futures were in the red prior to the release of the American employment figures with the Dow Jones industrial futures down nine points to 11,967, the Nasdaq futures were down 6.8 points to 2,354.2 while the S&P 500 futures lost two points to 1,253.7.
Expectations were modest for October employment in the U.S. Economists reckon the economy created about 95,000 jobs, down from 103,000 in September.
At week’s end, markets were relatively calm on relief that Greece will not hold a referendum on its latest rescue deal.
Markets were volatile earlier this week after Greek prime minister George Papandreou stunned markets by calling the referendum. His plan increased investor fears of a disorderly Greek debt default and the country’s possible exit from the eurozone.
However, uncertainties over Greece remain as Papandreou’s government faces a confidence vote in Parliament later in the day.
Commodity prices were mainly higher with the December crude contract on the New York Mercantile Exchange up 61 cents to US$94.68 a barrel.
The December copper contract on the Nymex rose three cents to US$3.62 a pound.
Bullion prices dipped with the December contract down $4.30 to US$1,760.80 an ounce.
European markets were mixed with London’s FTSE 100 index up 0.68%, Frankfurt’s DAX declined 0.47% and the Paris CAC 40 added 0.12%.
Earlier in Asia, stocks ended a four-day losing streak following Thursday’s recovery in Europe and the U.S. Japan’s Nikkei 225 index rose 1.9%, Hong Kong’s Hang Seng jumped 3.1% and Korea’s Kospi gained 3.1%.
Mainland Chinese shares tracked advances in the region, with the benchmark Shanghai Composite Index adding 0.8% while the Shenzhen Composite Index gained 0.6%.
In earnings news, Air Canada (TSX:AC.B) said operating profit dropped nearly 12% in the third quarter to $270 million as the airline grappled with the high price of fuel. Profit came in at 55 cents a share, beating analyst estimates by seven cents.
Centerra Gold Inc. (TSX:CG) reported a five-fold increase in third-quarter profits on Thursday, citing an increase in sales and higher realized prices for gold for the big improvement. The Toronto-based miner earned US$83.8 million or 35 cents per share while revenue increased to US$278.4 million from $119.9 million in the same period last year.
Canadian Real Estate Investment Trust (TSX:REF.UN) reported its net profit rose nearly 10% to $11.3 million in the latest quarter as the company benefited from property acquisitions.
In other corporate developments, Jon Corzine is stepping down from running the securities firm that collapsed after his disastrous bets on European debt. The firm, MF Global, said Friday that Corzine has resigned as chairman and CEO. MF Global filed for bankruptcy protection on Monday after its bets on European debt spooked investors and trading partners.