Canadian Stocks Are Up Sharply On Jobs Data -- Canadian Commentary

(RTTNews) - The Canadian stock market is climbing sharply in early trade Friday. Stronger than expected Canadian employment data and rising crude oil prices are providing a boost to the market. Comments from Federal Reserve Chair Janet Yellen have also sparked renewed risk appetite among investors.

Data from Statistics Canada showed that employment increased by 41,000 in March, beating forecast for a gain of 10,000 jobs. The economy shed 2,300 jobs in March.

The unemployment rate fell by 0.2 percentage points to 7.1 percent. Economists were looking for a jobless rate for 7.3 percent, which would have been unchanged from the February reading.

Markets in Europe are climbing Friday, rebounding from yesterday's losses. The recovery in crude oil and metal prices, coupled with strong German export data is driving the markets higher.

Markets in the United States are also trading in the green Friday morning. Remarks made by Federal Reserve Chair Janet Yellen during a panel discussion with former Fed chairs Ben Bernanke, Alan Greenspan and Paul Volcker on Thursday have provided a boost to investor sentiment with remarks

Yellen described the "tremendous progress" that the U.S. economy has made since the financial crisis and shrugged off concerns about an economic bubble. The current Fed Chief noted that the central bank would still watch the economy very carefully as it makes future decisions about interest rates.

The benchmark S&P/TSX Composite Index is up 143.88 points or 1.08 percent at 13,410.32.

On Thursday, the index closed down 81.02 points or 0.61 percent, at 13,266.44. The index scaled an intraday high of 13,327.30 and a low of 13,217.17.

The Diversified Metal and Mining Index is climbing 5.57 percent. First Quantum Minerals (FM.TO) is surging 8.30 percent and Lundin Mining (LUN.TO) is up 4.29 percent. Teck Resources (TCK-B.TO) is gaining 6.28 percent and HudBay Minerals (HBM.TO) is advancing 3.30 percent. Capstone Mining (CS.TO) is rising 5.62 percent and Sherritt International (S.TO) is adding 1.32 percent.

The Energy Index is up 3.08 percent. Crude oil prices are rising after Federal Reserve Chairwoman Janet Yellen downplayed any notion that the US economy is heading back toward recession.

Suncor Energy (SU.TO) is higher by 1.44 percent and Imperial Oil (IMO.TO) is increasing 2.12 percent. Crescent Point Energy (CPG.TO) is gaining 4.85 percent and Canadian Natural Resources (CNQ.TO) is rising 4.31 percent. Encana (ECA.TO) is climbing 3.11 percent and Enbridge (ENB.TO) is adding 1.57 percent. Pacific Exploration & Production (PRE.TO) is increasing 4.26 percent and Cenovus Energy (CVE.TO) is advancing 4.75 percent.

The heavyweight Financial Index is increasing 1.17 percent. Bank of Montreal (BMO.TO) is up 1.29 percent and Bank of Nova Scotia (BNS.TO) is rising 1.16 percent. Royal Bank of Canada (RY.TO) is higher by 1.34 percent and Canadian Imperial Bank of Commerce (CM.TO) is gaining 1.16 percent. National Bank of Canada (NA.TO) is advancing 1.34 percent and Toronto-Dominion Bank (TD.TO) is adding 0.96 percent.

The Capped Materials Index is up 1.11 percent. Silver Wheaton (SLW.TO) is gaining 0.19 percent and Agrium (AGU.TO) is rising 0.81 percent.

The Capped Industrials Index is gaining 0.89 percent. Canadian National Railway (CNR.TO) is advancing 1.10 percent and Canadian Pacific Railway (CP.TO) is climbing 2.29 percent. Air Canada (AC.TO) is up 1.97 percent and AutoCanada (ACQ.TO) is higher by 2.01 percent. Finning International (FTT.TO) is also rising 0.48 percent.

The Gold Index is advancing 0.89 percent. Goldcorp (G.TO) is rising 1.07 percent and Royal Gold (RGL.TO) is higher by 0.29 percent. Kinross Gold (K.TO) is climbing 1.61 percent and Barrick Gold (ABX.TO) is adding 2.25 percent. Eldorado Gold (ELD.TO) is increasing 5.45 percent and Yamana Gold (YRI.TO) is up 4.87 percent. IAMGOLD (IMG.TO) is advancing 0.96 percent.

The Capped Telecommunication Services Index is rising 0.39 percent. BCE (BCE.TO) is climbing 0.32 percent and TELUS (T.TO) is up 0.17 percent. Manitoba Telecom Services (MBT.TO) is increasing 0.71 percent.

Rogers Communications (RCI.B.TO) is expanding its Connected for Success program to everywhere it provides internet service. The service is available to Canada's tenants of housing agencies for $9.99/month. The stock is now up 0.40 percent.

The Capped Health Care Index is lower by 0.91 percent. Concordia Healthcare (CXR.TO) is falling 0.68 percent and Valeant Pharmaceuticals International (VRX.TO) is losing 4.50 percent. Extendicare (EXE.TO) is also slipping 0.21 percent.

The Capped Information Technology Index is losing 0.07 percent. Constellation Software (CSU.TO) is dropping 0.14 percent and Descartes Systems Group (DSG.TO) is falling 0.93 percent.

On the economic front, Canadian housing starts dropped 6.8 percent in March, to an annual rate of 204,251 units according to a report from Canada Mortgage and Housing Corp. Economists had expected housing starts to fall to 195,000 units.

German exports grew at the fastest pace in five months during February, after two months of decline, mainly driven by demand from within Europe. Exports grew a calendar-and-seasonally adjusted 1.3 percent month-on-month, which was the biggest increase since September. Economists had forecast a 0.5 percent rise.

The pace of growth in imports eased to 0.4 percent from 1.3 percent a month ago. Economists had expected a 0.3 percent drop.

Consequently, the trade surplus rose to a seasonally adjusted EUR 19.7 billion from EUR 18.7 billion in the previous month.

France's industrial production and factory output declined at the fastest pace in seven months in February, survey data from the statistical office INSEE showed Friday.

Industrial production decreased 1 percent on a monthly basis, reversing a similar size gain registered in the previous month that was revised from a 1.3 percent increase. Economists were looking for a 0.4 percent fall.

U.K. industrial production declined unexpectedly in February, the Office for National Statistics showed Friday. Industrial output fell 0.3 percent in February from January when it grew 0.2 percent. Output was expected to grow 0.1 percent.

U.K. trade in goods logged a bigger-than-expected deficit for February, data from the Office for National Statistics revealed Friday. The visible trade deficit rose to GBP 12 billion from GBP 11 billion a year ago. Economists had forecast a GBP 10.5 billion shortfall. In January, the deficit was GBP 12.2 billion.

Reflecting a sharp pullback in inventories of non-durable goods, the Commerce Department released a report on Friday showing a bigger than expected decrease in U.S. wholesale inventories in the month of February.

The Commerce Department said wholesale inventories fell by 0.5 percent in February after edging down by a revised 0.2 percent in January. Economists had expected inventories to dip by 0.2 percent compared to the 0.3 percent increase originally reported for the previous month.

In commodities, crude oil futures for May delivery are up 2.33 or 6.25 percent at $39.59 a barrel.

Natural gas for May is down 0.017 or 0.84 percent at $2.001 per million btu.

Gold futures for June are up $1.80 or 0.15 percent at $1,239.30 an ounce.

Silver for May is up $0.152 or 1.00 percent at $15.31 an ounce.