Commodities Push TSX Higher Friday Morning - Canadian Commentary

(RTTNews) - Canadian stocks were extending gains for a fourth straight session Friday morning amid a mixed batch of jobs data from both sides of the border. While Canadian unemployment rose, data from south of the border revealed that the U.S. economy recorded jobs growth in the month of December. However, steady commodities may support the resource-heavy main index during the session.

The Asian markets ended mixed overnight in cautious trading, as investors digested disappointing Chinese trade data and waited for cues from the U.S. jobs report, which will have implications on the pace of the Federal Reserve's stimulus cuts. Meanwhile, the European markets are trading higher amid the key monthly jobs data from the U.S.

The S&P/TSX Composite Index gained 81.87 points or 0.60 percent to 13,711.29, after adding nearly 150 points or 1 percent in the past three sessions.

The price of gold was holding onto its previous session gains Friday morning even as the US dollar trading steady versus a basket of currencies. Barclays Bank forecasts the 2014 average gold price at $1,205 per ounce and said slower-than-expected U.S. Federal Reserve tapering, weaker equity markets and a softer dollar could help to revive gold in the short term. Gold for February added $15.30 to $1,244.70 an ounce.

The Global Gold Index jumped nearly 4 percent, with Royal Gold (RGL.TO), Goldcorp. (G.TO), Agnico-Eagle Mines (AEM.TO) and Barrick Gold (ABX.TO) gaining around 4 percent each.

The price of crude oil was steady near its eight month low Friday morning with the US dollar trading firm amid the release of US jobs data. Crude for February gained $0.59 to $92.25 a barrel.

Suncor Energy (SU.TO) and Canadian Natural Resources (CNQ.TO) added around 2 percent each.

Among base-metals stocks, Teck Resources (TCK_B.TO) and First Quantum Minerals (FM.TO) moved up around 2 percent each.

Engineering and construction group SNC-Lavalin (SNC.TO) edged up 0.10 percent after it said it, through its subsidiary, Itansuca Proyectos de Ingeniería S.A.S., received $87 million consulting services contract by Ecopetrol S.A. for oil transportation and logistics in Colombia.

In economic news from Canada, Statistics Canada said the economy shed 46,000 jobs, pushing the unemployment rate up by 0.3 percent to 7.2 percent in December. Employment growth averaged 8,500 per month in 2013, compared with 25,900 in 2012.

From south of the border, the U.S. Labor Department said said non-farm payroll employment edged up by 74,000 jobs in December following an upwardly revised increase of 241,000 jobs in November. Economists had been expecting employment to increase by about 200,000 jobs compared to the addition of 203,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dropped to 6.7 percent in December from 7.0 percent in November.

From the euro zone, Switzerland's consumer prices increased for the second consecutive month in December, the Federal Statistical Office said. Consumer prices gained 0.1 percent year-on-year in December as seen in November. The consumer price index showed a positive change in November for the first time in more than two years.

Elsewhere, the U.K.'s industrial production remained unchanged in November compared with the previous month, the latest figures from the Office for National Statistics showed. The weaker-than-expected outcome followed two successive months of improvement. Output increased by a revised 0.3 percent in October and 0.9 percent in September. Economists had forecast a 0.4 percent increase in November.