Canadian stocks rose, trimming a second weekly decline, as signs that tensions are easing in Ukraine outweighed concern over crises in the Middle East and data showing national employers added fewer jobs than forecast.
Magna International Inc. rallied 6.5 percent, the most in more than two years, after boosting its sales outlook. SNC-Lavalin Group Inc. dropped 2.8 percent after second-quarter profit missed analysts’ estimates on declining revenue. Enerflex Ltd. (EFX), an oilfield services company, jumped 10 percent as more bookings helped it report better-than-expected profit.
Stock gains accelerated in afternoon trading as Russia’s Defense Ministry said warplanes had ended drills in the region near Ukraine while RIA Novosti earlier reported that Russia offered to mediate between the government in Ukraine and the separatists that it’s battling.
U.S. President Barack Obama approved airstrikes in Iraq, and rocket attacks marked the end of a cease-fire between Israel and Hamas. Investors have been watching developments in geopolitical crises for signs of slowing global economic growth.
Canada added 200 jobs after a decline of 9,400 in May, while the country’s unemployment rate fell to 7.0 percent as people left the labor market, Statistics Canada said today in Ottawa. Economists had projected a 20,000 job increase according to median forecasts. The economy has alternated monthly jobs gains and losses for nine straight months.
Magna rose 6.5 percent to C$122.24 after reporting higher profit and sales than analysts had forecast. The auto parts maker also increased its 2014 sales guidance to $35.6 billion to $37.3 billion, from $34.9 billion to $36.6 billion.
Linamar Corp. rallied 5.2 percent to C$64.23 and Martinrea International Inc. added 5.6 percent to C$14.09 to pace gains among consumer discretionary stocks. Six of 10 industries in the S&P/TSX advanced.
Avigilon Corp. (AVO), a security solutions provider, sank 11 percent to C$22.07, the worst decline in three months. The company reported earnings that fell short of estimates and expenses for sales, marketing and research and development expenses increased.
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