Canadian Stocks Rise as U.S. Jobs Data Spur Rates Speculation

Updated on

Canadian stocks rose, after markets re-opened after a holiday, as the U.S. added jobs in June and investors speculated when the Federal Reserve will raise interest rates.

Valeant Pharmaceuticals International Inc., the third-largest stock by market cap in the benchmark index, climbed 3.3 percent to pace gains among health-care companies. Suncor Energy Inc., the nation’s largest oil producer, rallied 0.8 percent even as crude erased a gain. Railway operators Canadian National Railway Co. and Canadian Pacific Railway Ltd. paced an advance in industrial shares.

The Standard & Poor’s/TSX Composite Index rose 84.66 points, or 0.6 percent, to 14,637.99 at 4 p.m. in Toronto. Canadian markets were closed yesterday for the Canada Day holiday. U.S. markets will be closed tomorrow for a holiday.

Valeant increased 3.3 percent and Concordia Healthcare Corp. gained 1.9 percent as health-care companies rose 2.9 percent as a group, the most in the S&P/TSX. Nine of 10 industries advanced on trading volume 7.3 percent higher than the 30-day average today.

The U.S. economy added 223,000 jobs in June, following a 254,000 increase last month that was revised downward, a Labor Department report showed Thursday in Washington. The jobless rate fell to a seven-year low of 5.3 percent as more people left the work force, while wages stagnated.

U.S. Federal Reserve policy makers have been watching the labor market as they consider raising the benchmark interest rate this year from near zero.

“The confirmation of labor-market health the Fed has been looking for will have to wait at least one more month,” Royce Mendes, an economist at CIBC World Markets, said in a report. “With markets already pushing back the timing of the expected first rate hike because of uncertainty surrounding Greece, today’s data will likely drive expectations even further out.”

Yanis Varoufakis said Greece won’t “extend and pretend” that it can pay its debts, vowing to quit as finance minister if voters don’t support him in Sunday’s referendum.

Suncor advanced 0.8 percent and Bellatrix Exploration Ltd. added 1.4 percent. Oil for August delivery slipped 3 cents to $56.93 a barrel in New York.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE