Canadian, US Jobs Data To Set The Trend For Stocks

(RTTNews) - Canadian shares are likely to open on a cautious note on Friday with investors reacting to the the jobs data from Canada and the U.S.

Economists expect an addition of 250,000 jobs in the U.S. in the month of June. The economy had added 390,000 jobs in April.

Data on Canadian employment for the month of June is due at 8:30 AM ET.

The Canadian economy added a net 39,800 jobs in the month of May, expanding for a fourth straight month. Full time employment increased by 135,400 in May, compared to a 31,600 decrease in the previous month, while part time employment decreased to 95,800 in May of 2022, compared to a 47,100 rise in April.

The unemployment rate in Canada fell to 5.1% in May of 2022 from 5.2% in April.

The market is also likely to closely watch the developments in Japan, where former Prime Minister Shinzo Abe was assassinated during a speech in Nara.

In earnings news, MTY Food Group Inc (MTY.TO) reported a bottomline of C$28.61 million, or C$1.17 per share for the second quarter of this financial year, compared with C$23.02 million, or C$0.93 per share in the corresponding quarter last year. Second quarter revenue increased by 19.6% to C$162.51 million from C$135.85 million a year ago, the company said.

The Canadian market ended on an upbeat note on Thursday, tracking gains in global markets amid slightly easing worries about growth on hopes the Fed will likely start easing its policy tightening stance later this year.

Higher crude oil prices triggered hectic buying in the energy section, contributing substantially to market's strong close.

The benchmark S&P/TSX Composite Index ended with a strong gain of 333.51 points or 1.78% at 19,063.17, slightly off the day's high of 19,085.45.

Asian stocks closed higher on Friday amid hopes that major central banks will tackle inflation without causing a recession.

U.S. Federal Reserve governors Christopher Waller and St. Louis Fed President James Bullard both backed another big interest rate rise in July but downplayed recessionary fears.

European stocks are turning in a mixed performance on Friday after two successive days of strong gains, with investors looking ahead to the crucial U.S. non-farm payroll data for further direction.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.22 or 0.21% at $102.51 a barrel.

Gold futures are up marginally at $1,740.10 an ounce, while Silver futures are lower by $0.108 or 0.56% at $19.080 an ounce.