(MENAFN- ProactiveInvestors) Canadian shares retreated as a mixed U.S. payrolls report and a suprise decrease in Canadian jobs fueled declines in financial shares. The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) retreated 0.6 percent to 14368.97 at 12:34 p.m. in Toronto. Five shares declined for every three stocks that advanced as eight out of the ten main industries were down.
The U.S. data showed nonfarm payrolls increased in December and the unemployment rate fell to 6-1/2 year low but a drop in wages left investors fretting. Sentiment in Canada is often influenced by news out of the United States Canada's largest trading partner.
In Canada data showed lost jobs for a second straight month. Payrolls decreased by 4300 jobs following a drop of 10700 in November. Economists surveyed by Bloomberg forecast a gain of 15000 last month.
Canada’s unemployment rate was 6.6 percent matching the previous month while the labor-force participation rate fell to 65.9 percent the lowest since 2001 as more people dropped out of the job market.
The financials group which accounts for approximately 35 percent of the main measure more than any other group fell 1 percent. () which has the heaviest weighting in the index lost 1.4 percent to C$77.70.
Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value surrendered 1.1 percent to C$52.67.
The energy sector the main index's second most heavily weighted group was down 0.1 percent as oil dropped to the lowest level in more than five years. Energy (TSE:SU) Canada's largest oil sands producer skidded 0.3 percent to C$35.88. () the country's second-largest oil and gas company was up 0.1 percent at C$33.14.
TransCanada (TSE:TRP) the country’s second-biggest pipeline operator rose 1.6 percent after the Nebraska Supreme Court approved a plan for the company’s proposed Keystone XL pipeline to cross the state.
West Texas Intermediate for February delivery slid 2.9 percent to $47.39 a barrel at 11:30 a.m. on the New York Mercantile Exchange. Brent for February settlement decreased 3.5 percent to $49.16 a barrel on the London-based ICE Futures Europe exchange. Oil fell on growing evidence that OPEC won’t pare output to reduce a global supply surplus.
The materials sub-index which includes mining shares advanced 0.8 percent as gold futures rose. (TSE:ABX) gained 0.5 percent to C$12.85. (TSE:G) advanced 3.6 percent to C$24.22.
Gold futures for February delivery gained 0.6 percent to $1216 an ounce at 11:51 a.m. on the Comex in New York bringing the week’s gains to 2.5 percent.
() fell 5.3 percent to C$3.91 after the world's third-biggest aircraft maker said its chief commercial-aircraft salesman has left the company a blow to efforts to gain market traction with its new CSeries jetliner.
() rose 1.9 percent to C$22.50 after dropping to as low as C$21.90. The company said it will cease production at a leased Massachusetts manufacturing plant to reduce capacity across its U.S. facilities and cut costs. The closure of the plant which employs 50 full-time workers will result in a charge of about $800000 to write down equipment.
The junior () fell 0.8 percent to 681.99 at 12:22 p.m. in Toronto.
In currency Canada’s dollar reached a 5 1/2-year low after employment unexpectedly shrank last month. The loonie depreciated 0.1 percent to C$1.1846 per U.S. dollar at 10:36 a.m. in Toronto. It touched C$1.1890 the weakest level since May 2009. One Canadian dollar buys 84.42 U.S. cents.
Elsewhere in the economy builders began construction on the lowest number of homes in Canada in 10 months amid a collapse in crude prices. Canada Mortgage & Housing Corp. said in a statement today that the pace of housing starts declined to 180560 units last month the lowest since March and down 6.5 percent from November. The figure refers to the housing agency’s seasonally adjusted annual rate. Economists had been expecting a rate of 192000 units according to the median of a Bloomberg survey with 15 estimates.
In the U.S. market shares dropped as American wages fell amid growing concern that Europe’s stimulus plan might not be sufficient. The S&P 500 (INDEXSP:.INX) slipped 0.9 percent to 2043 at 11:40 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) lost 1 percent to 17728 and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) slipped 0.8 percent to 4697. Most followed shares included Macy's Gap Ralph Lauren Container Store Five Below and .
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