(MENAFN- ProactiveInvestors) Canadian shares rose as the number of Americans filing new claims for unemployment benefits unexpectedly fell last week. The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.7 percent to 15044 at 12:31 p.m. in Toronto. More than two shares advanced for every stock that declined as eight out of the ten main share groups were in positive territory.
Data showed that the number of Americans filing new claims for unemployment benefits dropped last week indicating strength in the world’s biggest economy. Sentiment in Canada is often influenced by news out of the United States Canada's largest trading partner.
The energy sector the main index's second most heavily weighted group gained 2 percent even as oil Canada’s largest export fell as much as 4 percent today.
Energy (TSE:SU) Canada's largest oil sands producer rose 4 percent to C$38.74 after saying it anticipates to largely carry out operating budget cuts of C$600 million to C$800 million this year ahead of the previously projected two-year-period. Shares rose in morning trades.
(TSE:ENB) Canada's largest pipeline company added 1 percent to C$60.61.
TransCanada (TSE:TRP) rose 0.9 percent to C$54.22 after the pipeline company said it had scrapped plans to build a marine oil export terminal at Cacouna Quebec due to environmental concerns and would look for another site in the province.
U.S. crude futures were down 2.6 percent at $48.79 a barrel after falling more than $1.70 earlier. Oil dropped after global powers negotiating a nuclear deal with Iran called for a news conference following more than a week of talks in Switzerland.
The financials group which accounts for approximately 34 percent of the main measure more than any other group inched up 0.2 percent. () which has the heaviest weighting in the index rose 0.9 percent to C$76.94. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value inched up 0.3 percent to C$54.22.
The materials sub-index which includes mining shares edged down 0.2 percent as gold fell below $1200 an ounce. (TSE:G) Canada’s largest gold miner by market value fell 0.8 percent to C$23.80. (TSE:ABX) the second-largest skidded 1.4 percent to C$14.98.
(TSE:K) Canada’s third-largest producer by revenue fell 0.7 percent to C$2.95. Operations at its Maricunga mine in Chile have been temporarily suspended due to heavy rains that have caused flooding in the area and made the main road to the mine impassable.
Spot gold fell 0.6 percent to $1196.35 an ounce by 10:41 a.m. After a 2.4 percent slide in March the metal climbed 1.8 percent yesterday the biggest single-day rally since January 30. U.S. gold for June delivery slipped $11.60 an ounce to $1196.60.
Bullion retreated as the impact of a weak dollar was offset by a positive round of U.S. economic data offering hopes the labour market continues to expand even as growth has stalled ahead of tomorrow's crucial nonfarm report.
(Canada) (TSE:RET.A) jumped 6.7 percent to C$6.85 after the clothing retailer swung to a fourth-quarter profit of C$0.07 per share from a loss of C$0.04 a year earlier.
() added 0.9 percent to C$64.05 after posting a first-quarter profit of C$0.51 per share from C$0.44 and sales were up 17 percent.
The junior () was little changed at 681.43 at 12:11 p.m. in Toronto.
In economic news Canadian Finance Minister Joe Oliver promised today to deliver a balanced budget on April 21 despite the economic damage inflicted by low oil prices and pledged to avoid what he called tax-and-spend plans that could damage a fragile recovery. The finance minister normally unveils the budget in February or March ahead of the April 1 start of the fiscal year but Oliver put it off to have a better sense of where oil prices would end up and their effect on the economy and the budget.
In currency the loonie was up 0.34 of a U.S. cent at 79.54 cents US.
Elsewhere Canada's trade deficit unexpectedly shrank to C$984 million in February from C$1.48 billion in January as energy exporters benefited from stabilizing oil prices Statistics Canada data showed today. The deficit was much smaller than the C$2.00 billion shortfall analysts had expected. Statscan also revised January's deficit down sharply from an initial C$2.45 billion citing updated figures for energy exports.
In the U.S. market shares advanced as consumer and industrial companies gained before the government’s monthly jobs data. The S&P 500 (INDEXSP:.INX) rose 0.3 percent to 2066 at 11:51 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) added 0.3 percent to 17747 while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) added 0.2 percent to 4888. Most followed shares included Lumber Liquidator and .
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