TSX Poised For Flat Open Amid Mixed Jobs Data - Canadian Commentary

(RTTNews) - Canadian stocks may struggle to sustain recent gains Friday amid a mixed batch of jobs data from both sides of the border. While Canadian unemployment rose, data from south of the border revealed jobs growth in the month of December. However, steady commodities may support the resource-heavy main index during the session.

The Asian markets ended mixed overnight in cautious trading, as investors digested disappointing Chinese trade data and waited for cues from the U.S. jobs report, which will have implications on the pace of the Federal Reserve's stimulus cuts. Meanwhile, the European markets are trading higher amid the key monthly jobs data from the U.S.

U.S. stock futures were pointing to a higher open after data revealed that employment in the U.S. increased by much less than expected in the month of December.

On Thursday, the S&P/TSX Composite Index extended gains for a third session, adding 14.79 points or 0.11 percent to 13,629.41.

The price of crude oil was steady near its eight month low Friday morning with the US dollar trading firm amid the release of US jobs data. Crude for February gained $1.18 to $92.84 a barrel.

The price of gold onto its previous session gains Friday morning even as the US dollar trading steady versus a basket of currencies. Barclays Bank forecasts the 2014 average gold price at $1,205 per ounce and said slower-than-expected U.S. Federal Reserve tapering, weaker equity markets and a softer dollar could help to revive gold in the short term. Gold for February added $13.60 to $1,243.00 an ounce.

In corporate news from Canada, engineering and construction group SNC-Lavalin (SNC.TO) said it, through its subsidiary, Itansuca Proyectos de Ingeniería S.A.S., received $87 million consulting services contract by Ecopetrol S.A. for oil transportation and logistics in Colombia.

In economic news from Canada, Statistics Canada said the economy shed 46,000 jobs, pushing the unemployment rate up by 0.3 percent to 7.2 percent in December. Employment growth averaged 8,500 per month in 2013, compared with 25,900 in 2012.

From south of the border, the U.S. Labor Department said said non-farm payroll employment edged up by 74,000 jobs in December following an upwardly revised increase of 241,000 jobs in November. Economists had been expecting employment to increase by about 200,000 jobs compared to the addition of 203,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dropped to 6.7 percent in December from 7.0 percent in November.

From the euro zone, Switzerland's consumer prices increased for the second consecutive month in December, the Federal Statistical Office said. Consumer prices gained 0.1 percent year-on-year in December as seen in November. The consumer price index showed a positive change in November for the first time in more than two years.

Elsewhere, the U.K.'s industrial production remained unchanged in November compared with the previous month, the latest figures from the Office for National Statistics showed. The weaker-than-expected outcome followed two successive months of improvement. Output increased by a revised 0.3 percent in October and 0.9 percent in September. Economists had forecast a 0.4 percent increase in November.