Canadian stocks moved notably higher over the course of the trading day on Friday following the release of mixed employment data from both sides of the border.
The benchmark S&P/TSX Composite Index climbed 122.95 points or 0.7 percent to 17,520.97, reaching its best closing level since February.
The continued strength on the day came after Statistics Canada released a report showing stronger than expected job growth in the month of November.
The report said Canadian employment rose by 62,000 jobs in November following an increase of 84,000 jobs in October. Economists had expected an uptick of about 20,000 jobs.
Statistics Canada also said the unemployment rate fell to 8.5 percent in November from 8.9 percent in October, while economists had expected the rate to be unchanged.
Meanwhile, the U.S. Labor Department released a report showing much weaker than expected job growth in the month of November.
The Labor Department said non-farm payroll employment rose by 245,000 jobs in November after jumping by a downwardly revised 610,000 jobs in October. Economists had expected employment to increase by 469,000 jobs.
Continued optimism about coronavirus vaccines may be helping traders shrug off the disappointing U.S. data, as the slowdown in job growth came amid the recent surge in new cases and subsequent restrictions.
Traders may also be hoping that the weaker than expected job growth will spur lawmakers in Washington to finally pass a new fiscal stimulus bill.
Energy stocks have led the way higher, with the S&P/TSX Capped Energy Index spiking by 5.7 percent. The strength in the sector comes as the price of crude oil for January delivery climbed $0.62 to $46.26 a barrel.
Notable strength was also visible among industrial, financial and consumer discretionary stocks, although most of the other major sectors showed more modest moves.
For comments and feedback contact: editorial@rttnews.com
