CANADA STOCKS-TSX stung by weak U.S. jobs data as oils drop

Fri Jul 8, 2011 4:36pm EDT

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 * TSX falls 0.26 percent to 13,371.70
 * Seven index sectors ease, led by energy
 * Canada's bright jobs data clouded by U.S. gloom
 (Updates to close)
 TORONTO, July 8 (Reuters) - Toronto's main stock market
index fell on Friday as disappointing U.S. jobs data for June
hit sentiment, though the decline was tempered by hopes the
setback to economic recovery was temporary.
 Figures showed U.S. employment growth ground to a halt in
June, sending stock market investors scurrying to sidelines to
gauge their next moves.
 "That definitely took some wind out of the sails of this
rally we've had the last couple of weeks. It seems the market
is pretty shallow," said Youssef Zohny, portfolio manager at
Van Arbor Asset Management.
 "Expectations for the U.S. economy over the last month or
so have been fairly low so it wasn't too surprising to see weak
jobs numbers," he said. "Most investors are taking that in
stride and really looking towards the second half of the year
to hopefully see some improvement in the U.S. economy."
 The U.S. data contrasted sharply with Canadian employment
figures for June, which showed 28,400 jobs were created,
compared with the 15,000 expected by markets. The Canadian
unemployment rate was unchanged at 7.4 percent.
 [ID:nOAT004829] [ID:nN1E767019]
 The index's energy group was the main sector drag, falling
0.81 percent as the price of U.S. crude oil lost more than 2
percent as markets reacted to the bleaker U.S. economic
outlook.
 Canadian Natural Resources (CNQ.TO), down 3.14 percent at
C$40.36, was the biggest overall decliner.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE fell 34.30 points, or 0.26 percent, to close at
13,371.70. Seven of its 10 main groups were lower.
 Trading volume was lower than usual, with about 128 million
shares changing hands, not much more than on Monday, when U.S.
markets were closed for the Independence Day holiday.
 ($1=$0.96 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)

















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