CANADA STOCKS-TSX rises on strong jobs data, bank shares gain
* TSX up 0.6 percent, or 83.71 points, at 13,284.11 * Banks stocks lead index higher * Canada adds 21,600 jobs in November By Leah Schnurr TORONTO, Dec 6 (Reuters) - Canada's main stock index rose on Friday, recovering from a six-week low as stronger-than-expected jobs reports on both sides of the U.S. border bolstered expectations that the economic recovery has momentum. Bank stocks, which had weakened on Thursday following mixed quarterly results from three big lenders, led the push higher. Royal Bank of Canada, up 1.6 percent at $69.29, played the biggest role of any stock in leading the index up. Bank of Nova Scotia also gained after it reported a 12 percent rise in quarterly profit on Friday, helped by strength in its Canadian retail business. Its earnings per share, however, were slightly below the average analyst estimate. Shares of Scotiabank rose 0.7 percent to $63.78, lagging gains of more than 1 percent made by Royal, Bank of Montreal and Canadian Imperial Bank of Commerce. Overall, the banking sector was up 1.1 percent. The day's economic data helped give the market a positive tone. Canada added 21,600 jobs last month, far more than the 12,000 economists had forecast, while the unemployment rate held at 6.9 percent. The United States created 203,000 jobs in November, also more than expected. "Just as a general rule, I think we are on a trajectory that's more positive than negative, and I think that's what you're seeing globally," said Paul Harris, portfolio manager at Avenue Investment Management in Toronto. The Toronto Stock Exchange's S&P/TSX composite index was up 0.6 percent, or 83.71 points, at 13,284.11. The U.S. jobs report increased expectations that the Federal Reserve will soon start to reduce, or taper, economic stimulus. Although markets have been reacting negatively to that prospect, investors on Friday were more encouraged by the stronger economic picture. "Tapering will create a short-term volatility and may cause the stock market to go down, but I think in the long run that's good, because you will get a pullback and people should be buyers of the stock market then," Harris said. Shares of gold miners and energy companies were higher, alongside resource prices. Gold miners rose 1 percent as gold futures climbed to $1,234.60 an ounce, while the energy sector edged up 0.2 percent along with a rise in Brent crude, which was up 44 cents at $111.42 a barrel. On the downside, miner Centerra Gold dropped 2.1 percent to $3.66 after news Kyrgyzstan is suing the company for $304 million over what the government says is ecological damage.
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