CANADA STOCKS-TSX hits near six-year high after U.S. jobs data

Fri Jun 6, 2014 4:55pm EDT

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(Adds details, comments from strategist; updates prices)
    * TSX up 38.72 points, or 0.26 percent, at 14,838.90
    * Seven of 10 main index sectors advance
    * Index up 1.6 percent this week
    * Mining shares slip with bullion, copper prices

    By John Tilak
    TORONTO, June 6 (Reuters) - Canada's main stock index
reached its highest level in almost 6 years on Friday as
investors cheered a bullish U.S. jobs report and shrugged off
sluggish Canadian labor data, with energy and bank shares
driving the gains. 
    The Toronto market has climbed in each of the last six
sessions and is up nearly 9 percent this year.
    Downbeat Canadian jobs and productivity data released
indicated that the economy was still struggling to recover
fully. 
    Figures showed that U.S. employers kept up a solid pace of
hiring in May, returning employment to pre-recession level and
offering confirmation the economy has snapped back from a winter
slump. 
    "It's quite a contrast with the jobs scenario for a second
month running," said Elvis Picardo, strategist and vice
president of research at Global Securities in Vancouver.
    "Sentiment for the TSX is positive," he added. "With the
resurgence in the energy group and the advance in the
financials, things are looking good." 
    The latest wave of economic data comes on the heels of the
European Central Bank's move to cut rates to record lows, and
investors looked to process what it might mean for the U.S.
Federal Reserve's monetary stimulus program.
    "The takeaway from this data is that they are not going to
change the Fed's policy task," said Stephen Wood, chief market
strategist, North America, at Russell Investments. "We can
expect the extraordinary quantitative easing will be tapered on
schedule."
    "With the European Central Bank's announcement yesterday,
we're officially in a global monetary easing environment," he
added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 38.72 points, or 0.26 percent, at 14,838.90.
Seven of the 10 main sectors on the index were higher.
    Shares of energy producers added 0.3 percent. Suncor Energy
Inc climbed 1 percent to C$42.85, and Canadian Natural
Resources Ltd rose 1.1 percent to C$45.99.
    Financials, the index's most heavily weighted sector, were
up 0.3 percent, with Toronto Dominion Bank gaining 0.6
percent to C$54.87.
    The materials sector, which includes mining stocks, slipped
0.3 percent, reflecting weakness in the prices of gold and
copper. 
    Goldcorp Inc lost 1.3 percent to C$25.14, and Teck
Resources Ltd declined 1.8 percent to C$23.64.

 (Editing by Meredith Mazzilli and Diane Craft)
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