TSX rallies as U.S. jobs data lifts commodities


05/08/2012 10:02 AST  Reuters

Canada's main stock index was headed for its largest one-day gain in a month on Friday as financial and resource shares were boosted after the U.S. economy added more jobs than expected in July.

U.S. non-farm payrolls rose 163,000 last month, the Labor Department said, beating economists' expectations for a 100,000 gain and offering hope of improvement in the world's largest economy.

The jobless rate, however, inched up to 8.3 percent from 8.2 percent in June.

"It's a bullish report and it furthers the Fed's case that they remain in the back seat waiting to see if there's some kind of further deterioration," said Michael A. Gayed, chief investment strategist at Pension Partners LLC. "If you look at (U.S.) bond yields rising, it's coinciding with commodities."

All of Canada's 10 main sectors were higher, led by the powerful energy complex, which rose more than 2.5 percent as oil prices jumped.

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