Bay Street Seen Opening On Mixed Note; Canadian, U.S. Jobs Data To Set The Tone

(RTTNews) - A mixed trend in commodity prices and somewhat subdued European markets point to a cautious start for the Canadian market on Friday.

However, Canadian and U.S. jobs data for the month of December, due ahead of the opening bell, are likely to set the trend for the markets on either side of the border on Friday.

The ADP data released on Thursday showed a bigger than expected increase in private sector jobs growth in the month of December, raising the possibility of more interest rate hikes by the Federal Reserve.

Economists currently expect non-farm payroll employment to jump by 200,000 jobs in December after surging by 263,000 jobs in November, while the unemployment rate is expected to hold at 3.7%.

Canada's jobs data for the month of December is due at 8:30 AM ET. The Canadian economy added 10,100 jobs in November, more than two times the expected addition. The unemployment rate in Canada dropped slightly to 5.1% in November from the 5.2% decline seen a month earlier.

The Canadian market ended on a weak note on Thursday after languishing in the red right through the day's session, as rate hike concerns and the possible adverse impact of rising interest rates on economic growth weighed on stocks.

The benchmark S&P/TSX Composite Index, which dropped to a low of 19,386.71, ended the session with a loss of 81.99 points or 0.42% at 19,506.84.

Asian stocks rose broadly on Friday amid optimism surrounding China's reopening and expectations of more stimulus to support domestic demand.

Data showing continued strength in the U.S. labor market added to economic optimism but fed fears of more policy tightening.

European stocks are modestly higher Friday afternoon with investors making cautious moves as they await the crucial U.S. jobs data for directional clues.

In economic news from Europe, the UK construction sector contracted for the first time in four months in December. German factory orders fell the most in over a year due to weak demand.

Eurozone inflation slowed to a four-month low in December after energy price growth eased for the second straight month. Retail sales in the Eurozone rose 0.8% in November, while Eurozone economic confidence strengthened to a four-mkonth high in December.

In commodities trading, West Texas Intermediate Crude oil futures for February are down $0.25 or 0.34% at $73.42 a barrel.

Gold futures are up $1.90 or 0.11% at $1,842.50 an ounce, while Silver futures are gaining $0.201 or 0.86% at $23.625 an ounce.