Canadian stocks ended higher for a third straight session on Thursday, as the market resumed trading after being closed for Canada Day holiday on Wednesday. Investors now await the outcome of Sunday's referendum in Greece, even as Canadian stocks bucked the declining global trend, with U.S. markets in the red after some disappointing jobs data.
Nonetheless, the upside was somewhat capped by weakness in mining, gold and financial stocks.
The majority of the European markets ended in negative territory, giving back early gains. Investors turned cautious ahead of the upcoming Greek referendum on Sunday, with conflicting opinion polls adding to the ambiguity as to whether voters will endorse the austerity measures proposed by the country's international creditors or reject the terms.
German Chancellor Angela Merkel and Eurogroup President Jeroen Dijsselbloem have both said further negotiations will have to wait until after the referendum.
Markets in the United States ended mostly in the red, after job growth in June came in weaker than expected this morning, but the U.S. unemployment rate dropped to a 7-year low. Traders were also reluctant to make any significant moves going into the long weekend, ahead of the upcoming Greek referendum on Sunday.
While the data was largely overshadowed by the release of the monthly jobs report, the Labor Department also released a report on Thursday showing an unexpected increase in initial jobless claims in the week ended June 27.
The benchmark S&P/TSX Composite Index closed Thursday at 14,637.99, up 84.66 points or 0.58 percent. The index scaled an intraday high of 14,663.41 and a low of 14,560.27.
On Tuesday, the index closed up 63.18 points or 0.44 percent, at 14,553.33. The index scaled an intraday high of 14,607.90 and a low of 14,492.23.
Crude oil futures ended lower after data from Baker Hughes showed an increase in weekly oil rig count, following the jump in U.S. crude stockpiles last week.
The Energy Index dropped 0.18 percent, with U.S. crude oil futures for August delivery dipping $0.03, to settle at $56.93 a barrel on the New York Mercantile Exchange Thursday.
Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.76 percent, while Canadian Natural Resources Limited (CNG.TO) fell 0.21 percent. Crescent Point Energy Corp. (CPG.TO) fell 0.31 percent, while Encana Corp. (ECA.TO) gained 0.36 percent.
Cenovus Energy Inc. (CVE.TO) shed 1.50 percent.
Gold futures ended on hopes of a deal in the Greek financial crisis, after paring most of losses after the dollar weakened on some disappointing economic data from the U.S..
The Gold Index slipped 0.13 percent, with gold for August delivery shedding $5.80 or 0.5 percent, to settle at $1,163.50 an ounce on the New York Mercantile Exchange Thursday.
Among gold stocks, Goldcorp Inc. (G.TO) dipped 0.10 percent, Barrick Gold Corp. (ABX.TO) dropped 2.06 percent, and Kinross Gold Corp. (K.TO) also surrendered 2.06 percent.
The Capped Materials Index slipped 0.10 percent, as Agrium Inc. (AGU.TO) added 1.25 percent and Agnico Eagle Mines Limited (AEM.TO) moved up 0.54 percent.
Potash Corp. of Saskatchewan (POT.TO) gained 0.60 percent after German potash maker K+S rejected its unsolicited takeover proposal.
The Diversified Metals & Mining Index dropped 1.03 percent, even as First Quantum Minerals Ltd. (FM.TO) slipped 0.06 percent and Teck Resources (TCK.B.TO) fell 2.67 percent.
The heavyweight Financial Index inched up 0.09 percent, as Royal Bank of Canada (RY.TO) edged down 0.20 percent, National Bank of Canada (NA.TO) dipped 0.51 percent, and Bank of Montreal (BMO.TO) ended flat at $74.01 a share.
Toronto-Dominion Bank (TD.TO) gained 0.11 percent, Bank of Nova Scotia (BNS.TO) dropped 0.62 percent, and Canadian Imperial Bank of Commerce (CM.TO) fell 0.31 percent.
The Capped Health Care Index gained 1.26 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) jumped 3.33 percent, Concordia Healthcare (CXR.TO) rose 1.94 percent and Catamaran (CCT.TO) added 0.54 percent.
Extendicare Inc. (EXE.TO) gathered 1.32 percent after completing the sale of its U.S. business.
The Capped Industrials Index gathered 1.38 percent, as Bombardier Inc. (BBD-A.TO) gained 2.22 percent and Finning International Inc. (FTT.TO) moved up 1.24 percent.
The Information Technology Index gained 1.34 percent, as BlackBerry Inc. (BB.TO) fell 2.15 percent, Sierra Wireless, Inc. (SW.TO) jumped 4.80 percent, and Descartes Systems Group Inc. (DSG.TO) added 1.60 percent.
The Capped Telecommunication Index gained 0.72 percent, as TELUS Corp. (T.TO) gained 1.37 percent, BCE Inc. (BCE.TO) added 1.15 percent, and Manitoba Telecom Services (MBT.TO) dropped 0.54 percent. Rogers Communication (RCI-B.TO) gained 0.84 percent.
Loblaw Companies Limited (L.TO) gained 1.01 percent after agreeing to recommence negotiations with UFCW locals 175 & 633 and 1000A relating to labor contracts.
Sears Canada (SCC.TO) dropped 1.32 percent after Ronald Boire announced his departure from the company as President and CEO at the end of this summer.
On the economic front, the U.S. Labor Department said non-farm payroll employment increased by 223,000 jobs in June, but below the addition of 230,000 jobs anticipated by economists.
Nonetheless, the unemployment rate still dropped to 5.3 percent in June from 5.5 percent in May. Economists expected the unemployment rate to dip to 5.4 percent. The bigger than expected decrease pulled the unemployment rate down to its lowest level since hitting 5.0 percent in April of 2008.
While the data was largely overshadowed by the release of the monthly jobs report, the Labor Department also released a report on Thursday showing an unexpected increase in initial jobless claims in the week ended June 27. Initial jobless claims rose to 281,000, an increase of 10,000 from the previous week's unrevised level of 271,000. Economists expected jobless claims to edge down to 270,000.
Eurozone producer prices continued to decline in May largely due to notable weakness in energy costs, data from Eurostat showed Thursday. Producer prices fell 2 percent year-on-year in May following a 2.1 percent drop in April. The annual fall matched economists' expectations.
The British construction sector expanded at a faster than expected rate in June, the fastest in four months, on higher output and new orders, survey figures from Markit Economics and Chartered Institute of Procurement & Supply showed Thursday. The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers' Index rose to 58.1 in June from 55.9 in the previous month. Economists expected the index to rise to 56.5.
U.K. house prices dropped in June taking the annual growth to the lowest in two years, data from the Nationwide Building Society revealed Thursday. The annual increase in house prices moderated to a two-year low of 3.3 percent in June from 4.6 percent in May. Economists had forecast a 4.5 percent rise for June.
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