Friday, July 7, 2006, 4:15 PM ET (Thomson Financial Corporate
Services): The S&P/TSX Stock Exchange was mild-tempered today as it took in
disappointing news on employment figures. Investors are looking forward to
earnings season, with the unofficial kick off set for Monday with
U.S.-based Alcoa's results due for release. Also, Canadian investors will
be focusing on the Bank of Canada's meeting on interest rates.
* The S&P/TSX Stock Exchange Composite Index rose 29.90 points, or
0.26%.
* June employment figures were released on both sides of the border
this morning. In Canada, after the large job gains of May, the labour
market lost 4600 jobs. Disappointed analysts had expected a small increase
instead, but did remark that some full-time losses were offset by part-time
work for the summer months. Still, the overall unemployment rate remained
at 6.1%, a 32- year low. Investors are watching to see if the Bank of
Canada will let these numbers affect their interest rate decision next
week.
* In the U.S., there was a gain of 121,000 jobs, but it was smaller
than the 160,000 economists had expected. When coupled with a revised May
figure of 92,000, this indicates a weakening labour market. Meanwhile, the
unemployment rate remained at 4.6%.
* The Phelps Dodge-Inco-Falconbridge saga continued to unfold, as
Xstrata extended its Falconbridge hostile takeover offer deadline from
midnight tonight to July 21st. For now, the offer stands at C$52.50 per
share. Meanwhile, the EU cleared Teck Cominco's bid for Inco itself, soon
after clearing Inco's for Falconbridge.
* Elsewhere in the minerals industry, a bid was thwarted as Northgate
Minerals stopped courting Aurizon Milnes and formally withdrew its C$0.741
per share offer. The British Columbia Supreme Court had upheld Aurizon's
plea to stop the deal after the offer was deemed inadequate by Aurizon's
board, and today the Court of Appeals upheld the ruling. The deal would
have created a C$1 billion plus gold mining giant.
-- Carolyn.Crapo@contractor.Thomson.com; Thomson Financial Corporate Services
This is Thomson Financial Corporate Services Canadian Commentary, which
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SOURCE Thomson Financial Corporate Group
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