Futures for Canada's main stock index rose on Friday, as oil prices hit 11-month highs on Saudi Arabia's promise to cut output, while optimism of economic recovery later this year also lifted sentiment.
The TSX raced higher 199.46 points, or 1.1%, to close Thursday at 18,027.57.
The Canadian dollar dipped 0.04 cents to 78.65 cents U.S.
March futures were up 0.2% Friday.
RBC raised the target price on Linamar to $70.00 from $60.00
Canaccord Genuity raised the target price on Lundin Mining to $13 from $10.50
On the economic beat, Statistics Canada said employment fell by 63,000 (or 0.3%) in December—the first decline since April. The unemployment rate was 8.6%, little changed from 8.5% in November.
Analysts have raised their forecasts for the Canadian dollar, expecting the economy to benefit from fiscal stimulus and higher oil prices but after a 10-month rally the currency is set for a period of consolidation.
ON BAYSTREET
The TSX Venture Exchange jumped 17.55 points, or 2%, Thursday to 915.07.
ON WALLSTREET
Stock futures rose early Friday after another record-breaking session on Wall Street as traders braced for the latest U.S. jobs report release.
Futures for the Dow Jones Industrials gained 79 points, or 0.3%, to 31,021.
Futures for the S&P 500 acquired 11.5 points, or 0.3%, at 3,807.
Futures for the NASDAQ Composite picked up 65.5 points, or 0.5%, to 12,723.25.
The gains come after the three major averages set record closing highs, including the NASDAQ, which jumped 2.6% to close above 13,000 for the first time. The Dow hiked 0.7% and S&P 500 rose 1.5%.
Investors will get a key piece of economic data on Friday morning when the U.S. Labor Department releases its monthly jobs report for December. Economists surveyed by Dow Jones expect a meager gain of 50,000 jobs for the period, but some fear that the report could actually show a net loss of jobs after many areas reinstated economic restrictions to slow the spread of the pandemic.
In addition to the new jobs report, investors will also get new data on wholesale inventories and consumer credit on Friday to better chart the path of economic recovery.
Stocks started off the New Year with a slump on Monday, but the market has since churned higher despite the turmoil in Washington, where a riot at the Capitol on Wednesday delayed the procedural congressional confirmation of Presidential-elect Joe Biden’s victory. The Dow and S&P 500 have notched three-day winning streaks.
Thursday night, President Donald Trump acknowledged for the first time that a new administration will take over on Jan. 20.
One expert said that growing clarity in Washington and the amount of cash sitting on the sidelines could lead the stocks higher, with cyclical stocks in particular benefiting.
Overseas, in Japan, the Nikkei 225 popped 2.4% Friday, while in Hong Kong, the Hang Seng index soared 1.2%.
Oil prices increased 72 cents to $51.55 U.S. a barrel.
Gold prices slid $24.40 at $1,889.20 U.S.
