Canadian Stocks Rally Following U.S. Jobs Data

(RTTNews) - Canada stocks have moved sharply higher during trading on Friday, more than offsetting the modest pullback seen in the previous session.

The benchmark S&P/TSX Composite Index has surged 214.61 points or 1.1 percent to 20,507.23, reaching its highest intraday level in a month.

The rally on Bay Street comes following the release of the U.S. Labor Department's closely watched monthly employment report.

While the report showed modestly stronger than expected job growth in the month of August, the report also showed an unexpected increase in the unemployment rate.

The unexpected increase in the unemployment rate has added to investor optimism about the Federal Reserve refraining from further interest rate hikes.

Energy stocks have helped lead the way higher, with the S&P/TSX Capped Energy Index surging by 1.8 percent. The strength in the sector comes as the price of crude oil for October delivery is jumping $1.57 to $85.20 a barrel.

Significant strength is also visible among utilities stocks, as reflected by the 1.3 percent gain being posted by the S&P/TSX Capped Utilities Index.

Materials, consumer staples and financial stocks are also seeing notable strength, moving higher along with most of the other major sectors.

In Canadian economic news, Statistics Canada released a report showing real gross domestic product was nearly unchanged in the second quarter following a 0.6 increase in the first quarter.

Statistics Canada said the slowdown was attributable to continued declines in housing investment, smaller inventory accumulation, as well as slower international exports and household spending.