Canada stocks end lower after two-session climb

SAN FRANCISCO （MarketWatch） — Canadian shares finished modestly lower Thursday, pulling back after a two-session climb, but finding some support as Inmet Mining Corp.’s stock rallied after the company announced a merger agreement with Lundin Mining Corp.

“Concern that the slow U.S. job market recovery stalled out, via this morning’s higher-than-expected jobless claims, sparked some risk to be taken off the table in North American equities today,” said Derek Holt, vice president of Scotia Capital Economics.

“The impact on Canadian markets was more acute because the effects were more concentrated upon commodity prices including gold,” he said.

Deficit narrows

News that Canada’s trade deficit unexpectedly narrowed in November likely helped to limit the day’s overall stock losses.

Statistics Canada on Thursday reported that the trade deficit narrowed to $81 million in November from about $1.5 billion in October.

Exports to the United States rose 0.6%, but imports fell 5.1%, data showed, with Canada’s trade surplus with the U.S. rising to $3 billion in November from $1.7 billion in October.

Overall, Canada’s imports of energy products fell 15.2% to $3.1 billion in November, according to the data.

“It is somewhat concerning to see such low levels of trade with the U.S., though it is too premature to say this latest move represents a permanent shift in U.S. demand for Canadian goods,” said Ian Pollick, portfolio Strategist at TD Securities.

In currencies trading, one U.S. dollar /quotes/comstock/21o!x:susdcad （USDCAD 0.9895, -0.0003, -0.0303%）  bought 98.89 Canadian cents, up from 98.55 late in North American trading Wednesday.