Canada's main stock index looked set to open higher on Friday after data showed U.S. employers in July hired the most workers in five months.
However, an increase in the jobless rate was seen keeping expectations of additional monetary stimulus from the Federal Reserve intact.
The S&P/TSX Composite index stumbled 112.03 points, or 1%, by Thursday's close to 11,506.50. Canada stock futures traded up 0.6% Friday.
The Canadian dollar moved higher 0.57 cents Friday morning to 99.85 cents U.S.
Among stocks to watch this morning, Manitoba Telecom Services Inc., which reported higher earnings excluding a tax credit and said it is looking into how to take advantage of new ownership rules that allow greater foreign participation in smaller telecoms like itself.
Sierra Wireless Inc. posted a second-quarter profit, aided by strong sales at its mobile computing division and a recent acquisition.
Smart Technologies Inc. said its first-quarter profit plunged 93% on a weak education market in North America and Europe.
The TSX Venture Exchange swooned 15.98 points Thursday to 1,173.65. The Nasdaq Canada index slid 2.59 points to 332.53.
U.S. stocks were headed for a higher open Friday as investors pinned their hopes on the government's latest monthly jobs report.
Futures for the Dow Jones Industrials vaulted 92 points, or 0.7%, to 12,923, about 30 minutes before the opening bell.
Futures for the S&P 500 gained 14.8 points, or 1.1%, to 1,376.70, and for the Nasdaq, futures gained 31.5 points, or 1.2%, to 2,650
After two disappointing central bank meetings, investors will close out the week with the July jobs report.
Economists predict the U.S. economy added 95,000 jobs in July and the unemployment rate stayed at 8.2%. This would mark only a slight improvement from the 80,000 jobs added in June.
While an upside surprise will be a positive step for the economy, a lackluster reading could fuel further hopes that the Federal Reserve will take steps to support the economy at its September meeting.
Earlier this week, the Fed decided to stick to its current policies, but indicated the U.S. economy is slowing and that more action could be in the cards soon.
Still, worries about the global economy persist, even more so after central bankers in the United States and Europe failed to take any stimulative action this week.
That will likely keep any jobs-related gains in check.
European stocks rose in afternoon trading. Britain's FTSE 100 added 1.5%, the DAX in Germany and France's CAC 40 gained 2.4%.
Asian markets ended mixed. The Shanghai Composite rose 1.0%, while the Hang Seng in Hong Kong slipped 0.1% and Japan's Nikkei lost 1.1%.
Oil for September delivery rose $1.09 to $88.22 U.S. a barrel.
Gold futures for August delivery rose $8.00 to $1,595.40 U.S. an ounce.