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Data surprised to the upside in Canada, and the Bank of Canada took a less cautious - but still cautious - tone last week. But it's the improved situation overseas that has had the more important effect on lifting Canadian stocks in recent weeks.
Last Friday's labour market report from Statistics Canada forced a double take. In May, the Canadian economy added 290K jobs, versus an expected further decline of 500K, and hours worked rose by 6.3% on a month-over-month basis. Together, these gains represent a 10% recovery of lost