The Toronto stock market was higher Friday as traders picked up stocks that have sold off this month on worries about Greece leaving the euro-zone and generally slowing economic conditions.
The S&P/TSX Composite Index picked up 54.88 – off its highs of the day -- to greet noon at 11,385.56
The Canadian dollar slid back 0.17 to 97.94 cents U.S.
The pessimistic mood on markets lately has sent the TSX tumbling about 1,000 points or more than 8% to its lowest level since last October.
But Friday, the energy sector rose as Canadian Natural Resources gained 46 cents to $30.22.
The base metals component rose as July copper gained two cents to $3.49 U.S. a pound after hitting levels last seen in January. HudBay Minerals climbed 12 cents to $8.34.
The TSX global gold sector ran up, with Barrick Gold Corp. rose 83 cents to $38.99.
Financials were also positive after worries about euro-zone banks helped push the sector down 1.5% Thursday. Royal Bank rose 49 cents to $52.45.
Investors Group, which is part of IGM Financial and the Power group of companies, says it will reduce the management fees it charges on many of its products, starting in July. Investors Group will reduce its management fees by up to 0.4% per year and adds the reductions will affect about two-thirds of the funds it offers. IGM shares gained four cents to $41.60.
On the economic slate, Statistics Canada reported that the nation’s inflation rate edged up one 10th of a point to 2% in April as the cost of most things rose, but moderately.
The big surprise was that energy costs, for the first time since October 2009, rose at lower rate than the overall index with a tiny 1.1% increase from last year.
The agency says prices rose year-over-year in all eight of the major groups it tracks, led by transportation, which increase by 3.4%, and food, which cost 2.5% more.
On a monthly tracking, consumer prices rose 0.4% in April from March as the cost of gasoline increased by 3.2%.
ON BAYSTREET
The TSX Venture Exchange gained 6.13 points to 1,234.20, while the Nasdaq Canada moved back 2.51 points to 358.71.
Eight of the 14 Toronto subgroups were higher by midday, gold surging highest at 2.1%, materials jumping 1.2%, and energy 0.7% to the good.
The half-dozen laggards were weighed mostly by health-care, 1.1% less robust, information technology, down 1%, and global base metals, off 0.8%.
ON WALLSTREET
U.S. investors continue to worry about Europe's sovereign debt issues, with stocks opening little changed ahead of Facebook's debut on the Nasdaq.
The Dow Jones Industrials trailed Thursday’s close by 10.37 points at noon ET to 12,432.10
The S&P 500 faltered 5.01 points to 1,299.85. The tech-rich Nasdaq Composite Index erased 5.95 to 2,807.74.
Facebook, which priced its initial public offering at $38 U.S. a share after the closing bell Thursday, will start trading later Friday morning. The offering raised $16 billion U.S., making it the most valuable tech IPO in history.
Shares of Yahoo rose early Friday following a report that the Internet portal may have reached a deal with Alibaba that would put an end to a contentious relationship.
Apparel retailer Foot Locker reported better-than-expected earnings.
Shares of Salesforce.com rose sharply after company reported better-than-expected earnings late Thursday.
Shares of Chinese solar energy producers Yingli Green Energy, Trina Solar and Suntech Power declined early Friday, a day after the U.S. government announced new tariffs on Chinese solar panels. Shares of U.S. panel makers First Solar and SunPower also fell on Friday.
But the European debt crisis is still looming over world markets. Asian stocks sold off sharply and European markets remained under pressure. At the same time, borrowing costs for Spanish and Greek debt also remain high.
Concerns are mounting about a potential Greek exit from the euro, and the implications that could have for other fiscally troubled nations such as Spain and Italy. Rating agency Moody's downgraded 16 Spanish banks Thursday, including giants Banco Santander and BBVA, the latest sign of distress in Europe.
Greece, currently operating with a caretaker government, could leave the euro-zone if anti-austerity parties triumph in elections next month.
A growing number of depositors are withdrawing their money from Greek banks amid worries that their savings could be converted to a devalued currency if Greece drops the euro. The rapid withdrawals are putting further strain on the country's struggling financial sector.
The price on the benchmark 10-year U.S. Treasury slumped, pushing the yield up to 1.71% from Thursday’s 1.70%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell moved back 74 cents to $91.82 U.S.
Gold futures for June delivery rose $18.10 to $1,593 U.S. an ounce.
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