Toronto's main stock index looked set to open higher on Friday on hopes that central banks of the world's major economies are ready to step in to stabilize markets if pushed to the brink by the outcome of Greece's weekend elections.
The S&P/TSX Composite Index ended Thursday off 31.45 points to 11,466.42. Canada stock futures traded up 0.28%.
The Canadian dollar was down 0.18 of a cent this morning to 97.60 cents U.S.
Among stocks to watch this morning, CIBC raised the target price on Cominar REIT to $25 from $24.50 on higher Q1 funds from operations; rating sector performer
Canccord Genuity cut the price target on MAG Silver to $16 from $18 on valuation; its rating a speculative buy
On the economic front this morning, Statistics Canada told us that manufacturing sales fell 0.8% in April to $49.1 billion, the third decline in four months, mostly on the backs of decreases in sales of aerospace products, and petroleum and coal products.
ON BAYSTREET
The TSX Venture Exchange gained 8.45 points to 1,252.33. The Nasdaq Canada index moved into the green by 0.38 points to 366.05
ON WALLSTREET
U.S. stocks were poised to follow global markets higher as central banks in Europe signaled they would provide more cash to help banks deal with the ongoing sovereign debt crisis.
Futures for the Dow Industrials added 27 points, or 0.2%, to 12,633, half an hour before the opening bell, while futures for the S&P 500 tacked on 1.6 points, or 0.1%, to 1,327.80. Futures for the tech-rich Nasdaq gained 7.5 points to 2,542.5.
After markets in Europe closed for trading on Thursday, Bank of England Governor Mervyn King said the central bank and the Chancellor of the Exchequer are working on new policies to provide funding to banks for "several years" at rates below current market rates.
And on Friday, European Central Bank President Mario Draghi said the bank would "continue to supply liquidity to solvent banks where needed." He said strengthening European economies is crucial, and that it's time to implement plans to spur long-term growth.
Still, trading could be volatile Friday, as investors brace for the crucial Greek elections this Sunday.
Outside of Greece, sky-high borrowing costs in Italy and Spain still have investors on edge.
Last week, Spain asked for €100 billion from the European Union to provide a buffer for its ailing banks. But the country was hit by a downgrade by rating agency Fitch last week and Moody's on Wednesday. Both agencies warned the country's debt is at risk for further downgrade into junk bond status.
The yields on Spanish 10-year bonds improved slightly Friday, falling to 6.83% from the high just above 7% early Thursday.
European stocks were all higher in midday trading. Britain's FTSE 100 added 0.3%, while the DAX in Germany rose 1.1% and France's CAC 40 gained 1.6%.
Asian markets were mostly higher at the close. The Shanghai Composite rose 0.5%, the Hang Seng in Hong Kong jumped 2.3% but Japan's Nikkei edged up only 0.01%.
Oil for July delivery edged up 13 cents to $84.04 U.S. a barrel.
Gold futures for August delivery rose $10.80 to $1,630.40 U.S. an ounce.
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