The TSX appeared headed for a higher open Friday as commodity prices rose and European leaders appeared to have made some serious progress on solving their persistent debt crisis.
The S&P/TSX Composite Index moved higher by 13.76 points to end the day at 11,424.70
The Canadian dollar gained 1.36 cents to 98.16 cents U.S. early Friday
While rising commodity prices could buoy the TSX, continuing pressure on Research In Motion shares are expected to be a weight, though the already eroded valuation of the company means it doesn't have the market heft it once did.
The BlackBerry maker reported dismal earnings results after the close of markets on Thursday, with an adjusted loss of 37 cents per share that widely missed the three-cent-per-share loss analysts had expected. It also announced another delay to the launch of its new smartphones.
The Waterloo, Ont.,-based company also said it would lay off a third of its workforce — or about 5,000 employees — to contain costs as it pushes ahead with a complete revamp of the BlackBerry operating system. In pre-market trading on the Nasdaq, the company's stock fell 15%, or $1.38, to $7.75 U.S.
In Canadian corporate news, Canadian Pacific Railway has named Hunter Harrison as its new president and chief executive officer, the result of changes pushed through by the company's largest shareholder. Harrison's appointment was widely expected after a high-profile battle waged against the Calgary-based railway's former leadership by William Ackman, head of a New York-based investment fund.
Canadian economic news expected Friday includes important GDP figures as well as data on industrial prices.
ON BAYSTREET
The TSX Venture Exchange fell back 7.01 points Thursday to 1,164.42. The Nasdaq Canada index subtracted 3.13 points to 356.63
ON WALLSTREET
U.S. stocks were set to rally at the open Friday after European leaders reached a deal on struggling euro-zone banks.
Futures for the Dow Industrials vaulted 131 points, or 1.1%, to 12,657, about 30 minutes before the opening bell, while futures for the S&P 500 galloped 23.4 points, or 1.8%, to 1,345.80. Futures for the tech-rich Nasdaq improved 43.75 points, or 1.7%, to 2,571.50
Friday also marks the end of the first half of the year. The three major indexes were on pace to close out with gains between 3% and 9%.
At the two-day European Union summit in Brussels, European Union leaders struck a "breakthrough" deal early Friday to ease the recapitalization of struggling banks, which should help draw the euro-zone back from the brink of its debt crisis.
The deal includes a European banking union with capital injections that will go straight into banks. This will have the potential to reduce what one bond analyst called "the bank-sovereign negative feedback loop."
European stocks surged in afternoon trading on the news. Britain's FTSE 100 added 1.1%, the DAX in Germany jumped 0.8% and France's CAC 40 rallied 1.3%.
Meanwhile, Italian and Spanish 10-year bond yields fell, with Spanish bonds at 6.66% and Italian bonds at 6.03%. Both were previously flirting with 7% rates, which Spanish Prime Minister Mariano Rajoy called unsustainable.
Asian markets ended higher. The Shanghai Composite closed just above breakeven, while the Hang Seng in Hong Kong surged 3.1% and Japan's Nikkei gained 1.5%.
Oil for August delivery rose $2.45 to $80.14 U.S. a barrel.
Gold futures for August delivery jumped $21.70 to $1,572.10 U.S. an ounce.
