The Toronto stock market was positive Friday amid rising metal prices and a lower than expected expected reading on Canadian inflation.
The S&P/TSX Composite index was still up 26.74 points to greet noon at 12,059.32, off its highs of the morning.
The Canadian dollar was lower by 0.18 cents to 101.17 cents U.S.
The TSX finished at a three-and-a-half-month high Thursday, closing above 12,000 for the first time since early May when the European debt crisis took a turn for the worse as markets focused on high debt levels in Spain.
Traders were encouraged by a solid reading on American housing starts and hopes that central bankers are prepared to do whatever is necessary to keep the economic recovery on track and preserve the European monetary union.
This was also the case Friday when traders reacted favourably to remarks by German Chancellor Angela Merkel during her visit to Ottawa. She said Thursday that her country — which has Europe’s biggest economy — is committed to doing everything it can to maintain the euro currency union.
The base metals sector gained as copper added to Thursday’s three-cent advance, up another four cents to $3.42 U.S. a pound. Prices for the metal, viewed as an economic bellwether as it is used in so many industries, gave up ground earlier this week in the wake of weak Chinese export growth data and much lower than expected Japanese economic growth in the second quarter.
First Quantum Minerals climbed 36 cents to $20.03 while Teck Resources climbed 49 cents to $29.79.
Among energy plays, Suncor Energy was ahead 16 cents to $32.22.
Financials were also positive with TD Bank ahead 65 cents to $81.13.
The gold sector slipped with Goldcorp Inc. up 30 cents to $38.23.
On the economic beat, Statistics Canada revealed this morning that consumer prices rose 1.3% in the 12 months to July, following a 1.5% increase in June. On a seasonally adjusted monthly basis, the CPI declined 0.1% in July, after decreasing 0.2% in June.
ON BAYSTREET
The TSX Venture Exchange gained 4.79 points to 1,226.04. The Nasdaq Canada advanced 1.36 points to 350.31.
Nine of the 14 Toronto subgroups remained positive into the noon hour. Metals and mining and health-care stocks were each up 0.6%, while industrials were ahead 0.5%.
The five laggards were weighed by gold, down 0.5%, while utilities and global base metals slipped 0.2% each.
ON WALLSTREET
U.S. stocks opened modestly higher Friday as investors look to close the books on a quiet trading week.
The Dow Jones industrial average broke for lunch up 18.06 points to 13,268.20. Caterpillar was the top gainer on the Dow, gaining more than 1%. Merck was the main drag on the index, with shares down about 0.5%.
The S&P 500 nipped up 1.39 points to 1,416.90. The Nasdaq grew 6.71 points to 3,069.10.
Apple stock rose to a fresh all-time high, climbing above $644 U.S. a share.
Companies, including retailer Foot Locker and peanut butter and coffee maker J.M. Smucker, reported their quarterly results Friday morning.
Gap reported better-than-expected quarterly earnings late Thursday. The retailer also raised its outlook for full-year earnings and increased its dividend payment. Shares rose 4%.
Facebook shares rose slightly after the stock fell 6.3% Thursday as the social media company's "lock-up period" for company insiders expired. More than 150 million shares changed hands, pushing the stock down as much as 7% to an all-time intraday low.
Shares of Groupon fell to another all-time low after the company reported on Monday sales growth that disappointed investors.
On the economic slate, the Thomson Reuters/University of Michigan Consumer Sentiment Index rose to 73.6 in early August from 72.3 last month. The preliminary reading was expected to come in at 72.2.
Separately, the Conference Board said its index of leading economic indicators for July rose 0.4% to 95.8. It was expected to have increased by 0.2%.
The price on the benchmark 10-year U.S. Treasury crept up, pushing the yield down to 1.80% from Wednesday’s 1.84%. Treasury prices and yields move in opposite directions.
Oil for September delivery regained 25 cents to $95.85 U.S. a barrel.
Gold futures for December delivery rose $1.30 to $1,620.50 U.S. an ounce.
