The Toronto stock market registered a solid advance Thursday after the European Central Bank announced a program to buy government bonds in order to lower the borrowing costs of countries that have been the most badly affected by the European debt crisis.
The S&P/TSX Composite index moved up 94.74 points to greet noon Friday at 12,234.47
The Canadian dollar gained 0.57 cents Friday to 102.32 cents U.S.
The base metals group gained as December copper shed a penny and closed at $3.52 U.S. after gaining six cents on Wednesday. First Quantum Minerals was up 79 cents at $19.97.
Major Drilling Group International jumped $1.07 or 11.7% to $10.20 as the company reported record quarterly earnings of $31.9 million or 40 cents a share, up from $17.9 million a year ago.
Oil prices were also higher amid hopes that a fix for the euro-zone government debt crisis would help get parts of Europe out of recession and improve demand prospects.
Suncor Energy climbed 50 cents to $31.85 while Canadian Natural Resources was ahead 73 cents at $30.09.
Goldcorp Inc. was up 85 cents at $41.36 while Iamgold Corp. gained 26 cents to $13.29.
The financials segment was up as Manulife Financial was up 25 cents at $11.50 and Scotiabank advanced 44 cents to $52.90.
The tech sector also provided lift with Open Text ahead $1.73 at $55.01.
North American markets registered solid gains Thursday in the wake of the European Central Bank’s move to get a grip on the euro-zone’s debt crisis.
The plan amounts to a commitment to buy unlimited amounts of short-term bonds from euro countries that request help. Ostensibly, the plan is meant to ease the financial pressures on Spain and Italy by giving them time to reduce their debt and reform their economies.
The ECB had been pressured to take action after Spain and Italy became the latest countries forced to pay yields in the seven per cent range on their benchmark 10-year bonds earlier this year, a level that raised worries those countries could be forced to seek a bailout.
The ECB plan seemed to be working Friday as Spain saw its cost of borrowing fall.
Investors think Spain will make a formal request to tap the new program within weeks, which could ease the pressures in the euro-zone’s fourth-largest economy.
On the economic docket, Statistics Canada reported this morning that this country added 34,000 jobs in August, mostly due to there being more part-time work. The unemployment rate held steady at 7.3%.
The agency also told us that building permits were issued worth just over $6.8 billion in July, down 2.3% from June.
ON BAYSTREET
The TSX Venture Exchange gained 14.41 points to 1,272.71.
Nine of the 14 Toronto subgroups were higher by noon. Metals and mining expanded 6.4%, while global base metals strengthened 4.8% and materials were up 3%.
The five laggards were weighed most by telecoms, off 0.9%, while consumer discretionary stocks shed 0.2%, and industrials were down 0.1%
ON WALLSTREET
U.S. stocks wavered Friday, as investors digested a disappointing August jobs report but hoped the weakness would prompt the Federal Reserve to jumpstart the slowing economy with stimulus when it meets next week.
The Dow Jones industrial average slouched 12.17 points to break for lunch at 13,279.80
The S&P 500 index gained 3.65 points, to 1,435.77, and the tech-heavy Nasdaq Composite Index was lower by 2.87 points to 3,132.94.
Intel lowered its guidance for third-quarter revenue, citing "weaker than expected demand in a challenging macroeconomic environment." Shares slid more than 3% on the news.
Lululemon's stock rose after the yoga apparel company reported a 49% increase in second-quarter profit, and delivered a better-than-expected earnings outlook for the third quarter.
Shares of Pandora plunged almost 20% after Apple announced plans to launch a competing live streaming music option.
Kraft shares declined after the company warned that earnings for its snack business Mondelez International may be lower than expected due to unfavorable foreign exchange rates.
Gunmaker Smith & Wesson Holding reported earnings and raised its full-year forecast Thursday, sending shares surging 15%.
Shares of Amazon ticked higher after the company unveiled four new tablets on Thursday. Despite the new products, much of the Amazon chatter focused on what the company didn't announce: A new phone.
Economically speaking, the U.S. Labor Department reported that 96,000 jobs were added in August, well below the 120,000 jobs that economists were looking for. The Labor Department also revised the job creation estimates for June and July, painting an even bleaker picture.
The unemployment rate ticked down to 8.1% from 8.3%, but only as a result of a significant drop in the number of people looking for jobs. Economists were expecting the jobless rate to hold steady at 8.3%.
The price on the benchmark 10-year U.S. Treasury regained strength, lowering yields to 1.62% from Thursday’s 1.67%. Treasury prices and yields move in opposite directions.
Oil prices for September delivery gained 63 cents to $96.14 U.S. a barrel.
The price of gold, which is used as a hedge against inflation, jumped on the chance that the Fed will inject the economy with more stimuli. The yellow metal rose $29, or 1.7%, to $1,734.60 U.S. an ounce.
