Canadian stocks were hovering in the green Friday morning on bargain hunting as stocks settled at near their 7-month lows in the previous session. Gold stocks were turning in a particularly strong performance, extending gains for a second session.
However, big gains were capped on concerns over the euro zone after Fitch Ratings downgraded the Greek credit rating by one notch to CCC from B- on concerns the nation will exit from the euro zone. Meanwhile, Moody's Investor Service downgraded 16 of Spain's banks.
Back home, the Canadian dollar was recovering from recent losses after inflation in April rose at a faster phase than widely expected.
The S&P/TSX Composite Index gained 92.76 points or 0.82 percent to 11,423.44, a day after snapping its four session losing streak
The Global Gold Index gained nearly 3 percent amid rebounding bullion prices. The price of gold was extending gains Friday morning as a steady euro prompted some buying of the precious metal. Gold for June gained $18.10 to $1,593.00 an ounce.
Among gold plays, Goldcorp. (G.TO), Barrick Gold (ABX.TO) and Kinross Gold (K.TO) gathered around 3 percent each.
B2Gold (BTO.TO) and Lake Share Gold (LSG.TO) rose over 6 percent each.
The price of crude oil was little changed Friday morning as traders await more clarity from the developments in the euro zone. Crude for June delivery edged down $0.22 to $92.34 a barrel.
In the oil patch, Niko Resources (NKO.TO), ARC Resources (ARX.TO) and Bonavista Energy (BNP.TO) rose close to 3 percent each.
Meanwhile, Sears Canada Inc. (SCC.TO) extended losses, dipping over 3 percent. Yesterday, the stock plunged nearly 13 percent after Sears Holdings Corp. (SHLD) announced plans to spin off a minority stake in Sears Canada Inc.
Interactive technology products company SMART Technologies Inc. (SMA.TO) plunged 16 percent after reporting that it slipped into the red in fourth quarter.
In economic news, Statistics Canada said consumer prices rose 2.0 percent in the 12 months to April, led by increases in transportation costs. Economists were expecting the index to come in at 1.90 percent. Energy prices increased 1.1 percent in the 12 months to April, following a 5.1 percent rise in March. The slower increase in April was largely attributable to smaller price gains for gasoline and electricity, as well as price declines for natural gas (-13.9 percent).
Meanwhile, the Bank of Canada's core index rose 2.1 percent in the 12 months to April, led by price increases for the purchase of passenger vehicles. This increase followed a 1.9 percent gain in the core index in March.
From the euro zone, Germany's producer price inflation slowed to the lowest level in twenty-two months in April, data released by the Federal Statistical Office showed. The output price inflation eased to 2.4 percent in April from 3.3 percent in March, while economists expected inflation to slow to 2.5 percent. The growth rate for April was the smallest since June 2010, when output prices increased 1.7 percent.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.