Canadian stocks are poised for a positive open Friday as commodities reversed their course to move higher after economic data out of China allayed fears of a slow down in the commodity hungry nation.
China's economic growth eased to a three-year low of 7.6 percent year-on-year in the second quarter, according to the National Bureau of Statistics. The outcome was almost in line with economists' expectations of 7.7 percent expansion.
Financial stocks may be in play after financial services giant JPMorgan Chase & Co. (JPM) posted lower second-quarter 2012 net income of $5.0 billion, compared with $5.4 billion a year ago, with earnings per share declining to $1.21 from $1.27 a year before.
U.S. stock futures were pointing to a higher open.
On Thursday, the S&P/TSX Composite Index shed 119.17 points or 1.03 percent to 11,425.47.
The price of crude oil was extending gains Friday morning as economic growth in China, the world's second-largest crude consumer, came in line with analyst estimates. Crude for August moved up $0.79 to $86.87 a barrel.
The price of gold was moving higher after falling in the past three sessions. Gold for August gained $17.40 to $1,582.70 an ounce.
In corporate news from Canada, NovaGold Resources Inc. (NG.TO, NG) reported second-quarter income of C$94.2 million or $0.26 per share, up from $24.6 million or loss per share of $0.01 in the comparable quarter last year.
Electronics products company Rutter Inc. (RUT.TO) slipped into the red in third quarter, reporting net loss of $1.2 million or $0.016 per share, compared to net income of $3.4 million or $0.044 per share in the year ago quarter.
In economic news from south of the border, the U.S., producer prices unexpectedly showed a modest increase in the month of June, according to a report released by the Labor Department Producer price index edged up by 0.1 percent in June after tumbling by 1.0 percent in May. The modest increase surprised economists, who had expected prices to see further downside and fall by about 0.4 percent.
Elsewhere, Moody's Investors Service on downgraded Italy's credit rating by two notches, citing contagion risk from Greece and Spain, higher funding costs and a deteriorating economic outlook.
by RTT Staff Writer
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