Canadian stocks were trading firm Friday morning as commodities moved 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.
In corporate news from south of the border, 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.
The S&P/TSX Composite Index gained 69.22 points or 0.61 percent to 11,494.69, after dipping to a 2-week low in the previous session.
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 $1.04 to $87.12 a barrel.
In the oil patch, Celtic Exploration (CLT.TO) rose close to 5 percent. Pacific Rubiales Energy (PRE.TO), Cenovus Energy (CVE.TO) and Baytex Energy Corp. (BTE.TO) gathered around 2 percent each.
Golds stocks were under the buyer's radar amid a rebound in bullion prices. Gold for August gained $27.20 to $1,592.50 an ounce.
Among gold plays, Detour Gold (DGC.TO) surged over 6 percent. Allied Nevada Gold (ANV.TO) and Goldcorp. (G.TO) were up around 2 percent each.
NovaGold Resources Inc. (NG.TO, NG) gained 6 percent after reporting 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.
Meanwhile, broadcasting and wireless communications equipment manufacturing company DragonWave Inc. (DWI.TO) was extending losses for a second session, shedding about 2 percent. Yesterday, the company reported a wider first quarter loss of $12.6 million or $0.35 per share compared to $9.9 million or $0.28 per share in the same period 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. The stock dived 7 percent
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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