Bay Street stocks may struggle to sustain gains at open Friday as energy prices leveled off from their three-month high on profit taking. Meanwhile, Canadian inflation came in tamer than expected, leaving some room for the Bank of Canada to hold rates near record low levels.
U.S. stock futures were pointing to a flat open.
The S&P/TSX Composite Index settled above the 12,000-mark fro the first time since early May, adding 127.14 points or 1.07 percent to 12,032.58.
The price of crude oil was hovering near its three-month high Friday morning, with possible tensions in Middle-East supporting prices. Crude for September eased $0.03 to $95.57 a barrel.
The price of gold was little changed Friday morning as the U.S. dollar was trading mixed, with the euro turning strong following comments from German Chancellor Angela Merkel that the European Central Bank's approach to defend the euro is in line with the ideology of the politicians in the region. Gold for December edged up $0.70 to $1,619.90 an ounce.
In corporate news from Canada, blackberry maker Research In Motion (RIM.TO) said it would provide user friendly applications in its mobiles to facilitate users to tap their contacts' public profiles.
Fertilizer maker Potash Corp. (POT.TO) announced planned shutdown of its Saskatchewan mine for nearly a month.
In economic news, Statistics Canada said consumer prices rose 1.3 percent year-over-year in July, following a 1.5 percent gain in June. Higher prices for the purchase of passenger vehicles, food purchased from restaurants, meat and electricity were major factors in the increase of the July inflation. On a seasonally adjusted monthly basis, the CPI declined 0.1 percent in July, after decreasing 0.2 percent in June. Meanwhile, the Bank of Canada's core index rose 1.7 percent in the 12 months to July, following a 2.0 percent gain in June.
Elsewhere, euro zone's foreign trade surplus increased in June, the latest figures published by Eurostat showed. The trade surplus rose to EUR 14.9 billion in June from EUR 7.1 billion in May. A year ago, the balance was in a surplus of EUR 0.2 billion.
Earlier today, data from the Federal Statistics Office revealed German producer price inflation eased to 0.9 percent in July from 1.6 percent in June. Economists expected the rate to eased to 1.2 percent. A year ago, the rate of inflation was 2.1 percent.
by RTT Staff Writer
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