Canadian stocks were moving higher Friday morning as commodities rebounded from recent losses amid hopes that the recent policy moves from the Federal Reserve, European Central Bank and the Japan's central bank would help economic recovery and a lower interest regime.
Meanwhile, Canada's annual inflation rate eased slightly in August, leaving some room for the Bank of Canada to hold rates.
The S&P/TSX Composite Index gained 31.20 points or 0.25 percent to 12,440.45.
Among base-metals stocks, First Quantum Minerals (FM.TO) gained over 3 percent. Teck Resources (TCK_B.TO) and Inmet Mining (IMN.TO) gathered around 1 percent each.
The price of gold was moving higher Friday morning as the U.S. dollar was ticking lower versus a basket of currencies as the recent measures to stimulate growth would fuel inflation and keep interest rates at rock bottom. Gold for December added $14.20 to $1,784.40 an ounce.
Among gold plays, Centerra Gold (CG.TO) gained nearly 5 percent. Detour Gold (DGC.TO), Barrick Gold (ABX.TO) and Goldcorp. (G.TO) gathered around 2 percent each
The price of crude oil was recovering from recent losses Friday morning amid a weak U.S. dollar. Crude for November delivery gained $0.71 to $93.13 a barrel.
In the oil patch, Niko Resources (NKO.TO) soared close to 9 percent. Imperial Oil (IMO.TO), Celtic Exploration (CLT.TO) and Tourmaline Oil (TOU.TO) gained around 2 percent each.
Private equity firm Onex Corp. (OCX.TO) and Canada Pension Plan Investment Board or CPPIB, joint owners of UK-based industrial holding company Tomkins, said that CPPIB has agreed to acquire Tomkin's Air Distribution division for about $1.1 billion in cash. Shares of Onex gained close to 2 percent.
Wealth management company Gluskin Sheff + Associates Inc. (GS.TO) was up 3 percent even after reporting lower fourth quarter net income of C$2.3 million or C$0.08 per share compared to C$22.2 million or C$0.75 per share in the year ago quarter. Analysts were expecting the company to earn C$0.18 per share for the quarter.
Meanwhile, Research In Motion (RIM.TO) was down 5 percent after suffering service outage across Europe, the Middle East and Africa.
YM BioSciences Inc. (YM.TO) shed 2 percent despite reporting a narrower fourth quarter net loss of C$6.1 million or C$0.04 per share compared to the loss of C$8.9 million or C$0.08 per share a year ago. Analysts were expecting the company to report a loss of C$0.05 per share for the quarter.
In economic news, Statistics Canada said consumer prices rose at a slower 1.2 percent in year-over-year in August, following a 1.3 percent gain in July. Higher prices for the purchase of passenger vehicles, gasoline, meat and food purchased from restaurants were major factors in the increase of the August Consumer Price Index. Meanwhile, the Bank of Canada's core index rose 1.6 percent in the 12 months to August, following a 1.7 percent gain in July.
From the euro zone the U.K. budget deficit remained unchanged in August from the previous year level, data from the Office for National Statistics showed. Excluding intervention, public sector net borrowing was GBP 14.4 billion in August, this was equal to the net borrowing in August 2011. Economists had forecast a level of GBP 15 billion.
by RTT Staff Writer
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