Canadian stocks are poised for a mixed open Friday amid flat commodities and varied cues from the global equity markets. While most Asian markets settled in the positive territory overnight as plans for economic reform in Spain temporarily eased investors' worries over the euro zone debt situation, European shares were lingering in the red as yield on Spanish 10-year bonds rose above 6 percent, ahead of the announcement of the results of the stress tests conducted on the country's banks.
U.S. stock futures were pointing to a lower open.
On Thursday, the S&P/TSX Composite Index snapped it five-session losing streak to add 105.98 points or 0.87 percent to 12,338.85.
The price of crude oil was ticking lower Friday morning with crude for November delivery slipping $0.11 to $91.74 a barrel.
The price of gold was steady near its seven-month high Friday morning as risk appetite increased after the Spanish government revealed a tight 2013 budget focused on spending cuts rather than tax hikes. Gold for December edged down $2.30 to $1,778.20 an ounce.
In corporate news from Canada, smart phone maker Research In Motion Ltd. (RIM.TO) surged 19 percent in after-hours trade Thursday, after reporting a second-quarter loss that came in better than what the Street expected. RIM second-quarter net loss was $235 million or $0.45 per share, compared to net income of $329 million or $0.63 per share last year. On an adjusted basis, loss was $142 million or $0.27 per share. Analysts expected a loss of $0.46 per share for the quarter.
Electric power transmission company TransAlta Corp. (TA.TO) announced that through its subsidiaries, it has successfully completed the acquisition of the Solomon power station for $318 million and the acquisition is expected to generate pre-financing cash flows of approximately $40 million per year.
Oil and gas industry services provider Lonestar West Inc. (LSI.V) posted fourth-quarter net loss of $198,000 or $0.01 per share, narrower than $343,000 or $0.03 per share in the prior year quarter.
In economic news, Statistics Canada said real gross domestic product grew 0.2 percent in July, after edging up 0.1 percent in June, on the strength of manufacturing and utilities. Economists expected the growth to come in only at 0.1 percent. Manufacturing grew 0.6 percent in July rebounding from a 0.7 percent decline in June, while durable goods production expanded 0.7 percent in July, mainly as a result of increases in computer and electronics products
From south of the border, the U.S. Commerce Department revealed that personal income inched up by 0.1 percent in August, matching the downwardly revised increase reported for July. Economists had expected income to edge up by 0.2 percent compared to the 0.3 percent growth originally reported for the previous month. At the same time, the Commerce Department said personal spending increased by 0.5 percent in August compared to a 0.4 percent increase in July. The spending growth matched economist estimates.
Elsewhere, euro zone inflation rose unexpectedly in September due to an increase in energy and food prices, flash estimate from Eurostat showed. Inflation increased to 2.7 percent in September from 2.6 percent in August. The rate was forecast to slow to 2.4 percent.
Meanwhile, retail sales in Germany recovered in August following a modest decline in the previous month, reviving expectations that private consumption, one of the main drivers of growth for euro zone's largest economy, could steer the economy through the turbulence in the rest of the single-currency bloc.
by RTT Staff Writer
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