The Toronto Stock Exchange is set to push slightly higher as commodity prices bounced back and traders awaited the release of data on the U.S. housing market following a string of mildly encouraging data about of the world’s largest economy.
The Canadian dollar fell below parity, shedding 0.23 of a cent to 99.80 cents US as traders took in inflation data from Statistics Canada’s consumer price index.
The agency said gasoline and food continued to push up inflation in February to 2.6%, the second consecutive monthly increase. The overall cost of consumer goods rose by 0.1% during the month from a year ago, after rising by two-tenths of a point in January.
Gold prices were up US$4.90 to US$1,647.40 per ounce. Copper prices added three cents to US$3.79. April oil prices were up 25 cents to US$105.60 a barrel, in electronic trading on the New York Mercantile Exchange.
Wall Street futures were mixed, with Dow Jones industrial futures down 26 points to 13,975, Nasdaq futures down 10.5 points to 2,717.25 and S&P 500 futures slipping 2.2 points to 1,386.7.
Later Friday, the U.S. government will release a report on the number of people who bought new homes in February. Federal Reserve Chairman Ben Bernanke will also be delivering brief opening remarks at a Fed conference on central banking in Washington.
The National Association of Realtors on Wednesday released a mixed report about the state of the U.S. housing market. Sales of previously occupied homes dipped last month, but the sales pace for the winter was the best in five years.
Housing has been dragging on the economic recovery. An oversupply of homes has weakened construction and other trades in many parts of the country.
Britain’s FTSE 100 rose 0.5% to 5,873.87. Germany’s DAX gained 0.6% to 7,022.42 and France’s CAC-40 added 0.4% to 3,486.70.
In Asia, stocks were jolted for a second day in a row by an index, released Thursday, that showed renewed weakness in China’s manufacturing. The gauge compiled by HSBC fell to 48.1 in March from 49.6 in February. Figures below 50 indicate that manufacturing is shrinking.
That data comes on top of trade figures showing both Chinese and global demand falling. Weak European economic indicators added to worries about a slowdown.
Japan’s Nikkei 225 index dropped 1.1% to close at 10,011.47 as the country’s formidable export sector faded amid fears of slowing overseas demand. Yamaha Motor Co. shed 3.1% and Sharp Corp. slid 3.3%.