Source: The Canadian Press
The Toronto stock market seems poised for a flat open as oil prices back off and investors look to consolidate a solid gain recorded in the previous session.
The Canadian dollar was off 0.04 of a cent to 96.93 cents US.
U.S. futures also indicated little change as the Dow Jones industrial futures ahead four points to 10,091, the Nasdaq futures were up 2.8 points to 1,823.8 while the S&P 500 futures dipped a tenth of a point to 1,079.4.
The July crude contract on the New York Mercantile Exchange shed 52 cents to US$74.96 a barrel following three days of sharp gains on hopes for higher demand after data showed lower crude inventories in the United States.
Investors were also encouraged by a report from the Chinese government Thursday which showed that exports rose a better than expected 48.5% in May, while imports jumped 48.3%.
The news was particularly welcome to investors who had grown concerned that China would inadvertently slow growth too much in an attempt to prevent its economy from overheating, thus hurting the global rebound.
It also shifted investor focus from the European debt crisis and the TSX ended Thursday’s session with a 185-point gain. Other economic data showing lower jobless insurance claims helped send the Dow industrials ahead 273 points.
Other commodity prices were higher with the July copper contract on the Nymex ahead six cents to US$2.92 a pound while the August bullion contract in New York was a dime higher to US$1,222.30 an ounce.
Toronto and New York markets are looking for a slight gain for the week despite disappointment over U.S. job creation during May and worry about how Europe’s fiscal crisis could impact an economic rebound.
However, U.S. retail sales statistics coming out later in the morning will be crucial for market movements ahead of the weekend. The data is key because U.S. consumer spending accounts for three quarters of the country’s economy and a fifth of global economic activity.
The Commerce Department is expected to report retail sales rose 0.2% in May, according to economists polled by Thomson Reuters. While it would be another slow month of growth, it still shows sales are climbing.
In Asia, Japan’s benchmark Nikkei 225 stock average was unfazed by a blunt warning from the country’s new prime minister, Naoto Kan, who said Japan could face a Greece-like fiscal crisis. The index gained 1.7%.
Japan is on firmer financial footing than Greece because most of its debt is held domestically and Kan’s statements appeared designed to push forward his agenda, which may involve raising taxes.
Elsewhere, Hong Kong’s Hang Seng climbed 1.2%.
London’s FTSE 100 index was up 0.64%, Frankfurt’s DAX added 0.03% while the Paris CAC 40 gained 0.9%.
Investors also took in earnings from the Canadian health sector.
Drug maker Patheon Inc. (TSX:PTI) posted a US$10.9-million profit or 8.4 cents per share for its latest quarter. Revenue was US$175.4 million, about 5% higher than the year-earlier comparable figure.
Helix BioPharma Corp. (TSX:HBP) increased its quarterly loss slightly to $4.2-million in the three months ended April 30 as the company’s research expenses continued to surpass revenues. The loss amounted to seven cents per share and compared with $4.1 million or eight cents per share in the third quarter of fiscal 2009.