TSX May Struggle To Sustain Gains At Open - Canadian Commentary

(RTTNews) - Canadian stocks are poised for a mixed open Friday, after moving higher in the past four straight sessions, amid flat commodities and varied cues from the global equity markets. Asian stocks ended mixed overnight, with gains tempered by nagging concerns about China's economic growth after China's Finance Minister Lou Jiwei cautioned the economy will likely grow at a slower pace than the government's official growth target for the year.

Meanwhile, the European markets are moderately higher as the euphoria unleashed by Federal Reserve Chairman Ben Bernanke's dovish remarks on Wednesday continued to have some influence on the market.

U. S. stock futures were pointing to a flat open.

On Thursday, the S&P/TSX Composite Index extended gains for a fourth session, adding 186.33 points or 1.51 percent to 12,493.26.

The price of crude oil was ticking higher Friday morning as traders await fresh triggers. Supply disruptions in the Middle East support oil prices. Yesterday, oil leveled off from its 16-month high after the International Energy Agency projected increased supply from sources outside the Organization of Petroleum Exporting Countries, which could outstrip demand. The International Energy Agency forecast supply from non-OPEC countries to grow 1.3 million barrels a day next year, with supplies to rise 1.2 million barrels a day this year. The agency also lifted its global oil demand forecast for 2013 and has forecast demand to grow by 1.2 mbd in 2014.

Crude for August rose $0.65 to $105.56 a barrel.

The price of gold was moving lower Friday morning as the US dollar steadied after recent dips. Gold for August delivery eased $6.90 to $1,273.00 an ounce.

In corporate news from Canada, financial services provider Scotiabank (BNS.TO) said it has withdrawn its application to buy a 19.99 percent stake in the Bank of Guangzhou or BGZ. Since announcing the proposed investment in September of 2011.

Specialty and packaging papers company Domtar Corp. (UFS.TO) reported that it expects second-quarter sales to be $1.312 billion and estimates the operating loss to be between $30 million and $35 million.

Bio pharmaceutical company Medicago Inc. (MDG.TO) said it would be acquired by Mitsubishi Tanabe Pharma Corp. or MTPC for C$1.16 cash per share. The purchase price represents 22.1 percent premium to the latest closing price of C$0.95 and 46.8 percent premium over the 30-day volume weighted average prices of C$0.79 on the TSX.

Gold production and exploration company Orosur Mining Inc. (OMI.TO) announced the appointment of three new Directors to the Board of the company, with immediate effect. The company also appointed Gustavo Licandro as its interim Chief Financial Officer, with immediate effect.

Expedited bill payment company TIO Networks Corp. (TNC.V) said it would acquire Globex Financial Services Inc., and its operating business Global Express Money Orders Inc. Globex is a bill payment services provider to some of the largest utilities in the U.S.

In economic news from the U.S. the Labor Department said its producer price index rose by 0.8 percent in June following a 0.5 percent increase in May. Economists had been expecting the price growth to match the increase seen in the previous month. Excluding food and energy prices, core producer prices edged up by 0.2 percent in June after inching up by 0.1 percent in May. The increase in core prices matched economist estimates.

Elsewhere, euro zone industrial production declined 0.3 percent month-on-month in May, in line with expectations, reversing April's 0.5 percent rise, data from Eurostat showed. The decline was driven by a 1.5 percent fall in capital goods output and 2.3 percent decrease in durable consumer goods. On a yearly basis, industrial production slipped 1.3 percent, more than double the 0.6 percent drop seen in April. The annual rate of decline matched economists' expectations.