TORONTO, Aug 14 (Reuters) - Toronto’s main stock market index could extend its gains to a third straight session on Friday as firm gold and energy prices prop up the resource-heavy market.
Investors will also take time to digest key economic data before the market opens.
Economists in a Reuters survey expect the U.S. Consumer Price Index to be unchanged compared with a 0.7 percent increase in June. Excluding volatile food and energy items, CPI is expected to rise 0.1 percent versus a 0.2 percent increase in June. [nN12131654]
Also, the Federal Reserve releases industrial production and capacity utilization data for July. Economists expect a 0.3 percent rise in production and a reading of 68.3 percent for capacity utilization. In June, production fell 0.4 percent and capacity utilization was 68.0 percent.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 1.6 percent to 10,825.56 on Thursday as surprisingly strong European economic data buoyed sentiment and commodity prices, sparking a resource-led rally. [nN13264987].
Here is some of the news that may affect the market.
Oil headed toward $71 a barrel on on Friday, rising for the fourth day, on growing confidence the global economy was exiting the worst of recession in decades and beginning to boost energy demand. [nSP445199]
Gold rose in Europe on Friday as the dollar edged lower versus a basket of currencies ahead of a raft of U.S. data due later in the session, while oil and equities extended gains on hopes for an economic recovery. [nLE501497]
CANADA BANK EYES ALLIED IRISH BANKS
A Canadian bank has made a preliminary approach about a potential investment in Allied Irish Banks ALBK.I, two sources familiar with the matter said on Friday. [nWLA1241]
Groupe Aeroplan Inc AER.TO, which operates Air Canada’s ACa.TO frequent flier program, posted a lower quarterly profit on Friday and said it expects a decline in consolidated gross billings for the year. [nBNG449853]
The federal government in Berlin and the states where Opel has plants are only prepared to offer financing aid if Canada’s Magna MGa.TO wins the battle for the carmaker, a senior ally of German Chancellor Angela Merkel said. [nLE608484]
Auto parts maker Linamar Corp (LNR.TO) reported a bigger than expected quarterly loss on Thursday, hit by “excessive production shutdowns,” as well as restructuring costs and other charges. [nN13228577]
* RBC RAISES GILDAN ACTIVEWEAR (GIL.N) PRICE TARGET TO $21 FROM $18; RATING SECTOR PERFORM
* UBS RAISES CANADIAN TIRE CORP (CTCa.TO) PRICE TARGET TO C$67 FROM C$56; RATING BUY
* GENUITY RAISES LINAMAR CORP (LNR.TO) PRICE TARGET TO C$18 FROM C$14; RATING BUY
Other research actions: For additional research, please double click [RCH/CA]
($1=$1.09 Canadian) (Reporting by Scott Anderson; Editing by Padraic Cassidy)