North American markets rose early Friday on higher commodity prices and U.S. data showing signs that the manufacturing sector may be improving.
Canada's benchmark index, the S&P/TSX composite, was up 44 points, or 0.36 per cent, to 12,145.80 — after posting losses in the previous three sessions.
The Canadian dollar was trading around 97.91 cents U.S., up from Thursday's close of 96.71 cents U.S..
Oil rose to $76.08 U.S. a barrel from $75.18 U.S. the previous day, while gold was trading at $1,300.30 U.S. an ounce after finishing at $1,296.30 U.S. on Thursday. In the U.S., the Dow Jones industrial average was up 117 points, or 1.1 per cent, to 10,779.96, while the Nasdaq composite index advanced 29 points, or 1.24 per cent, to 2,356.07.
Before the market opening, the Commerce Department said durable goods orders fell by a more-than-expected 1.3 per cent in August, following a revised 0.7 per cent gain the previous month. Excluding transportation, however, orders were up two per cent, following a 2.8 per cent drop in July.
"Though downshifting a tad, business capital spending remains one of the few consistent bright spots on the economic landscape," Sal Guatieri, senior economist at BMO Capital Markets, said in a morning note. "The moderation likely reflects less pent-up demand to replace aging equipment following the strong pace of spending in the past year, as well as uncertainty about whether Congress will pass legislation to accelerate business capital depreciation allowances."
European markets were higher on Friday, with London's FTSE 100 index was up 0.65 per cent at midday and Frankfurt's DAX gained about one per cent.
Earlier Friday, data showed German business sentiment rose unexpectedly in September — reaching the highest level in more than three years — even though companies surveyed for the Ifo report still expect the country's economic growth to slow amid uncertainty over a faltering eurozone recovery.
The CAC 40 in Paris rose 1.10 per cent after France's second-quarter GDP was revised slightly higher to 0.7 per cent. "As long as there is no improvement in unemployment, French households remain fearful and there is no brightening of the international outlook, France's economy remains vulnerable." Alexander Law, chief economist at Xerfi, told Reuters.
In Asia, Hong Kong's Hang Seng index ended up 71.72 points, or 0.33 per cent, to 22,119.43 — its highest close in five months.
The Nikkei stock average in Tokyo finished down 94.65 points, or 0.99 per cent, to 9,471.67 after renewed speculation that Japan had intervened in the market to in an attempt to drive down the yen.
"The Nikkei was only briefly helped by the talk of intervention, especially since it's hard to tell if any such move actually took place," Koichi Ogawa, chief portfolio manager at Daiwa SB Investments, told Reuters.
On Thursday in North America, the S&P/TSX index closed down 45.46 points, or 0.37 per cent, to 12,101.79. The Dow Jones was down 76.89 points, or 0.72 per cent, to 10,662.42 and the Nasdaq composite fell 7.47 points, or 0.32 per cent, to 2,327.08.
