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TSX holds early gains
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CBC News
Higher commodity prices and a strong inflation report accompanied a triple-digit gain on the Toronto Stock Exchange on Friday.
The S&P/TSX composite index closed up 119 points, or one per cent, to 11,949. It had earlier been roughly 150 points higher earlier in the day.
The main data on Friday was a Statistics Canada report released at 7 a.m. ET that showed consumer prices increased at an annual pace of 3.2 per cent over the 12 months ended in September.
The loonie gained almost half a cent immediately following the news, and stayed at that level through the day. The Canadian dollar was worth 99.34 cents US late in the afternoon, up 0.82 cents.
Commodities rise
Despite the strong inflation showing, analysts noted that price pressures are moderating, because gas and food prices were the main driver of the CPI uptick.
"With the gradual deceleration in gasoline price inflation that began in the summer likely to continue, the headline rate is forecast to fall in the fourth quarter," RBC assistant chief economist Dawn Desjardins said.
"Additionally, the economy's slower-than-expected second-quarter performance will limit price pressures in the near term."
Investors are now turning their attention back to European debt worries. German, French and EU officials will hold a key meeting over the weekend aimed at presenting a united front against the crisis.
In addition to Sunday's summit of eurozone leaders, a second meeting will be held by Wednesday at the latest.
Europe's two biggest economies are at loggerheads over how to make best use of the bailout fund, the so-called European Financial Stability Facility, or EFSF. While France is proposing to turn it into a bank that would have access to unlimited credit from the European Central Bank, Germany appears reluctant to sanction such a move.
ScotiaMcleod wealth adviser Chris Kuflik said markets would be trending higher were it not for the persistent gloom over Europe. "I don't know if they get how grave the situation is if they don't do anything," he said.
Commodities were also higher, with oil rising $1.43 to $87.49 US a barrel and gold gaining nearly $20 an ounce to trade at $1,642 US.
New York markets were also higher, with the Dow Jones industrial average up 267 points, or 2.3 per cent, to 11,809. The broader S&P 500 was up 23 points, or 1.9 per cent, to 1,238.
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