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Stocks higher on signs of recovery
 
 
July 31, 2009 10:01 AM
 
 
North American markets were slightly higher early Friday after data 
showed both the Canadian and U.S. economies continued to contract but 
were showing signs of recovery.

The Toronto Stock Exchange's benchmark, the S&P/TSX composite index, 
was up 29.73 points, or 0.28 per cent, to 10,705.45 shortly after the 
start of trading.

The Canadian dollar fell to 92.22 cents U.S. from Thursday's close of 
92.23 cents U.S. after Statistics Canada said the country's economy 
declined by a more-than-expected 0.5 per cent in May � led by declines 
in the manufacturing and energy sectors.

Charmaine Buskas, senior economics strategist at TD Securities, said: 
"Overall, it is clear that activity throttled back significantly in 
May."

However, Douglas Porter, deputy chief economist at BMO Capital Markets, 
said "early results from June are much more positive, and we believe 
next month's release will show something closer to flat."

The price of oil fell to $65.93 U.S. a barrel from $66.94 U.S. at the 
end of trading the previous day. Gold rose to $938.30 U.S. an ounce 
from $937.30 U.S.. In the U.S., the Dow Jones industrial average was up 
37.3 points, or 0.48 per cent, to 9,192.27. The Nasdaq composite index 
rose 5.05 points, or 0.26 per cent, to 1,989.15.

Before the markets opened, the Commerce Department said the U.S. 
economy declined at an annual rate of one per cent in the second 
quarter � a much slower pace than previous quarters.

"The dramatic fall-off in the pace of U.S. economic decline is clearly 
a welcomed sign that the intense economic recession may be nearing its 
end," said Millan Mulraine, economics strategist at TD Securities, 
adding "there is some hope that economic activity may rebound in short 
order."

Overseas markets were mixed on Friday. London's FTSE 100 index was down 
11.88 points, or 0.26 per cent, to 4,619.73 at midday Friday. In 
Frankfurt, the DAX was down 34.58 points, or 0.6 per cent, to 5,326.16, 
while the Paris CAC was down 15.59 points, or 0.45 per cent, to 
3,419.90.

In Asia, Tokyo's Nikkei stock average closed up 191.62 points, or 1.89 
per cent, to 10,356.83. Hong Kong's Hang Seng index gained 339.25 
points, or 1.68 per cent, to 20,573.33.

On Thursday, the S&P/TSX closed at 10,676.72, up 2.12 per cent, or 
221.39 points. The Dow Jones industrial average settled at 9,154.46, up 
83.74 points, or 0.92 per cent, while the Nasdaq finished at 1,984.30, 
up 16.54 points, or 0.84 per cent.