By RTT News, October 10, 2013, 11:23:00 AM EDT
(RTTNews.com) - Canadian stocks were trading higher Thursday morning amid hopes for a deal that would temporarily raise the US debt ceiling. House Republican leaders are contemplating advancing a short-term debt limit increase to calm financial markets and buy time for negotiations on broader policy measures, media reports said. President Barack Obama signaled that he is ready to accept a short term debt limit deal without policy conditions.
Asian stocks settled mixed overnight after the minutes of the Federal Reserve's September 17-18 meeting revealed officials struggled with a decision not to taper QE. It was a relatively close call for several members, with some worrying that a delay in tapering asset purchases could undermine the credibility or predictability of monetary policy, the minutes stated.
Meanwhile, European shares are trading firm after the European Central Bank's monthly bulletin reiterated central bank's stance on accommodative monetary policy as long as necessary. The bulletin reaffirmed that the key interest rates would remain at present or lower levels for an extended period of time to support the economic recovery in the region.
The S&P/TSX Composite Index rose 124.02 points or 0.97% to 12,854.34, after adding about 0.30 percent in the previous session.
The price of crude oil was moving higher Thursday morning amid hopes for a deal that would temporarily raise the debt ceiling. Crude for November gathered $1.34 to $102.95 a barrel.
In its monthly Oil Market Report released Thursday, the OPEC nudged up its 2014 global oil demand forecast by 1.0 mbd to reach 90.8 mbd and said non-OECD countries are projected to lead oil demand growth with 1.2 mbd, while OECD consumption is seen continuing to decline but at a lower rate of 0.2 mbd. However, for the year 2013 global oil demand forecast is estimated to average 89.7 mbd, unchanged from its last month's report.
In the oil patch, Paramount Resources (POU.TO) and Imperial Oil (IMO.TO) were up around 2 percent each.
Space hardware subsystems maker COM DEV International Ltd. (CDV.TO) jumped about 5 percent after announcing that it has received contract is in excess of $65 million.
Meanwhile, gold stocks were trading mixed amid weak bullion prices. The price of gold was moving lower Thursday morning with the US dollar trading firm versus a basket of currencies amid hopes for a deal that would temporarily raise the debt ceiling. Gold for December lost $6.80 to $1,300.40 an ounce.
Barrick Gold (ABX.TO), Agnico-Eagle Mines (AEM.TO) and Royal Gold (RGL.TO) were up around 1 percent each, while Goldcorp. (G.TO) and Detour Gold (DGC.TO) slipping about 0.50 percent each
In economic news Statistics Canada said the New Housing Price Index rose 0.1 percent in August, following a 0.2 percent increase in July. Economists expected the index to rise 0.2 percent in August.
From south of the border, the US Labor Department said said initial jobless claims jumped to 374,000, an increase of 66,000 from the previous week's unrevised figure of 308,000. Economists had been expecting jobless claims to edged up to 310,000. The Labor Department said half of the increase in claims was due to a California computer switch. The ongoing government shutdown also contributed to the jump in claims.
Elsewhere, the Bank of England retained its record-low interest rate and the size of quantitative easing at GBP 375 billion on Thursday. The nine-member Monetary Policy Committee headed by Mark Carney decided to keep the key interest rate unchanged at a historic low 0.50 percent.
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