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TH: Markets mixed on trade numbers, lower commodities
 
Markets opened mixed Friday as oil and gold prices fell back and trade numbers showed the deficit widened in the U.S., but improved in Canada.

The Toronto Stock Exchange's benchmark index, the S&P/TSX composite, fell 28.95 points, or 0.25 per cent, to 11,331.81.

The Canadian dollar was trading at 95.09 cents U.S. early Friday, after closing at 94.69 cents U.S. on Wednesday.

Gold fell to $1,105.40 U.S. an ounce from its previous close of $1,106.60 U.S. an ounce.

The price of oil was down to $76.26 U.S. a barrel after its previous close of $76.94 U.S..

Canada's trade deficit with the rest of the world narrowed more than expected in September as exports jumped and imports edged lower, Statistics Canada said Friday. The deficit fell to $927 million during the month, better than the $1.8 billion expected and down from a deficit of nearly $2 billion in August.

"Overall, this report was much better than expected and given the surge in real net merchandise exports, it suggests net trade will provide a major boost to Canadian economic activity in September . . . we continue to expect a positive third-quarter GDP number," said Millan Mulraine, economics strategist at TD Securities.

More than 128,000 new vehicle were sold in Canada in September, a 1.2-per-cent increase over the previous month, Statistics Canada said in its monthly report on vehicle sales Friday. The federal agency said North American-built cars accounted for the majority of the new sales with more than 64,000 units being sold.

Toy company Mega Brands returned to profit in the third quarter it said Friday, after a costly recall and winning a settlement with former business partners. The Montreal-based company said it earned $72 million, or $1.22 a share, in the third quarter, compared with $122.1 million, or $3.34 a share, a year earlier. Its shares were up almost 17 per cent to $1.

Montreal-based Groupe Aeroplan Inc. which runs Air Canada's frequent flyer program, said profit fell to $18.8 million, or nine cents a share in the third quarter from $35 million, or 18 cents a share a year ago. Its shares were up six cents to $9.86.

In the U.S., the Dow Jones industrial average rose 26.15 points, or 0.26 per cent, to 10,223.62 and the Nasdaq composite index gained 5.47 points, or 0.25 per cent, to 2,154.49 just after the bell.

The U.S. trade deficit widened more than expected to $36.5 billion in September from $30.8 billion in August. The increase was due to imported oil and autos, the Commerce Department said Friday.

"Overall, the decline in the U.S. trade balance is not as bad as it sounds, as it suggests that domestic demand is beginning to come back online. . . . as the economic recovery continues its trajectory, we do expect to see export volumes rise in addition to improving import numbers. For now, this particular report is a mathematical drag on the revision to third-quarter GDP," said Ian Pollick, economics strategist at TD Securities.

Overseas markets were mixed. The Euro area emerged from recession in the third quarter as real GDP grew 0.4 per cent, data on Friday showed. The figure was slightly below expectations, but Germany, France and Italy all grew in the quarter. Germany led with real GDP up 0.7 per cent.

London's FTSE was up 11.31 points, or 0.21 per cent, to 5,287.81 at midday. Frankfurt's DAX gained 2.32 points, or 0.04 per cent, to 5,666.28, and the Paris CAC lost 13.86 points, or 0.36 per cent, to 3,794.21.

In Asia, Tokyo's Nikkei stock average closed down 34.18 points, or 0.35 per cent, to 9,770.31, and Hong Kong's Hang Seng index gained 156.06 points, or 0.7 per cent, to 22,553.63.

On Thursday, the S&P/TSX fell 78.99 points, or 0.69 per cent, to 11,360.76. The Dow fell 93.79 points, or 0.91 per cent, to 10,197.47 and the Nasdaq composite index closed at 2,149.02, down 17.88 points, or 0.83 per cent.

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