Stocks on Canada's biggest index flatlined by noon ET Friday, after inflation figures came in at a two-year low.
The S&P/TSX Composite Index docked 3.84 points to approach noon Friday at 11,404.48, after Thursday's 350-point-plus loss.
The Canadian dollar was up 0.31 to 97.47 cents U.S.
While several gold stocks made headway, Centerra Gold tumbled 22% after announcing Kyrgyz parliament discussed compliance issues related to the company's Kumtor gold project.
Canadian Pacific Railway said it signed a multi-year deal with U.S. Silica Holdings Inc to transport drilling sand from the U.S. company's mine in Sparta, Wisconsin. CP shares dipped 65 cents to $73.60
Theratechnologies Inc. said its European partner Ferrer Internacional SA is withdrawing the marketing application for tesamorelin, a drug to reduce excess abdominal fat in HIV-infected patients, after a health committee raised safety concerns. Theratechnologies shares plummeted $1.10, or 57.9%, by noon to 80 cents.
Fibrek Inc. said a Quebec court granted it an order to hold a shareholders' meeting for voting on the company's proposed takeover by Resolute Forest Products Inc. Fibrek shares were unchanged at 87 cents, and Resolute gave back six cents to $11.80.
Indian energy major Reliance Industries and its partners BP and Niko Resources plan to spend $4 billion to develop satellite gas fields off India's east coast. Niko shares clicked 19 cents, or 1.4%, to $13.40.
On matters economic, Statistics Canada says annual inflation tumbled to 1.2% last month, the lowest the consumer price index reading since June 2010.
ON BAYSTREET
The TSX Venture Exchange dropped 12.44 points to 1,204.91. The Nasdaq Canada index ducked back 1.76 points to 360.83
Of the 14 Toronto subgroups, eight remained higher at midday. Health-care stocks were healthier by 1.6%, while financials grew 0.5%, and telecoms gained 0.4%.
Gold and materials stocks weighed most heavily on the half-dozen laggards, dropping 1.3% of their strength each. Metals and mining issues demurred 0.7%.
ON WALLSTREET
U.S. stocks bounced back Friday, one day after fears of slow growth and bank downgrades sent stocks spiraling downward.
The Dow Jones Industrials improved 46.10 points to break for lunch at 12,619.70, after being walloped 250 points Thursday.
The S&P 500 added 5.12 points, at 1,330.63. The Nasdaq Composite Index gained 14.80 points to 2,873.89
The downgrades included five major U.S. banks -- Citigroup Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase.
Bank stocks, which sold off ahead of the downgrades, were among the biggest gainers in Friday's broad rally.
Elsewhere, shares of transportation company Ryder Systems slid nearly 12% after company lowered its earnings outlook for the second quarter and fiscal year 2012, citing declining demand for its commercial rental vehicles.
Shares of Darden Restaurants fell after the operator of Red Lobster and Olive Garden warned than earnings and revenue in the current fiscal year will fall short of estimates.
Cruise line operator Carnival reported earnings that topped estimates and issued an upbeat outlook for the year.
Meanwhile, worries about Spain persist after an independent audit, released Thursday, found that Spanish banks need up to €62 billion to restore stability to the country's financial sector.
And Germany, the healthiest and largest euro-zone economy, may start to draw some attention. The German Ifo business confidence index fell to its lowest level in more than two years -- worse than expected.
The news comes one day after a purchasing managers index showed conditions deteriorating for the second month, with output declining at the fastest rate in three years.
There were no economic reports due out of the U.S. today.
The price on the benchmark 10-year U.S. Treasury sagged, raising yields to 1.67% from Thursday's 1.62%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil tacked on $1.30 to $79.49 U.S.
Gold futures for August delivery rose $3 to $1,568.50 U.S. an ounce.
