European markets are on the rise Friday after European Union (EU) leaders agreed to breakthrough measures to fight the crippling Eurozone sovereign debt crisis. At the EU summit in Brussels, the leaders agreed to allow the recapitalization of banks through the European Financial Stability Facility and the European Stability Mechanism and also to work on a growth package to revive the Eurozone's flagging recovery. The agreement saw Spainish and Italian 10-year borrowing costs fall below seven per cent.
Also noteworthy, EU leaders agreed to back a Eurozone roadmap heading towards fiscal union. The proposed 10-year plan seeks to create a European treasury that would have power above and beyond national budgets. Not all EU nations are keen on the idea.
Asian bourses jumped on Friday on word of the EU's agreement as did the euro currency. Expectations were low for any real resolutions to come from the Brussels accord but investors are pleasantly surprised by the news.
Prior to the TSX open, here's what you should know:
*U.S. futures point to a higher open, buoyed by the EU's latest fiscal agreement. Futures for the S&P 500, the Dow Jones Industrial Average and the Nasdaq 100 rose between 1.0 to 1.4 per cent.
*Crude oil prices are on the climb. Benchmark oil for August delivery was up US$1.60 at $79.29 a barrel and Brent crude for August delivery was up $1.30 at $92.66 per barrel.
*Gold prices are also rising but spot gold is still on track for its worse quarter since the second quarter of 2004. Spot gold was up 1.3 per cent at $1,570.20 an ounce while U.S. gold futures for August delivery were up $20.20 an ounce at $1,570.60.
*The Canadian dollar closed down 0.69 of a cent on Thursday to trade at 96.82 cents US. The S&P/TSX Composite Index will be closed on Monday, July 2 to observe Canada Day.
*Two reports are forthcoming from Statistics Canada today including a Gross Domestic Product by Industry report for April 2012 and the Industrial Product and Raw Materials Price Indexes for May 2012.
*Stateside on the economic data calendar for Friday, the U.S. Commerce Department releases May personal income and consumption data and the Institute of Supply Management Chicago releases its June index of manufacturing activity.