North American markets are higher Friday despite a weak U.S. trade report and higher oil prices. The Commerce Department reported that the U.S. current account deficit hit a new high.

Light, sweet crude for August delivery has edged up 3¢ to $38.84 US a barrel.

At midday, Toronto’s S&P/TSX composite index is ahead 45.56 points at 8,543.312.

The metals and mines sector is the strongest group, up almost 2% on higher metal prices. Inco is ahead $1.17 to $47.27 and Falconbridge is up 89¢ to $33.64.

On the TSX, the gold sector was also stronger as a weaker U.S. greenback has the price of gold up US$6.80 to US $395.50 US an ounce in New York. Placer Dome is up 44¢ to $22.94, while Bema Gold has added 10¢ to $3.77.

The information technology is higher as Nortel Networks continues to benefit from comments by Cisco Systems CEO John Chambers that his company would consider an alliance with Canada’s biggest high tech company. Nortel shares are up 29¢ at $6.45 after jumping 7.3% Thursday.

Also in the sector, Celestica is ahead 45¢ to $25.70.

The junior S&P/TSX venture composite index is up 15.16 points to 1,555.53.

On Wall Street, market averages are higher even after news that the U.S. current account deficit swelled to an all-time monthly high of US$144.9 billion in the first quarter of this year. The deficit figure was almost US$5 billion larger than expected.

The Dow Jones industrial average is up 50.04 points to 10,427.56. The tech-heavy Nasdaq is ahead was up 9.16 points at 1,992.83 and the S&P 500 index is up 5.51 points at 1,137.56.

Friday is a “triple-witching” day on Wall Street — when options and futures contracts expire — which customarily means increased volatility in individual stock prices. Volume was substantially higher in early trading than at any time over the last two weeks.