Toronto stocks were higher at midday.getting a boost from gains in energy and mining issues.The S&P/TSX composite index was up 43.36 points, or 0.51%, at 8,536.74. Volume was a heavy 146.6 million shares.

All but one of the TSX’s 10 main groups were higher, with energy issues rising 1.0%, the mining sector up 0.45% and the materials group adding 0.53%.

Energy stocks climbed along with the price of oil on concerns over the impact of Hurricane Ivan on production from the Gulf of Mexico.

Nexen Inc. gained $1.04, or 2.14%, to $49.74 and Precision Drilling Corp. climbed $1.57, or 2.36%, to $68.11.

Shares in Petro-Canada (jumped $2.04%, or 3.31%, to $63.69 a day after the federal government said it would sell its remaining 19% stake in the company.

Mining stocks were lifted by a the bright outlook for base metals demand.

Inco gained 47¢, or 1%, to $47.60, while Falconbridge Ltd. was up 8¢, or 0.24%, at $33.03.

Alcan Inc. gained 51¢, to $57.70.

The junior S&P/TSX Venture composite index was up 0.78 of a point at 1,527.03.

U.S. stocks traded higher as an upbeat outlook from Ford Motor Co.’s and Texas Instruments’ US$1 billion share buyback plan helped offset concern over a surprise dip in consumer sentiment and a rise in oil prices.

The Dow Jones industrial average was up 43.29 points at 10,287.78.

The tech-heavy Nasdaq composite index rose 3.73 points to 1,907.81, buoyed by gains for semiconductor shares.

The S&P 500 was up 4.64 points at 1,128.14.

The Canadian dollar dropped two-thirds of a U.S. cent in early trading Friday after a tame inflation report eased pressure on the Bank of Canada to raise interest rates in coming months.

Ottawa to sell stake in Petro-CanadaInflation rate slips in August

North American markets are likely to open higher Friday as investors respond to a positive earnings outlook for Ford Motor Corp, the federal government’s plan to sell its stake in Petro-Canada, and a favourable report on Canadian inflation.

Ford Motor Co. today boosted its third-quarter earnings outlook even as it disclosed an overhaul of the Jaguar brand, cutting 1,150 jobs.

After markets closed Thursday, the federal government revealed details of the planned sale of its 19% stake in Petro-Canada, setting the stage for the biggest single share sale in Canadian history. The offering, estimated to be worth $3 billion, is expected to close by Sept. 29. Before the announcement Petro-Canada shares closed down 1.22¢ at $61.65.

In today’s economic news, Canada’s annual inflation rate slipped to 1.9% in August, down from the 2.3% recorded in July, Statistics Canada said. A slower rise in the price of gasoline last month led to the smaller overall increase in the cost of the living, StatsCan said.

On Thursday, the U.S. Labor Department reported only a modest 0.1% rise in consumer prices for August. Excluding food and energy, inflation also rose 0.1%.

The inflation data was better than expected. Economists were expecting both inflation gauges to rise by 0.2%

Overnight in Asia, Tokyo’s Nikkei fell 56.87 points, or 0.51%, to 11,082.49 points ahead of a three-day weekend. Japanese financial markets will be closed Monday for a national holiday.

In Hong Kong, the Hang Seng edged up 15.09 points, or 0.1%, to 13,224.94.

Bay Street stocks finished higher Thursday even as the price of oil rose in afternoon trading and Nortel Networks issued a profit warning. Nortel shares fell 43¢, or 8.7%, to $4.49 in heavy trading of 42 million shares.

At the close, the S&P/TSX composite index was up 26.35 points at 8,493.38 on a volume of 240 million shares.

Crude-oil prices turned higher as traders continued to assess Hurricane Ivan’s potential damage to oil and gas facilities in the Gulf of Mexico. Crude for October delivery ended up US30¢ at US$43.88 a barrel, but off a session high of US$44.20.

The junior S&P/TSX Venture composite index edged up 0.47 of a point to 1,526.25.

In New York, the Dow Jones industrial average finished up 13.13 points at 10,244,49.

The tech-heavy Nasdaq composite index rose 7.56 points to 1,904.08, buoyed by a rebound in semiconductor stocks and Internet shares.

The S&P 500 climbed 3.13 points to 1,123.50.