Canadian Stocks Are Rising As Commodities Rebound -- Canadian Commentary

(RTTNews) - The Canadian stock market is up modestly in early trade Friday, extending its gains from the previous three trading sessions. The market is turning in more of a mixed performance this morning. However, strong gains in gold, mining and energy stocks are outweighing weakness in other sectors.

Markets in Europe are turning in a mixed performance on the last day of the trading week. Investors are playing it cautious after yesterday's strong rally.

Markets in the United States are trading modestly to the downside this morning. Investors appear to be locking in some profits after the strong rebound in stocks during the previous 2 trading sessions. Investors are also waiting for further clues on the interest rate outlook as Federal Reserve officials continue their annual meeting in Jackson Hole, Wyoming.

While the Commerce Department released a report on Friday showing that U.S. personal income increased in line with economist estimates in the month of July, the report also showed that personal spending rose by slightly less than expected.

The report said personal income rose by 0.4 percent in July, matching the increases seen in the three previous months as well as the consensus estimate.

Meanwhile, the Commerce Department also said personal spending increased by 0.3 percent for the second consecutive month. Economists had expected spending to climb by 0.4 percent.

Potentially reflecting the recent sell-off on Wall Street, the University of Michigan released a report on Friday showing a bigger than previously estimated drop in U.S. consumer sentiment in the month of August.

The report said the final reading on the consumer sentiment index for August came in at 91.9 compared to the preliminary reading of 92.9. The index is down from 93.1 in July. The downward revision came as a surprise to economists, who had expected the index to be upwardly revised to 93.0.

The benchmark S&P/TSX Composite Index is up 21.05 points or 0.15 percent at 13,787.82.

On Thursday, the index closed up 385.08 points or 2.88 percent, at 13,465.67. The index scaled an intraday high of 13,845.66 and a low of 13,061.90.

The Gold Index is gaining 4.04 percent. Gold is up Friday morning following modest losses in the previous few sessions. The weaker than expected read on U.S. consumer confidence seems to be adding to the yellow metal's appeal.

Yamana Gold (YRI.TO) is higher by 4.42 percent and B2Gold (BTO.TO) is gaining 5.19 percent. Kinross Gold (K.TO) is advancing by 4.41 percent and Royal Gold (RGL.TO) is rising by 3.25 percent. IAMGOLD (IMG.TO) is climbing by 6.70 percent and Barrick Gold (ABX.TO) is up 5.41 percent. Eldorado Gold (ELD.TO) is higher by 4.03 percent and Goldcorp (G.TO) is increasing by 2.82 percent.

The Energy Index is climbing by 3.70 percent. Crude oil prices are slightly higher Friday morning, after rising the most in six years during the previous session. Futures skyrocketed yesterday when the Wall Street Journal reported Venezuela wants an emergency OPEC meeting to discuss cutting production.

Cenovus Energy (CVE.TO) is rising by 4.96 percent and Canadian Natural Resources (CNQ.TO) is higher by 3.44 percent. Encana (ECA.TO) is increasing by 5.97 percent and Suncor Energy (SU.TO) is advancing by 2.33 percent. Enbridge (ENB.TO) is gaining 0.72 percent and Pacific Exploration & Production (PRE.TO) is climbing by 5.47 percent. Crescent Point Energy (CPG.TO) is surging by 6.78 percent and Canadian Oil Sands (COS.TO) is adding 2.66 percent.

The Diversified Metal and Mining Index is rising by 3.63 percent. HudBay Minerals (HBM.TO) is gaining 3.19 percent and Capstone Mining (CS.TO) is rising by 5.00 percent. First Quantum Minerals (FM.TO) is advancing by 4.22 percent and Teck Resources (TCK-A.TO) is up 5.36 percent. Lundin Mining (LUN.TO) is higher by 0.47 percent and Sherritt International (S.TO) is increasing by 4.50 percent.

The Capped Materials Index is also up 2.26 percent. Franco-Nevada (FNV.TO) is gaining 3.50 percent and Agnico Eagle Mines (AEM.TO) is up 4.48 percent. Silver Wheaton (SLW.TO) is advancing by 4.16 percent.

The Capped Health Care Index is climbing by 0.80 percent. Concordia Healthcare (CXR.TO) is advancing by 1.95 percent and Extendicare (EXE.TO) is gaining 1.50 percent. Valeant Pharmaceutical International (VRX.TO) is also rising by 0.25 percent.

The Capped Industrials Index is up 0.56 percent. Canadian Pacific Railway (CP.TO) is gaining 1.19 percent and Bombardier (BBD-A.TO) is adding 4.62 percent. AutoCanada (ACQ.TO) is rising by 5.85 percent and Finning International (FTT.TO) is up 3.06 percent.

The Capped Information Technology Index is adding 0.16 percent. Sierra Wireless (SW.TO) is rising by 0.67 percent and BlackBerry (BB.TO) is increasing by 1.90 percent. Descartes Systems Group (DSG.TO) is also up 0.59 percent.

The heavyweight Financial Index is falling by 0.86 percent. National Bank of Canada (NA.TO) is decreasing by 2.22 percent and Royal Bank of Canada (RY.TO) is declining by 1.28 percent. Bank of Montreal (BMO.TO) is losing 1.32 percent and Toronto-Dominion Bank (TD.TO) is down 0.95 percent. Canadian Imperial Bank of Commerce (CM.TO) is lower by 0.63 percent.

Bank of Nova Scotia (BNS.TO) is weakening by 1.58 percent, after its third quarter profit of C$1.45 per share matched expectations. The bank also declared a quarterly dividend of C$0.70 per share, higher than last year's by C$0.02 per share.

The Capped Telecommunication Services Index is declining by 0.59 percent. TELUS (T.TO) is down 1.22 percent and BCE (BCE.TO) is losing 0.99 percent.

On the economic front, profits earned by Chinese industrial enterprises decreased in July after rising in the previous month, figures from the National Bureau of Statistics showed Friday. Industrial profits fell 2.9 percent year-over-year to CNY 471.56 billion in July following a 0.3 percent rise in the preceding month.

Eurozone economic sentiment improved for a second straight month to set a fresh four-year high in August, led by domestic demand even as morale weakened in the industrial sector due to concerns over a stronger euro and a possible sharp slowdown in China.

The economic sentiment index rose to 104.2 from 104 in July, the European Commission said, while economists had forecast the indicator to fall to 103.8. The score was the highest since June 2011, when the index was 106.0.

German consumer prices rose faster-than-expected in August, preliminary data from Destatis showed Friday. The consumer price index rose 0.2 percent year-on-year, same as in July. Economists had expected 0.1 percent gain. The measure climbed for a seventh month running.

French producer prices continued the decreasing trend in July, figures from the statistical office INSEE revealed Friday. Producer prices for the French market fell 1.6 percent year-over-year in July, but slower than previous month's 1.9 percent drop.

Consumer confidence in the United Kingdom jumped in August, data collecting website GfK said on Friday, as its index climbed to a reading of +7. That beat forecasts for +4, which would have been unchanged from the July reading.

House prices in England and Wales climbed at a slower pace in July, data from the Land Registry showed Friday. The house price index rose 4.6 percent year-over-year in July, slower than previous month's 4.9 percent climb. In May, prices had risen 4.5 percent.

In commodities, crude oil futures for September delivery are up $1.18 or 2.77 percent at $43.74 a barrel.

Natural gas for September is up 0.042 or 1.58 percent at $2.706 per million btu.

Gold futures for December are up $14.40 or 1.28 percent at $1,137.00 an ounce.

Silver for September is up $0.183 or 1.27 percent at $14.60 an ounce.