Canadian Stocks Are Up Despite Falling Commodity Prices -- Canadian Commentary

(RTTNews) - The Canadian stock market is adding to its gains from the previous two sessions Friday morning. The gains of the previous sessions stemmed from a surprise rate cut by the Bank of Canada on Wednesday and the larger than expected stimulus package announced by the European Central Bank on Thursday. Most sectors of the Canadian market are in the green Friday, with the exception of mining, metal and gold stocks. These sectors are under pressure due to a drop in commodity prices. The price of gold is notably lower, dropping back below the $1300 mark. Meanwhile, energy prices are up modestly as the price of oil hovers around $46 per barrel.

Markets in Europe are in positive territory at the end of the trading week, but the U.S. markets have struggled to find direction and are currently down. Corporate earnings reports have had a negative impact on the U.S. markets, especially the profit warning from United Parcel Services.

The benchmark S&P/TSX Composite Index is up 33.96 points or 0.23 percent at 14,797.94. The index is off the intraday high of $14,853.30.

On Thursday, the index closed up 203.56 points or 1.40 percent, at 14,763.98. The index scaled an intraday high of 14,792.49 and a low of 14,589.46.

The Diversified Metal and Mining Index is falling by 3.70 percent. Lundin Mining (LUN.TO) is declining by 1.93 percent and HudBay Minerals (HBM.TO) is down 4.55 percent. First Quantum Minerals (FM.TO) is sinking by 7.77 percent and Teck Resources (TCK.TO) is down 3.57 percent.

Starcore International Mines (SAM.TO) is climbing by 8.33 percent. The company has agreed to purchase all shares of Creston Moly from Deloitte Restructuring.

The Gold Index is losing 2.31 percent. Kinross Gold (K.TO) is down 4.49 percent and Yamana Gold (YRI.TO) is losing 2.84 percent. Eldorado Gold (ELD.TO) is lower by 6.41 percent and Royal Gold (RGL.TO) is decreasing by 0.78 percent. Goldcorp (G.TO) is dropping by 2.3. percent and B2Gold (BTO.TO) is lower by 1.92 percent. IAMGOLD (IMG.TO) is also declining by 7.77 percent.

The Capped Materials Index is also down 2.14 percent, mostly due to the drop in gold prices. Franco-Nevada (FNV.TO) is losing 2.86 percent and Barrick Gold (ABX.TO) is down 2.21 percent. Silver Wheaton (SLW.TO) declining by 1.73 percent and Agnico Eagle Mines (AEM.TO) is falling by 2.44 percent. Potash Corp. of Saskatchewan (POT.TO) also down 0.60 percent.

The Capped Industrial Index is lower by 0.68 percent. Canadian Pacific Railway (CP.TO) id down 2.47 percent.

The Energy Index climbing by 1.76 percent. Suncor Energy (SU.TO) is up 1.59 percent and Canadian Natural Resources (CNQ.TO) is higher by 1.74 percent. Encana (ECA.TO) is gaining 1.45 percent and Pacific Rubiales Energy (PRE.TO) is adding 4.27 percent.

Cenovus Energy (CVE.TO) is increasing by 0.70 percent and Canadian Oil Sands (COS.TO) is advancing 2.72 percent. Bonterra Energy (BNE.TO) is surging by 4.13 percent and Talisman Energy (TLM.TO) is up 0.86 percent.

The Financial Index climbing 1.22 percent. Canadian Imperial Bank of Commerce (CM.TO) is increasing by 0.74 percent and Toronto-Dominion Bank (TD.TO) is higher by 1.52 percent. National Bank of Canada (NA.TO) is gaining 2.23 percent and Bank of Nova Scotia (BNS.TO) is climbing by 1.24 percent. Royal Bank of Canada (RY.TO) is gaining 2.13 percent and Bank of Montreal (BMO.TO) is adding 0.94 percent.

The Information Technology Index gaining 1.18 percent. BlackBerry (BB.TO) is climbing by 3.29 percent and Sierra Wireless (SW.TO) is higher by 0.79 percent.

The Health Care Index is up 0.71 percent. Extendicare (EXE.TO) is gaining 1.55 percent and Valeant Pharmaceuticals International (VRX.TO) is rising by 0.18 percent. Catamaran (CCT.TO) is also up 0.09 percent.

DiagnoCure (CUR.TO) is sinking by 15.38 percent. The company reported a fourth quarter loss of C$0.01 per share, compared to the loss of $0.03 per share last year.

Atlantic Power (ATP.TO) is rising by 1.49 percent, after the company appointed James Moore Jr. as its new President and CEO.

On the economic front, Statistics Canada reported Friday morning that the consumer price index climbed by 1.5 percent in December, compared to the 2.0 percent in November. The result matched the expectations of economists.

Existing home sales in the U.S. rose roughly in line with economist estimates in the month of December, according to a report released by the National Association of Realtors on Friday, with sales rebounding from the steep drop seen in November.

NAR said existing home sales rose 2.4 percent to a seasonally adjusted annual rate of 5.04 million in December after tumbling 6.3 percent to a downwardly revised 4.92 million in November. Economists had expected existing home sales to climb to an annual rate of 5.05 million from the 4.93 million originally reported for the previous month.

Reflecting positive contributions from a majority of components, the Conference Board released a report on Friday showing that its index of leading U.S. economic indicators rose by slightly more than anticipated in the month of December.

The Conference Board said its leading economic index climbed by 0.5 percent in December following a downwardly revised 0.4 percent increase in November. Economists had expected the index to rise by 0.4 percent compared to the 0.6 percent advance originally reported for the previous month.

Eurozone private sector grew at the fastest pace in five months in January, flash survey data from Markit Economics showed Friday. The composite output index rose more-than-expected to a five-month high of 52.2 in January from 51.4 in December. Economists has forecast it to rise to 51.7 nominally.

Germany's private sector remained in expansion territory in January, signaling a further rise in the private sector output. The flash composite output index rose to 52.6 in January from 52 in December. This was the strongest growth in three months.

The French private sector contracted further at the start of 2015, flash data from Markit Economics showed Friday. The composite output index fell to 49.5 in January from 49.7 in December.

French business confidence remained stable in January, survey data from the statistical office Insee showed Friday. The business confidence index for manufacturers held steady at 99 in January as expected by economists.

British retail sales logged an unexpected growth in December, driven by food sales, while economists were looking for a decline after a rebound in November on Black Friday sales.

The volume of retail sales, including automotive fuel, increased 0.4 percent month-over-month in December, but the growth was slower than the 1.6 percent rise in November, figures from the Office for National Statistics showed Friday. Sales were expected to decline 0.6 percent.

China's manufacturing sector contracted barely in January, the latest survey from HSBC Bank showed on Friday with a PMI score of 49.8. That beat forecasts for 49.5 and was up from 49.6 in December, although it remained below the boom-or-bust line of 50 that separates expansion from contraction.

In commodities, crude oil futures for February delivery are up $0.15 or 0.32 percent at $46.46 a barrel.

Natural gas for February is up $0.14 or 4.94 percent at $2.975 per million btu.

Gold futures for February are down $13.00 or 1.00 percent at $1,287.70 an ounce.

Silver for March is down $0.18 or 0.98 percent at $18.18 an ounce.