TSX Rallies To Highest In Two Months, Powered By Metals -- Canadian Commentary

(RTTNews) - Canadian stocks are set for a sixth straight winning session Friday morning, led by surging metal stocks after a surprise Chinese interest rate cut and hopes of further stimulus from the European Central Bank.

Investors are also digesting data showing an unexpected rise in Canadian consumer prices.

According to Statistics Canada, consumer price inflation rose to 2.4 percent in October, following a 2.0 percent increase in the preceding month. Economists expected inflation to come in at 2.0 percent.

Core CPI was up 2.3 percent last month, compared to 2.1 percent in September.

Oil and gold stocks are moving up, tracking higher crude oil and bullion prices.

The benchmark S&P/TSX Composite Index is up 72.79 points or 0.5 percent at 15,146.94, after rising to 15,184.36, the highest level since September 22. The index is set to end the week with a gain of about 2 percent.

On Thursday, the index ended up 95.03 points or 0.63 percent at 15,075.18.

The Diversified Metals & Mining Index is up over 5.5 percent. First Quantum Minerals (FM.TO) is climbing nearly 9 percent and Teck Resources (TCK.B.TO) is rising 7.7 percent.

Turquoise Hill Resources (TRQ.TO), Lundin Mining Corporation (LUN.TO), HudBay Mineras (HBM.TO), Sherritt International Corporation (S.TO), Major Drilling International (MDI.TO) and Capstone Mining Corporation (CS.TO) are moving up 4 to 5.6 percent.

The Capped Materials Index is up 1.75 percent, with Silver Wheaton Corporation (SLW.TO) and Methanex Corporation (MX.TO) gaining over 1 percent.

Kinross Gold Corporation (K.TO), B2Gold Corp (BTO.TO) and Eldorado Gold Corporation (ELD.TO) are up 1.2 to 3 percent.

The Energy Index is up 2.3 percent. Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Crescent Point Energy (CPG.TO), Encana Corporation (ECA.TO), ARC Resources (ARX.TO) and Canadian Oil Sands (COS.TO) are advancing 2 to 3.5 percent. Husky Energy (HSE.TO) and Tourmaline Oil Corp. (TOU.TO) are up 1.3 percent and 1.75 percent, respectively.

Whitecap Resources (WCP.TO), Legacy Oil + Gas Inc. (LEG.TO), Penn West Petroleum (PWT.TO) and Athabasca Oil Corporation (ATH.TO) are up 3 to 5 percent. Delphi Energy Corp. (DEE.TO) is rising over 13 percent.

The Industrials Index is up 0.6 percent, with SNC-Lavalin Group Inc. (SNC.TO), MacDonald, Dettwiler and Associates Ltd. (MDA.TO) and Finning International Inc. (FTT.TO) gaining 0.7 to 1.5 percent.

Among the big six banks, Royal Bank of Canada (RY.TO) is down 0.4 percent. The bank is shutting down its international client-wealth-management business in the Caribbean and is likely to cut 300 jobs.

Canadian Imperial Bank of Commerce (CM.TO), National Bank of Canada (NA.TO) and Toronto-Dominion Bank (TD.TO) are lower by 0.2 to 0.5 percent, and Bank of Montreal (BMO.TO) is flat, while Bank of Nova Scotia (BNS.TO) is advancing 0.5 percent.

Valeant Pharmaceuticals International, Inc. (VRX.TO) said it has cut its stake in Allergan Inc to 0.1 percent from 9.7 percent. The stock is up nearly 1.5 percent.

In commodities, crude oil futures for January delivery are up $0.55 or 0.73 percent at $76.40 a barrel.

Natural gas for December is down $0.164 or 3.65 percent at $4.326 per million btu.

Gold futures for December are up $12.90 or 1.08 percent at $1,203.80 an ounce.

Silver for December is up $0.356 or 2.21 percent at $16.493 an ounce. Meanwhile, copper is up $0.041 or 1.37 percent at $3.061 per pound.

In a significant move, the People's Bank of China today cut its key lending rate by 0.4 percent to 5.6 percent, to spur economic growth. The deposit rate has been reduced by 0.25 percent to 2.75 percent.

Meanwhile, hopes of additional stimulus from the European Central Bank have increased after the bank's President Mario Draghi said the ECB will expand its asset purchase program if inflation fails to show signs of returning to the targeted level.