Canadian Stocks Are Rising After Yellen Comments -- Canadian Commentary

(RTTNews) - The Canadian stock market is breaking out in reaction to comments from Federal Reserve Chair Janet Yellen, along with the rest of the global markets this morning. Precious metal prices are surging as an increase in U.S. interest rates appears more likely after Yellen's comments. Gold stocks are the top performing stocks in early action, while rising crude oil prices are also providing a boost to energy stocks.

Markets in the United States were up slightly in cautious trade at the open Friday, but have jumped after Federal Reserve Chairman Janet Yellen stated in her speech that the case for another interest-rate hike has strengthened.

"In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months," Yellen said in a speech prepared for delivery to the Jackson Hole summit.

Markets in Europe have climbed firmly into positive territory Friday afternoon, after struggling in early action. The markets came off their early lows thanks to solid German and French consumer confidence data and have broken out higher after Janet Yellen's highly anticipated speech.

The benchmark S&P/TSX Composite Index is up 93.45 points or 0.64 percent at 14,724.17.

On Thursday, the index closed down up 4.48 points or 0.03 percent, at 14,630.72. The index scaled an intraday high of 14,677.68 and a low of 14,579.64.

The Gold Index is higher by 2.53 percent. Gold prices are rebounding sharply Friday morning, following the losses of the last few sessions.

Barrick Gold (ABX.TO) is gaining 2.24 percent and Goldcorp (G.TO) is climbing 2.51 percent. B2Gold (BTO.TO) is up 3.63 percent and Eldorado Gold (ELD.TO) is adding 4.13 percent. IAMGOLD (IMG.TO) is advancing 2.52 percent and Yamana Gold (YRI.TO) is increasing 3.47 percent.

Kinross Gold (K.TO) is rising 4.10 percent. The company has suspended operations at a mine in Chile due of a dispute involving water use.

The Capped Materials Index is also up 2.27 percent. Agnico Eagle Mines (AEM.TO) is higher by 2.56 percent and Franco-Nevada (FNV.TO) is climbing 2.47 percent. Silver Wheaton (SLW.TO) is advancing 2.95 percent.

The Energy Index is up 1.26 percent. Crude oil prices are rising Friday morning, climbing above $48 a barrel.

Crescent Point Energy (CPG.TO) is up 2.13 percent and Canadian Natural Resources (CNQ.TO) is rising 1.16 percent. Cenovus Energy (CVE.TO) is climbing 1.24 percent and Encana (ECA.TO) is advancing 2.70 percent. Suncor Energy (SU.TO) is increasing 1.02 percent and Husky Energy (HSE.TO) is higher by 1.45 percent. Enbridge (ENB.TO) is also adding 0.58 percent.

The Capped Industrials Index is gaining 0.58 percent. AutoCanada (ACQ.TO) is up 0.57 percent and Finning International (FTT.TO) is adding 1.53 percent. Canadian National Railway (CNR.TO) is increasing 0.54 percent and Canadian Pacific Railway (CP.TO) is climbing 0.92 percent. Bombardier (BBD-B.TO) is higher by 0.49 percent and Air Canada (AC.TO) is rising 0.90 percent.

The Capped Information Technology Index is climbing 0.65 percent. Constellation Software (CSU.TO) is increasing 0.51 percent and BlackBerry (BB.TO) is rising 0.19 percent. Sierra Wireless (SW.TO) is also gaining 1.29 percent.

The heavyweight Financial Index is increasing 0.38 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.73 percent and Canadian Imperial Bank of Commerce (CM.TO) is climbing 0.41 percent. Royal Bank of Canada (RY.TO) is rising 0.61 percent and Toronto Dominion Bank (TD.TO) is adding 0.02 percent. National Bank of Canada (NA.TO) is also gaining 0.36 percent.

Fairfax Financial (FFH.TO) is dipping 0.08 percent after it bought 3.5 million shares of Toronto Star publisher Torstar. Torstar (TS-B.TO) is surging 6.29 percent.

The Capped Telecommunication Services Index is up 0.33 percent. TELUS (T.TO) is climbing 0.46 percent and BCE (BCE.TO) is adding 0.02 percent. Rogers Communication (RCI-B.TO) is rising 0.64 percent and Manitoba Telecom Services (MBT.TO) is higher by 0.16 percent.

The Capped Healthcare Index is declining 0.57 percent. Concordia Healthcare (CXR.TO) is losing 0.52 percent and Valeant Pharmaceuticals International (VRX.TO) is weakening by 1.17 percent.

On the economic front, German consumer sentiment is set to develop positively in September as Brexit vote seems to have caused only temporary uncertainty, survey results from the market research group GfK showed Friday.

The forward-looking consumer climate index rose to 10.2 in September from 10.0 in August. The score was forecast to remain unchanged at 10.0 in September.

France's gross domestic product stagnated as estimated in the second quarter, the second estimate from the statistical office Insee showed Friday. Gross domestic product remained flat from the prior quarter, after expanding 0.7 percent in the first quarter.

France's consumer confidence improved unexpectedly in August, though marginally, figures from the statistical office INSEE showed Friday. The consumer confidence index rose to 97.0 in August from 96.0 in the previous month. Economists had expected the index to remain unchanged at 96.0.

The U.K. economy expanded at a faster pace in the second quarter as previously estimated, in run-up to the EU referendum, the second estimate from the Office for National Statistics showed Friday. Gross domestic product grew 0.6 percent sequentially after rising 0.4 percent in the first quarter. The growth figures matched preliminary estimate published on July 27.

British business investment increased in the three months to June, marking the first growth since the third quarter of last year, figures from the Office for National Statistics showed Friday. Business investment rose 0.5 percent from the first quarter, when it declined 0.6 percent. In the same period last year, business investment grew 1.6 percent.

U.S. economic activity in the second quarter grew by slightly less than initially estimated, according to a report released by the Commerce Department on Friday.

The report said gross domestic product increased by 1.1 percent in the second quarter, reflecting a downward revision compared to the originally reported 1.2 percent growth. The revision matched economist estimates.

Consumer sentiment in the U.S. unexpectedly saw a slight decline in the month of August, according to a report released by the University of Michigan on Friday. The report said the final reading on the consumer sentiment index for August came in at 89.8 compared to the initial estimate of 90.4.

The downward revision came as a surprise to economists, who had expected the index to be upwardly revised to a reading of 90.7.

In commodities, crude oil futures for September delivery are up 0.77 or 1.63 percent at $48.10 a barrel.

Natural gas for September is down 0.013 or 0.46 percent at $2.833 per million btu.

Gold futures for December are up $16.80 or 1.27 percent at $1,341.40 an ounce.

Silver for September is up $0.401 or 2.17 percent at $18.89 an ounce.