Canadian Stocks On Winning Streak, Inflation Heats Up -- Canadian Commentary

(RTTNews) - Bay Street looks headed for a quiet start Friday, with investors reacting to news that Canadian inflation has hit 2 percent for the first time since 2012.

According to Statistics Canada, annual inflation rose to 2.0 percent in April, from 1.5 percent the previous month. However, core inflation, which strips out volatile food and energy prices and is more closely watched by the Bank of Canada, remained at 1.4 percent.

Investors will be looking ahead to a report on U.S. new home sales for some direction.

A weak reading on German business confidence and concerns about Ukraine could weigh on sentiment.

Gold and energy stocks are likely to turn in a mixed performance, tracking sluggish commodity prices.

On Thursday, the benchmark S&P/TSX Composite Index closed up 52.43 points or 0.36 percent at 14,702.29, extending gains to a third successive session, thanks positive global cues and some encouraging Canadian earnings news.

In commodities, crude oil prices are slightly higher with investors looking ahead to U.S. housing data and this weekend's presidential election in the Ukraine.

Crude oil futures for July are up $0.40 or 0.39 percent at $104.14 a barrel

Natural gas for June is up $0.022 or 0.52 percent at $4.382 per million btu.

Gold futures for June delivery are down $6.90 or 0.53 percent at $1,288.10 an ounce, due to a stronger greenback.

Silver for July is down $0.177 or 0.91 percent at $19.343 an ounce.

Meanwhile, copper is up $0.020 or 0.65 percent at $3.162 per pound.

In the currency market, the Canadian loonie is trading at 1.0891 against the U.S. dollar, up marginally from previous close.

On the economic front, the U.S. Commerce Department is scheduled to release its new home sales report for April at 10 am ET. The consensus estimate calls for new home sales to increase to a seasonally adjusted annual rate of 420,000 from 384,000 in the previous week.