TSX Ends At Near 3-Year High On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended at a near three-year high on Friday, for a ninth straight session of gain, tracking rising global equity markets led mostly by the gold stocks on a surge in bullion prices. Investors tracked some upbeat, better than expected gross domestic product numbers from the eurozone, while shrugging off some weak industrial production data from the U.S.

After edging higher last week, stocks accelerated to the upside after comments from Federal Reserve Chairman Janet Yellen that she would continue Ben Bernanke's ultra-easy monetary policy.

Euro area economic growth accelerated more-than-expected in the fourth quarter, gaining strength from almost all major economies in the currency bloc, reducing pressure on the central bank to take any immediate remedial measures to cushion growth and counteract slowing inflation. Most eurozone nations revealed upbeat fourth quarter GDP data. German and French growth exceeded expectations, while the Italian economy expanded for the first time since the second quarter of 2011.

From the U.S., industrial production unexpectedly declined in January, with severe freezing weather curtailing manufacturing production in some regions of the country. Separately, a Thomson Reuters and the University of Michigan report on Friday showed consumer sentiment to have unexpectedly held steady in February, after reporting a drop in the previous month.

Meanwhile, import prices in the U.S. unexpectedly saw a modest increase in January, reflecting a rebound in prices for non-fuel imports, a report from the Labor Department showed.

Chinese inflation for January remained unchanged at the lowest level since last May, as the underlying price pressures were subdued, giving leeway for the central bank to loosen policy to kick start a faster recovery.

The S&P/TSX Composite Index closed Friday at 14,054.76, up 53.11 points or 0.38 percent. The index scaled an intraday high of 14,071.54 and a low of 13,998.16.

Gold futures moved up for an eighth straight day as the dollar weakened on some disappointing industrial production data from the U.S.

The Global Gold Index gained 2.07 percent, with gold futures for April delivery, the most actively traded contract, adding $18.50 or 1.4 percent to close at $1,318.60 an ounce Friday on the Nymex.

Among gold stocks, Detour Gold Corp. (DGC.TO) jumped 5.66 percent, while Kinross Gold Corp. (K.TO) added 1.06 percent. Yamana Gold Inc. (YRI.TO) added 3.01 percent, while Goldcorp Inc. (G.T) added 2.29 percent.

Barrick Gold Corp. (ABX.TO) gained 1.27 percent after reporting a fourth-quarter profit that came in line with expectations yesterday. The gold mining giant earlier today said it has slashed gold reserves 26 percent and cut its capital-spending plans nearly in half.

The Capped Materials Index added 1.30 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.73 percent.

The Energy Index shed 0.19 percent, with U.S. crude oil futures for March delivery, the most actively traded contract, edging down $0.05 or 0.1 percent to close at $100.30 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) slipped 0.70 percent, while Talisman Energy Inc. (TLM.TO, TLM) dropped 1.10 percent. Cenovus Energy Inc. (CVE.TO) shed 1.25 percent, while Suncor Energy Inc. (SU.TO) declined 0.22 percent.

Encana Corp. (ECA.TO, ECA) shed 1.79 percent, having reported yesterday a fourth-quarter net loss of $251 million, with adjusted earnings topping estimates.

Pipelines operator Enbridge, Inc. (ENB.TO) added 0.95 percent after reporting a loss for the fourth quarter compared to a profit last year, hurt by higher commodity costs. Adjusted earnings fell short of estimates.

The heavyweight Financial Index gathered 0.51 percent with Royal Bank of Canada (RY.TO) edging up 0.01 percent and the Bank of Nova Scotia (BNS.TO) up 0.19 percent. Bank of Montreal (BMO.TO) added 0.38 percent, while Toronto-Dominion Bank (TD.TO) gained 0.61 percent.

Manulife Financial Corp. (MFC.TO) gained 2.44 percent.

The Diversified Metals & Mining Index added 0.83 percent, with Lundin Mining Corp. (LUN.TO) down 0.56 percent, and First Quantum Minerals (FM.TO) up 0.81 percent. Teck Resources Limited (TCK.B.TO) moved up 0.96 percent, after having reported a higher fourth-quarter profit yesterday.

The Information Technology Index moved up 0.03 percent, with BlackBerry Limited (BB.TO) down 3.52 percent.

The Capped Industrials Index dipped 2.17 percent, with Bombardier Inc. (BBD.B.TO) plunging 8.91 percent. The transportation systems maker reported firm orders for up to 17 aircraft valued to the extent of $852 million.

In economic news, Canadian factory shipments unexpectedly fell in December on weaker demand for airplanes and cars.

In economic news, the Thomson Reuters and the University of Michigan report showed preliminary reading on the consumer sentiment index for February at 81.2, unchanged from the final January reading. Economists expected the index to drop to a reading of 80.2.

A Federal Reserve report showed Industrial production in the U.S. fell 0.3 percent in January after rising 0.3 percent in December. Economists expected production to increase by 0.3 percent. The unexpected drop in industrial production was partly due to the weather-related weakness in the manufacturing sector. Manufacturing production dropped 0.8 percent in January following a downwardly revised 0.3 percent increase in the previous month.

A Labor Department report showed import prices in the U.S. inched up 0.1 percent in January following a revised 0.2 percent increase in December. Economists expected import prices to edge down 0.1 percent compared to the unchanged reading originally reported the previous month. The uptick was due to a rebound in prices for non-fuel imports, which rose 0.3 percent in January after dipping by 0.1 percent in December. Export prices rose 0.2 percent in January after climbing 0.4 percent in December, with economists anticipating prices to move up by 0.1 percent.

Reflecting moderating demand in global commodity markets, producer prices in China extended its decline for the 23rd month, data from the National Bureau of Statistics showed Friday. Consumer prices were up 2.5 percent in January from the prior year, the same rate of growth as seen in December, but slightly above the 2.4 percent rise forecast by economists.

Gross domestic product in the euro area grew 0.3 percent sequentially, which was faster than the 0.1 percent rise posted in the third quarter, flash estimates from Eurostat showed Friday. The rate was also above the 0.2 percent forecast by economists. The economy expanded for the third successive quarter at the end of 2013, following six quarters of contraction. On a yearly comparison, GDP rose 0.5 percent, reversing the 0.3 percent decline in the third quarter.