TSX Ends Higher On Federal Reserve - Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session Friday, on the back of some higher commodity prices led by energy stocks, in the aftermath of the U.S. Federal Reserve reaffirming its commitment to the central bank's accommodative monetary policy.

Nonetheless, most European markets settled lower with investors cautious after some soft earnings from technology companies in the U.S. The Asian markets also ended mostly lower

The S&P/TSX Composite Index closed Friday at 12,685.13, up 56.28 points or 0.45 percent. The index touched an intraday high of 12,693.87 and a low of 12,624.99.

The Global Gold Index edged up 0.05 percent, with gold futures for August delivery gaining $8.70 or 0.7 percent to close at $1,292.20 an ounce Friday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained3.62 percent, while Goldcorp Inc. (G.TO) added 3.66 percent. Barrick Gold Corp. (ABX.TO) jumped 5.02 percent, while Kinross Gold Corp. (K.TO) rose 4.92 percent.

The Capped Materials Index added 2.01 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) up 0.38 percent.

The Diversified Metals & Mining Index surrendered 2.00 percent, with First Quantum Minerals Ltd. (FM.TO) dropping 3.45 percent and Teck Resources Limited (TCK.B.TO) down 0.30 percent. Lundin Mining Corp. (LUN.TO) dropped 1.93 percent, while Osisko Mining Corp. (OSK.TO) jumped 7.11 percent.

The Energy Index gained 1.07 percent, with U.S. crude oil futures for September delivery adding $0.06 to close at $107.87 a barrel Friday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) gained 1.38 percent, while Enbridge Inc. (ENB.TO) slipped 0.04 percent. Talisman Energy Inc. (TLM.TO) added 2.46 percent, while Encana Corp. (ECA.TO) ended flat at $18.04. Canadian Natural Resources Limited (CNQ.TO) gathered 1.27 percent, while Cenovus Energy Inc. (CVE.TO) shed 0.40 percent.

The Financial Index added 0.19 percent with Bank of Montreal (BMO.TO) up 0.65 percent, Royal Bank of Canada (RY.TO) up 0.48 percent, while Toronto-Dominion Bank gained 0.19 percent. Bank of Nova Scotia (BNS.TO) added 0.31 percent.

The Information Technology Index moved up 0.77 percent, with BlackBerry Limited (BB.TO) dropping 1.27 percent.

The Capped Industrials Index shed 0.09 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 0.79 percent.

Fairfax Financial Holdings (FFH.TO) edged up 0.12 percent after announcing the appointment of Paul Rivett as its President. Rivett has held the positions of Vice President, Chief Legal Officer and Vice President, Operations at Fairfax, and he will continue in his role as Chief Operating Officer at Hamblin Watsa Investment Counsel.

In economic news, Statistics Canada said inflation rose 1.2 percent year-over-year in June, following a 0.7 percent increase in May. This 0.5 percentage point gain was led by transportation prices, which rose 2.0 percent on a year-over-year basis in June after falling 0.5 percent in May. Economists expected inflation to rise 1.2 percent y-o-y

Meanwhile, the Bank of Canada's core index rose 1.3 percent in the 12 months to June, following a 1.1 percent increase in May. On a monthly basis, the seasonally adjusted core index increased 0.2 percent in June, after posting no change in May.

From the eurozone, Germany's producer price inflation accelerated in June, in line with economists' expectations, latest data showed. The producer price index increased 0.6 percent on an annual basis in June, following a 0.2 percent gain in May, the Federal Statistical Office said. The growth rate for June was in line with economists' forecast.

The U.K. public sector net borrowing, excluding interventions, declined to GBP 8.5 billion in June from GBP 11.9 billion last year, data from the Office for National Statistics showed. The ONS said PSNB has been reduced by GBP 3.9 billion of cash transfers from the Asset Purchase Facility Fund to government. If these transfers are excluded then public sector net borrowing in June 2013 was GBP 12.4 billion.

In a bid to reduce financing costs for companies, improve independent pricing, and better allocation of financial resources, China's central bank announced removal of all controls on lending rates of banks, effective Saturday. In a statement on Friday, the People's Bank of China said it will scrap a floor on lending rates set at 70 percent of the benchmark rate.