TSX Up On Firm Commodities - Canadian Commentary

(RTTNews) - Canadian stocks were hovering in the green Friday morning, with gold stocks turning in mixed performances even as bullion was steady near a two-month high. Gains were capped after upbeat economic data from the U.S. gave rise to speculation that the Federal Reserve may begin to scale back its stimulus program at its next two-day policy meeting beginning on September 17.

The S&P/TSX Composite Index gained 36.67 points or 0.29 percent to 12,741.91.

The price of gold was holding onto its recent gains Friday morning despite speculation that the Federal Reserve would tapper its bond buying program sooner than expected. Traders speculate physical demand will support bullion prices after recent data revealed higher gold consumption in India and China. Gold for December delivery added $4.40 to $1,365.30 an ounce.

Among gold plays, Centerra Gold (CG.TO) and Kirkland Lake Gold (KGI.TO) were gaining around 3 percent each. Royal Gold (RGL.TO) added over 1 percent, while Agnico-Eagle Mines (AEM.TO) and Barrick Gold (ABX.TO) shedding around 1 percent each..

The price of crude oil was steady around its two-week high Friday morning on concerns over supply disruption from the Middle East with the Suez Canal skirting a tense Egypt as violence continued to escalate. Also, traders continued to weigh the more-than-expected drop in oil inventories last week as indicated by the official data from the Energy Information Administration. Crude for September edged up $0.47 to $107.80 a barrel.

In the oil patch, Suncor Energy (SU.TO) gained nearly 2 percent, while Niko Resources (NKO.TO) losing about 3 percent.

Software development company Versatile Systems Inc. (VV.V) gained 205 after announcing that Robert Joyce has resigned as a director and officer and all of its subsidiary companies. Joyce will continue with the company in a consulting role as well as assisting in the transition with new management.

Quebecor Inc. (QBR_B.TO) dipped over 50 percent after announcing that it has completed its previously announced two-for-one stock split.

In economic news Statistics Canada said non-resident investors trimmed their holdings of Canadian securities by $15.4 billion in June, the largest reduction since October 2007, with Canadian bonds in focus. Meanwhile, Canadian investors resumed their acquisition of foreign securities by adding $3.7 billion to their portfolios in June, favoring US debt instruments and non-US foreign equities.

Separately, the agency said manufacturing sales declined 0.5 percent to $48.2 billion in June to record its fourth decrease in six months.

From the U.S., the Commerce Department said that housing starts increased 5.9 percent to a seasonally adjusted annual rate of 896,000 units. June's starts were revised up to show a 846,000-unit pace instead of the previously reported 836,000 units. Economists expected housing starts to rise to a 900,000-unit rate last month. Meanwhile, building permits rose 2.7 percent in July to a 943,000-unit pace, almost matching economists expectations for a rise to a 945,000 units.

Elsewhere, the euro zone current account surplus declined in June mainly due to a fall in visible trade surplus, monthly data from the European Central Bank showed. The current account surplus decreased to a seasonally adjusted EUR 16.9 billion from EUR 19.5 billion in May.

Meanwhile, final data from the Eurostat revealed that euro zone's annual inflation stayed unchanged in July as estimated earlier. The harmonized index of consumer prices increased 1.6 percent on an annual basis in July, which was unchanged from the growth recorded in June. The outcome also matched the preliminary estimates.

In a separate report, the Eurostat said euro zone exports expanded in June after falling for two consecutive months. Exports advanced 3 percent in June from May, when it decreased by 2.6 percent. Likewise, imports rose 2.5 percent, offsetting the 2.1 percent fall in May.