Canadian Stocks Are Rising As Crude Oil Prices Rebound -- Canadian Commentary

(RTTNews) - The Canadian stock market is climbing in early trade Friday as it attempts to bounce back from the losses of the previous session. Energy stocks are a source of strength this morning, as crude oil prices attempt to bounce back from a recent sell-off. Mining stocks are also turning in a solid performance.

The risk appetite among investors seems to have improved at the end of the trading week. Safe haven plays like the Japanese Yen and gold are weakening Friday as anxiety over a potential U.K. exit of the European Union has relaxed.

Markets in Europe are up Friday lead by gains in bank stocks, as "Brexit" concerns eased. Britain's politicians suspended the Brexit referendum campaign for a second day following the death of Labour MP Jo Cox, a strong advocate for voting to stay in next week's referendum. The rebound in crude oil prices and the weakening of the Japanese Yen, which has been driven higher by is safe haven appeal, also contributed to the gains.

Markets in the United States are dipping in early trade Friday. Traders are showing reluctance to make any significant moves following the volatility seen during Thursday's session. Uncertainty ahead of next week's U.K. referendum also appears to be keeping some investors on the sidelines.

The benchmark S&P/TSX Composite Index is up 29.41 points or 0.21 percent at 13,911.82.

On Thursday, the index closed down 41.04 points or 0.29 percent, at 13,882.41. The index scaled an intraday high of 13,907.92 and a low of 13,814.19.

The Diversified Metal and Mining Index is advancing 1.79 percent. First Quantum Minerals (FM.TO) is rising 3.41 percent and HudBay Minerals (HBM.TO) is increasing 3.12 percent. Teck Resources (TCK-B.TO) is climbing by 2.29 percent and Capstone Mining (CS.TO) is gaining 2.99 percent. Sherritt International (S.TO) is also up 4 percent.

The Energy Index is up 1.74 percent. Crude oil prices are rebounding Friday morning, after slipping below $47 a barrel yesterday.

Canadian Natural Resources (CNQ.TO) is gaining 1.75 percent and Husky Energy (HSE.TO) is higher by 1.88 percent. Encana (ECA.TO) is climbing by 3.37 percent and Imperial Oil (IMO.TO) is up 0.25 percent. Crescent Point Energy (CPG.TO) is increasing 3.25 percent and Cenovus Energy (CVE.TO) is adding 3.15 percent. Suncor Energy (SU.TO) is advancing 0.68 percent.

The Capped Materials Index is up 0.52 percent. Silver Wheaton (SLW.TO) is increasing 2.15 percent and Potash Corp. of Saskatchewan (POT.TO) is rising 1.63 percent.

The Gold Index is higher by 0.18 percent. Gold prices have slipped beneath $1300 an ounce this morning, after reaching its highest level in 17 months early on Thursday.

Barrick Gold (ABX.TO) is rising 0.38 percent and B2Gold (BTO.TO) is adding 0.71 percent. Goldcorp (G.TO) is climbing 1.53 percent and Royal Gold (RGL.TO) is gaining 1.08 percent. Kinross Gold (K.TO) is up 1.54 percent and IAMGOLD (IMG.TO) is increasing 1.98 percent.

The Capped Industrials Index is rising 0.05 percent. Air Canada (AC.TO) is climbing by 2.30 percent and AutoCanada (ACQ.TO) is up 1.66 percent. Canadian Pacific Railway (CP.TO) is increasing 0.95 percent and Canadian National Railway (CNR.TO) is gaining 0.16 percent. Finning International (FTT.TO) is higher by 1.37 percent. Bombardier (BBD-B.TO) is advancing 1.55 percent.

The heavyweight Financial Index is increasing 0.08 percent. Canadian Imperial Bank of Commerce (CM.TO) is rising 0.41 percent and Bank of Nova Scotia (BNS.TO) is advancing 0.30 percent. National Bank of Canada (NA.TO) is climbing by 0.78 percent and Royal Bank of Canada (RY.TO) is adding 0.09 percent.

The Capped Information Technology Index is falling 0.58 percent. Constellation Software (CSU.TO) is declining 0.49 percent and Avigilon (AVO.TO) is down 0.60 percent.

The Capped Telecommunication Services Index is down 0.54 percent. Manitoba Telecom Services (MBT.TO) is falling 0.05 percent and BCE (BCE.TO) is decreasing 0.54 percent. TELUS (T.TO) is losing 0.48 percent and Rogers Communication (RCI-B.TO) is lower by 1.06 percent.

The Capped Healthcare Index is falling 0.18 percent. Concordia Healthcare (CXR.TO) is down 0.82 percent.

Valeant Pharmaceuticals International (VRX.TO) is losing 0.17 percent. Valeant announced that its wholly-owned subsidiary Valeant Canada is expanding its Canadian manufacturing and export capacity with investments totaling $27.5 million in its Steinbach, Manitoba and Laval, Quebec manufacturing facilities.

EnerPlus (ERF.TO) is surging 7.05 percent after it declared a cash dividend of C$0.01 per share.

On the economic front, data from Statistics Canada showed that Canada consumer price inflation rose to 0.4 percent on an unadjusted monthly basis in May, from 0.3 percent in April. Economists were expecting for a 0.5 percent gain.

Core inflation improved to 0.3 percent on a monthly basis, from last month's 0.2 percent increase. The estimate was in line with expectations.

Eurozone's labor costs growth accelerated for the second straight quarter in the three months ended March, figures from Eurostat showed Friday. Hourly labor costs grew at a faster pace of 1.7 percent year-over-year in the first quarter, following a 1.3 percent rise in the previous quarter. In the third quarter last year, the rate of hike was 1.2 percent.

The euro area current account surplus increased notably in April largely on higher primary income, figures from the European Central Bank showed Friday. The current account surplus totaled a seasonally adjusted EUR 36.2 billion in April compared to EUR 26.3 billion in the prior month.

British households perceived that the value of their home increased in June, though at a slower rate than in the previous month, survey figures from Markit Economics and Knight Frank showed Friday. The Knight Frank/Markit House Price Sentiment Index, or HPSI, dropped to 59.7 in June from 61.0 in the previous month.

New residential construction in the U.S. saw a modest decrease in the month of May, according to a report released by the Commerce Department on Friday. The report said housing starts edged down by 0.3 percent to an annual rate of 1.164 million in May from the revised April estimate of 1.167 million.

Economists had expected housing starts to dip to a rate of 1.150 million from the 1.172 million originally reported for the previous month.

The report also said building permits, an indicator of future housing demand, rose by 0.7 percent to an annual rate of 1.138 million in May from the revised April rate of 1.130 million.

In commodities, crude oil futures for July delivery are up 1.27 or 2.75 percent at $47.48 a barrel.

Natural gas for July is up 0.028 or 1.09 percent at $2.608 per million btu.

Gold futures for August are down $1.40 or 0.11 percent at $1,297.00 an ounce.

Silver for July is down $0.152 or 0.86 percent at $17.455 an ounce.