TSX Up Amid Firm Commodities - Canadian Commentary

(RTTNews) - Canadian stocks were extending gains for a third session Friday morning, with commodities moving higher on U.S. Federal Reserve chairman Ben Bernanke assurance about plans for stimulus withdrawal. The European markets were moderately lower, after unimpressive earnings news from technology companies in the U.S. made investors cautious. The Asian markets ended mostly lower

The S&P/TSX Composite Index moved up 16.42 points or 0.13 percent to 12,645.27, after adding over 100 point or nearly 1 percent in the past two sessions.

The price of gold was moving higher Friday morning, with the US dollar trading weak after Ben Bernanke's testimony allayed fears of an early withdrawal of monetary stimulus program. Gold for August added $8.80 to $1293.00 an ounce.

Among gold plays, Allied Nevada Gold (ANV.TO jumped over 5 percent. Goldcorp. (G.TO), Royal Gold (RGL.TO) and Agnico-Eagle Mines (AEM.TO) were up around 2 percent each.

The price of crude oil jumped near a one-and-half year high Friday morning amid a recent batch of upbeat macroeconomic data and as the US dollar was ticking lower following Ben Bernanke's testimony that allayed fears of an early withdrawal of monetary stimulus program. Light Sweet Crude Oil (WTI) futures for September delivery, the most actively traded contract, gained $0.28 to $108.09 a barrel.

In the oil patch, Pacific Rubiales Energy (PRE.TO) gained about 4 percent. Canadian Natural Resources (CNQ.TO) and MEG Energy (MEG.TO) were up around 2 percent each.

Among financial stocks, National Bank (NA.TO) added 0.50 percent.

Fairfax Financial Holdings (FFH.TO) edged up 0.60 percent after announcing the appointment of Paul Rivett as its President. Over the past 10 years, Paul 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 euro zone, Germany's producer price inflation accelerated in June, and the figure matched 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, data showed.