Canadian Stocks Are Flat After Early Gains Erode -- Canadian Commentary

(RTTNews) - The Canadian stock market climbed in early trade Friday, but has since given back those gains and is now nearly flat. The energy sector is the best performer this morning, despite relatively flat crude oil prices. The weak performance of the gold stocks is limiting the market's upside move.

The majority of the European markets are trading in the red Friday. Commodity related stocks are under pressure due to the continued strength of the U.S. dollar. Bank stocks are also pulling back, following the strong gains they have recently amassed.

Markets in the United States began Friday's session with a slight increase, but have since slipped into negative territory. The markets finished near record highs on Thursday and may be due for some profit taking. There was also little economic data to drive trading at the end of the week.

The benchmark S&P/TSX Composite Index is down 0.08 points or 0.00 percent at 14,826.01.

On Thursday, the index closed up 92.87 points or 0.63 percent, at 14,826.09. The index scaled an intraday high of 14,852.42 and a low of 14,738.55.

The Energy Index is up 0.68 percent. Crude oil prices are flat Friday morning, as a strong U.S. dollar continues to weigh on all commodities.

Canadian Natural Resources (CNQ.TO) is advancing 0.54 percent and Crescent Point Energy (CPG.TO) is rising 0.91 percent. Encana (ECA.TO) is gaining 1.50 percent and Suncor Energy (SU.TO) is climbing 0.78 percent.

The Capped Industrials Index is up 0.23 percent. Canadian Pacific Railway (CP.TO) is gaining 0.10 percent and Canadian National Railway (CNR.TO) is rising 0.14 percent. Air Canada (AC.TO) is advancing 0.22 percent.

The Capped Healthcare Index is higher by 0.08 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 0.29 percent and Concordia International (CXR.TO) is climbing 0.69 percent. Extendicare (EXE.TO) is increasing 1.04 percent.

The heavyweight Financial Index is increasing 0.07 percent. Toronto-Dominion Bank (TD.TO) is rising 0.27 percent and National Bank of Canada (NA.TO) is climbing 0.51 percent. Royal Bank of Canada (RY.TO) is up 0.22 percent and Bank of Nova Scotia (BNS.TO) is adding 0.11 percent. The Gold Index is declining 0.83 percent. Gold prices are falling Friday morning, extending steep weekly losses amid a strong U.S. dollar and resilient equities. Goldcorp (G.TO) is down 1.38 percent and Barrick Gold (ABX.TO) is losing 1.11 percent. Eldorado Gold (ELD.TO) is declining 1.08 percent and Kinross Gold (K.TO) is weakening by 3.34 percent. B2Gold (BTO.TO) is falling 2.15 percent and IAMGOLD (IMG.TO) is lower by 1.71 percent. Yamana Gold (YRI.TO) is also decreasing 2.05 percent.

The Capped Materials Index is also down 1.05 percent. Agnico Eagle Mines (AEM.TO) is declining 0.87 percent and Franco-Nevada (FNV.TO) is weakening by 1.84 percent. Silver Wheaton (SLW.TO) is surrendering 1.82 percent and Potash Corp. of Saskatchewan (POT.TO) is losing 0.38 percent.

The Capped Information Technology Index is falling 0.53 percent. Constellation Software (CSU.TO) is losing 1.82 percent.

The Capped Telecommunication Services Index is weakening by 0.15 percent. BCE (BCE.TO) is losing 0.09 percent and TELUS (T.TO) is lower by 0.64 percent. Rogers Communications (RCI-B.TO) is down 0.42 percent.

Ivanhoe Mines (IVN.TO) said the DR Congo wants to be a prominent partner in the building of its massive Kamoa-Kakula Copper Project. Shares are falling 1.66 percent.

On the economic front, data from Statistics Canada showed that inflation rose a seasonally adjusted 0.2 percent on month in October, in line with economists' expectations and unchanged from the rate in September.

Core inflation was flat on a seasonally adjusted monthly basis, following a 0.1 percent uptick in the previous month. Economists had forecast the index to grow by 0.3 percent.

The euro area current account surplus decreased in September, the European Central Bank said Friday. The current account surplus fell to EUR 25.3 billion in September from EUR 29.1 billion in August, which was the highest surplus in three months.

Germany's producer prices declined at a slower pace in October, data from Destatis showed Friday. Producer prices declined by less-than-expected 0.4 percent in October from prior year after falling 1.4 percent in September.

Leading U.S. economic indicators inched higher for the second consecutive month in October, the Conference Board said in a report on Friday. The Conference Board said its leading economic index crept up by 0.1 percent in October after edging up by 0.2 percent in September. The uptick by the index matched economist estimates.

In commodities, crude oil futures for December delivery are down 0.02 or 0.04 percent at $45.40 a barrel.

Natural gas for December is up 0.115 or 4.25 percent at $2.818 per million btu.

Gold futures for December are down $8.30 or 0.68 percent at $1,208.60 an ounce.

Silver for December is down $0.177 or 1.06 percent at $16.595 an ounce.