TSX Wavers Near 5-year Peak -- Canadian Commentary

(RTTNews) - Canadian stocks are higher Friday, tracking global cues and firmer commodity prices. A tame inflation data and upbeat retail sales report are also contributing to the slightly positive mood in the market.

However, after a firm start, stocks surrendered most of their early gains with concerns about the outlook on U.S. interest rates forcing investors to tread cautiously.

Energy stocks are being lifted by firm crude oil prices. Gold miners retreated after a steady start after the yellow metal pared some early gains.

The benchmark S&P/TSX Composite index is up 19.60 points or 0.14 percent at 14,381.43, after briefly touching a five-year high at 14,393.91 earlier in the day.

On Thursday, the benchmark closed at 14,361.83, up 27.29 points or 0.19 percent, bouncing back from a low of 14,264.81.

Energy stocks Cenovus Energy Inc. (CEV.TO) and Teck Resources (TCK.B.TO) are up 1.5 percent and 1 percent, respectively.

Among gold stocks, Goldcorp (G.TO) and Eldorado Gold Corporation (ELD.TO) are adding more than a percent.

Bombardier (BBD.B.TO) is up 1.6 percent, extending previous session's gains on bagging an order from Deutsche Bahn.

The major six banks are little changed from their last closing levels.

Shares of Silver Wheaton Corp. (SLW.TO) are up 0.6 percent despite the company reporting a sharp drop in both fourth-quarter and full-year net earnings and cutting its quarterly payout by two cents.

Fairfax Financial Holdings (FFH.TO) said it will pay about $12.8 million to expand its stake in media company Torstar Corp. (TSB.TO), boosting its holdings to 23 percent. The stock is up marginally, after having moved up more than 1.5 percent in early trade.

Onex Corp. (OCX.TO) is up 0.8 percent. The company announced that it will sell The Warranty Group or TWG to an affiliate of TPG Capital for an enterprise value of about $1.5 billion, including earnings the business generates from December 31, 2013 through closing.

BlackBerry Limited (BB.TO) is up 1.5 percent after the company said it has entered into an agreement to sell the majority of its real estate holdings in Canada.

Crude futures for May delivery are up $1.24 or 1.25 percent at $100.14 a barrel, coming off a low of $98.26, with the U.S. and the European Union expanding sanctions against Russia following its lawmakers finalizing the annexation of Ukraine's Crimea region.

Natural Gas for April is down $0.072 or 1.65 percent at $4.297 per million btu.

Meanwhile, gold prices, snapping a four-session losing streak, are up $4.80 or 0.36 percent $1,335.30, after having edged up to $1,343 earlier in the day.

Silver for May is down $0.055 or 0.27 percent at $20.375, while copper is up $0.030 or 1.02 percent at $2.958.

In economic news, the latest data from Statistics Canada showed that Canada's retail sales rose 1.3 percent on month in January, beating forecasts for 0.7 percent. The retail sales fell to 1.8 percent in December.

Consumer price index rose 1.1 percent on year and 0.8 percent on month in February, versus forecasts for an increase of 1.0 percent and 0.6 percent, respectively.

Following the release of these reports, the Canadian loonie climbed to 1.175 against the greenback, hitting a 2-day high, after having fallen to 1.1264 earlier in the day.

Against the euro, the loonie rose to 1.5408, hitting a 3-day high, bouncing back from a low of 1.531.

Traders will be paying close attention to a slew of U.S Fed speakers on Friday. Minneapolis Federal Reserve Bank President Narayana Kocherlakota, the lone dissenting voter at this week's policy meeting, will appear in D.C. at 4:30 pm.

Earlier in the day, St Louis Federal Reserve Bank President James Bullard will talk about the economy at a lunchtime event in Washington.

In economic news from Europe, U.K.'s budget deficit exceeded expectations in February with public sector net borrowing excluding interventions rising to GBP 9.3 billion, compared to GBP 9.2 billion registered a year ago. The budget deficit was seen at GBP 8.6 billion.

Asian markets ended on a firm note, with Chinese stocks posting strong gains amid speculation the government would loosen funding restrictions for property developers and lenders to support economic growth. Major European markets are trading modestly higher.