Canadian Stocks Are Extending Recent Gains – Canadian Commentary

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( – The Canadian stock market is climbing in early trade Tuesday, adding to the gains from the previous session. The majority of the Canadian sectors are trading in the green this morning, with energy and health care stocks leading the way higher. Energy stocks are showing continued strength after crude oil prices have risen back above $50 a barrel.

Markets in Europe are turning in a mixed performance Tuesday, but are little changed overall. Economic data in the region was largely positive, as Germany’s economic confidence strengthened notably in September. However, investors remain cautious ahead of tomorrow’s Fed decision.

Markets in the United States are basically flat in early trade Tuesday. After rising to new record highs on Monday, the markets are struggling to advance further. Trading activity is rather subdued as investors await tomorrow’s policy decision from the Federal Reserve.

On Monday, the index closed up 63.64 points or 0.42 percent, at 15,236.67. The index scaled an intraday high of 15,249.61 and a low of 15,173.61.

The Energy Index is rising 0.72 percent. Crude oil prices have inched back above $50 a barrel Tuesday morning.

Crescent Point Energy (CPG.TO) is climbing 1.78 percent and Enbridge (ENB.TO) is adding 0.12 percent. Encana (ECA.TO) is advancing 0.46 percent and Imperial Oil (IMO.TO) is gaining 0.70 percent. Canadian Natural Resources (CNQ.TO) is also higher by 0.60 percent.

Cenovus Energy (CVE.TO) is increasing 3.11 percent. Globe and Mail reports that the company is near the sale of its Alberta LNG assets to pay down debt.

The Capped Healthcare Index is higher by 0.65 percent. ProMetic Life Sciences (PLI.TO) is climbing 2.80 percent and Tecsys (TCS.TO) is gaining 0.64 percent.

The Capped Telecommunication Services Index is up 0.47 percent. BCE (BCE.TO) is rising 0.23 percent and Rogers Communications (RCI-B.TO) is gaining 1.37 percent.

The Gold Index is increasing 0.42 percent. Gold prices are little changed this morning as investors await the results of the Federal Reserve’s 2-day policy meeting, which will conclude tomorrow.

B2Gold (BTO.TO) is climbing 1.70 percent and Yamana Gold (YRI.TO) is rising 1.49 percent. Barrick Gold (ABX.TO) is also adding 0.05 percent.

The Capped Materials Index is up 0.40 percent. Agnico Eagle Mines (AEM.TO) is rising 0.45 percent and Franco-Nevada (FNV.TO) is advancing 0.57 percent. Agrium (AGU.TO) is increasing 0.74 percent and Potash Corp. of Saskatchewan (POT.TO) is gaining 0.59 percent.

The Capped Industrials Index is up 0.23 percent. Canadian National Railway (CNR.TO) is advancing 0.83 percent and Canadian Pacific Railway (CP.TO) is higher by 0.57 percent. WestJet Airlines (WJA.TO) is increasing 0.65 percent.

The heavyweight Financial Index is increasing 0.25 percent. Royal Bank of Canada (RY.TO) is rising 0.40 percent and Bank of Montreal (BMO.TO) is up 0.16 percent. Canadian Imperial Bank of Commerce (CM.TO) is advancing 0.39 percent and Toronto-Dominion Bank (TD.TO) is adding 0.04 percent.

The Capped Information Technology Index is gaining 0.24 percent. Descartes Systems Group (CSU.TO) is up 0.47 percent.

On the economic front, manufacturing sales decreased 2.6% to $52.5 billion in July, following a 1.9% decline in June, Statistics Canada said.

The euro area current account surplus increased in July on higher primary income, the European Central Bank reported Tuesday. The current account surplus increased to a seasonally adjusted EUR 25.1 billion in July from EUR 22.8 billion in June.

Eurozone construction output increased for the second straight month in July, and at a stable pace, data from Eurostat showed Tuesday. Construction output climbed 0.2 percent month-over-month in July, the same rate of rise as in June, which was revised from a 0.5 percent decrease reported earlier.

Germany’s economic confidence strengthened notably in September, survey data from the Mannheim-based Centre for European Economic Research/ZEW showed Tuesday. The ZEW Indicator of Economic Sentiment rose by 7 points to 17.0 in September. The score was forecast to rise to 13.

The French government downgraded the budget deficit projections for this year and next, the Finance Ministry said Tuesday. The government currently forecast a deficit of 2.9 percent of gross domestic product for 2017 and 2.6 percent for 2018.

New residential construction in the U.S. unexpectedly decreased in the month of August, according to a report released by the Commerce Department on Tuesday. The report said housing starts fell by 0.8 percent to an annual rate of 1.180 million in August from a revised 1.190 million in July. Economists had expected housing starts to jump by 1.7 percent.

The report also said building permits, an indicating of future housing demand, spiked by 5.7 percent to a rate of 1.300 million in August from a rate of 1.230 million in July.

A report released by the Labor Department on Tuesday showed increases in U.S. import and export prices in the month of August.

The Labor Department said imports prices climbed by 0.6 percent in August after edging down by 0.1 percent in July. Economists had expected import prices to rise by 0.4 percent.

The report said export prices also rose by 0.6 percent in August following a 0.5 percent increase in the previous month. Export prices had been expected to edge up by 0.2 percent.

In commodities, crude oil futures for October delivery are up 0.08 or 0.16 percent at $49.99 a barrel.

Natural gas for October is down 0.022 or 0.70 percent at $3.124 per million btu.

Gold futures for December are up 1.70 or 0.13 percent at $1,312.50 an ounce.

Silver for December is up 1.14 or 0.66 percent at $17.27 an ounce.

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