Canadian Stocks Are Little Changed As Commodities Slip – Canadian Commentary

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( – The Canadian stock market is up slightly Wednesday morning, but is little changed overall. Energy and gold stocks are slipping this morning as commodity prices fall. Meanwhile, financial stocks are rising on upbeat bank earnings.

Markets in Europe are trading modestly higher Wednesday, following yesterday’s notable pullback. Concerns over North Korea have eased somewhat following U.S. President Donald Trump’s measured response to North Korea’s recent missile launch.

Markets on Wall Street are little changed in early trade Wednesday. The S&P 500 and the Dow Jones Industrial Average are hovering near the flat line, while the Nasdaq is trading slightly higher. Traders have reacted positively to the better than expected reads on private sector employment and GDP this morning.

On Tuesday, the index closed up 30.67 points or 0.20 percent, at 15,082.70. The index scaled an intraday high of 15,084.02 and a low of 14,933.99.

The Capped Healthcare Index is higher by 1.44 percent. Extendicare (EXE.TO) is rising 0.22 percent.

The Capped Information Technology Index is gaining 0.61 percent. BlackBerry (BB.TO) is rising 0.53 percent and Sierra Wireless (SW.TO) is increasing 0.48 percent. Constellation Software (CSU.TO) is up 0.12 percent.

The Capped Industrials Index is up 0.63 percent. Air Canada (AC.TO) is advancing 0.99 percent and Canadian Pacific Railway (CP.TO) is increasing 0.52 percent. Canadian National Railway (CNR.TO) is gaining 0.86 percent and Finning International (FTT.TO) is adding 0.50 percent.

The Capped Telecommunication Services Index is up 0.29 percent. Rogers Communications (RCI-B.TO) is gaining 0.46 percent and TELUS (T.TO) is rising 0.07 percent. BCE (BCE.TO) is climbing 0.29 percent.

The heavyweight Financial Index is increasing 0.22 percent. Royal Bank of Canada (RY.TO) is rising 0.16 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.21 percent. Bank of Montreal (BMO.TO) is advancing 0.21 percent and Bank of Nova Scotia (BNS.TO) is climbing 0.49 percent.

National Bank of Canada (NA.TO) is gaining 2.04 percent after its third quarter profit rose 8% from last year. Earnings were C$524 million, or C$1.39 per share. This was up from C$486 million, or C$1.33 per share, in last year’s third quarter.

The Energy Index is falling 0.47 percent. Crude oil prices have slipped further Wednesday morning, amid fears that refinery operations along the Texas-Louisiana coast will be interrupted for some time.

Canadian Natural Resources (CNQ.TO) is weakening by 0.72 percent and Crescent Point Energy (CPG.TO) is decreasing 0.48 percent. Suncor Energy (SU.TO) is surrendering 0.66 percent and Cenovus Energy (CVE.TO) is declining 0.32 percent.

The Gold Index is decreasing 0.07 percent. Gold prices are down slightly Wednesday morning, easing from an 11-month high from the previous session.

Eldorado Gold (ELD.TO) is losing 1.57 percent and Goldcorp (G.TO) is decreasing 0.82 percent. B2Gold (BTO.TO) is weakening by 0.30 percent and Yamana Gold (YRI.TO) is surrendering 1.66 percent.

On the economic front, Canada’s current account deficit on a seasonally adjusted basis widened by $3.4 billion in the second quarter to $16.3 billion.

Eurozone economic confidence reached its highest level in more than ten years in August, survey results from European Commission showed Wednesday. The economic confidence index rose to 111.9 in August from 111.3 in July. The score was forecast to rise slightly to 111.3 from July’s initially estimated value of 111.2.

German consumer prices rose for a fourth straight month and at the fastest pace in as many months in August, preliminary data from Destatis showed Wednesday. The consumer price index climbed 1.8 percent year-on-year following 1.7 percent increase in July. The rate was in line with economists’ consensus estimate.

The UK mortgage approvals increased to a 16-month high in July, the Bank of England reported Wednesday. The number of mortgage approvals rose to 68,689 in July from 65,318 in June. This was the highest since March 2016 and above the expected level of 65,000.

Shop prices in the United Kingdom were down 0.3 percent on year in August, the British Retail Consortium said on Wednesday. That follows the 0.4 percent contraction in July.

Private sector employment in the U.S. increased by more than anticipated in the month of August, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment jumped by 237,000 jobs in August following an upwardly revised increase of 201,000 jobs in July.

Economists had expected employment to climb by 185,000 jobs compared to the addition of 178,000 jobs originally reported for the previous month.

A report released by the Commerce Department on Wednesday showed U.S. economic activity increased by more than previously estimated in the second quarter. The Commerce Department said gross domestic product jumped by 3.0 percent in the second quarter compared to the previously estimated 2.6 percent growth.

Economists had expected a much more modest upward revision in the pace of GDP growth in the quarter to 2.7 percent.

In commodities, crude oil futures for September delivery are down 0.36 or 0.78 percent at $46.08 a barrel.

Natural gas for September is down 0.043 or 1.44 percent at $2.94 per million btu.

Gold futures for December are down 4.20 or 0.32 percent at $1,314.70 an ounce.

Silver for September is down 0.026 or 0.15 percent at $17.40 an ounce.

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