The Canadian stock market got off to a weak start Tuesday, but managed to briefly climb into positive territory, before slipping back into the red. Precious metal prices are on the rise this morning, which is providing a boost to gold stocks. Energy stocks are also positive this morning, as crude prices hold the $50 a barrel level.
At a speech to the House of Commons finance committee in Ottawa on Late Monday, the Bank of Canada Governor Stephen Poloz said the governing council actively discussed the possibility of further stimulus if needed.
"Monetary policy has room to maneuver and we are ready to use that room," he said.
However, Poloz also said that monetary policy is less effective when interest rates are low, and uncertainties keep the bank from cutting rates.
The majority of the European markets are trading in the green Tuesday. The rise in precious metal prices is providing a boost to mining and resource stocks.
Markets in the United States are struggling in early action, following the gains of the previous session. Traders continue to sift through a large number of corporate earnings reports and consumer confidence data came in weaker than expected.
The benchmark S&P/TSX Composite Index is down 4.99 points or 0.03 percent at 14,918.02.
On Monday, the index closed down 16.03 points or 0.11 percent, at 14,923.01. The index scaled an intraday high of 14,963.60 and a low of 14,881.27.
The Gold Index is rising 0.52 percent. Barrick Gold (ABX.TO) is advancing 0.23 percent and Kinross Gold (K.TO) is climbing 0.20 percent. Eldorado Gold (ELD.TO) is increasing 0.84 percent and Yamana Gold (YRI.TO) is gaining 1 percent. Goldcorp (G.TO) is up 0.39 percent and B2Gold (BTO.TO) is higher by 1.94 percent.
The Capped Materials Index is also up 0.87 percent. Franco-Nevada (FNV.TO) is rising 0.51 percent and Agnico Eagle Mines (AEM.TO) is adding 0.19 percent. Silver Wheaton (SLW.TO) is increasing 0.13 percent and Agrium (AGU.TO) is gaining 0.13 percent. Potash Corp. of Saskatchewan (POT.TO) is also climbing 0.29 percent.
The Capped Healthcare Index is higher by 0.42 percent. Valeant Pharmaceuticals International (VRX.TO) is up 2.87 percent.
The Energy Index is up 0.23 percent. Crude oil prices are holding above $50 a barrel despite signs that OPEC is quibbling over the scale of output quotas.
Encana (ECA.TO) is rising 0.55 percent and Cenovus Energy (CVE.TO) is advancing 0.49 percent. Crescent Point Energy (CPG.TO) is gaining 0.86 percent and Suncor Energy (SU.TO) is higher by 0.46 percent.
The Capped Industrials Index is up 0.04 percent. Canadian Pacific Railway (CP.TO) is rising 0.34 percent and Finning International (FTT.TO) is up 0.24 percent. Air Canada (AC.TO) is increasing 0.54 percent.
The Capped Telecommunication Services Index is weakening by 0.47 percent. BCE (BCE.TO) is falling 0.38 percent and Rogers Communication (RCI-B.TO) is decreasing 0.93 percent. TELUS (T.TO) is losing 0.46 percent and Manitoba Telecom Services (MBT.TO) is dipping 0.08 percent.
The Capped Information Technology Index is falling 0.33 percent. BlackBerry (BB.TO) is down 0.71 percent and Sierra Wireless (SW.TO) is weakening by 2.04 percent. Descartes Systems Group (DSG.TO) is also losing 0.39 percent.
The heavyweight Financial Index is decreasing 0.13 percent. Royal Bank of Canada (RY.TO) is down 0.18 percent and National Bank of Canada (NA.TO) is falling 0.43 percent. Canadian Imperial Bank of Commerce (CM.TO) is also slipping 0.02 percent.
Sherritt International (S.TO) reported disappointing quarterly results on lower revenues. The stock is rising 1.14 percent.
On the economic front, German business confidence improved to a 30-month high in October reflecting the upturn gathering impetus in the economy, survey data from the Ifo Institute showed Tuesday. The Ifo business confidence index climbed to 110.5 in October from 109.5 in the previous month, while economists had forecast the index to rise slightly to 109.6.
The total value of new orders received by the German construction industry decreased in August, figures from Destatis showed Monday. The seasonally, working-day and price-adjusted orders in construction dropped 2.2 percent month-over-month in August.
France's manufacturing confidence dropped unexpectedly in October, partly erasing the rise in the previous month, as factories were less upbeat regarding the production prospects in the sector, survey data from INSEE indicated Tuesday.
The manufacturing confidence index declined to 102 from 103 in September. Economists had expected the reading to remain unchanged. In August, the score was 101.
Data from the S&P/Case-Shiller showed that its home price index registered a 5.3 percent annual gain in August, up from 5.0 percent last month. The 20-City Composite index rose 5.1 percent year over year, up from July's 5.0 percent.
Consumer confidence in the U.S. decreased by more than anticipated in the month of October, according to a report released by the Conference Board on Tuesday. The Conference Board said its consumer confidence index fell to 98.6 in October after climbing to 103.5 in September. Economists had expected the index to drop to 101.0.
In commodities, crude oil futures for November delivery are down 0.11 or 0.22 percent at $50.41 a barrel.
Natural gas for November is down 0.041 or 1.45 percent at $2.79 per million btu.
Gold futures for December are up $6.20 or 0.49 percent at $1,269.90 an ounce.
Silver for December is up $0.116 or 0.66 percent at $17.72 an ounce.
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