Canadian Stocks Are Flat Despite Rising Commodity Prices - Canadian Commentary

(RTTNews) - The Canadian stock market got off to a weak start Tuesday, but has since pared its losses and is now basically flat. Healthcare and information technology stocks are among the weakest performers this morning, while energy and financial stocks are providing some support. Commodity prices are slightly higher this morning, attempting to stabilize following the recent pullback.

Markets in Europe got off to a weak start Tuesday and have been stuck in a sideways trend for the bulk of the session. Automakers are struggling after General Motors lowered its outlook for U.S. new vehicle sales in 2017. Investors were also disappointed after the planned private equity takeover of German drug-maker Stada proved unsuccessful.

Markets in the United States are trading slightly lower this morning. Traders are in a cautious mood ahead of remarks by Federal Reserve Chair Janet Yellen, who is due to discuss global economic issues this afternoon.

The benchmark S&P/TSX Composite Index is up 0.77 points or 0.01 percent at 15,316.79.

On Monday, the index closed down 3.54 points or 0.02 percent, at 15,316.02. The index scaled an intraday high of 15,378.74 and a low of 15,264.70.

The Capped Healthcare Index is lower by 1.16 percent. Valeant Pharmaceuticals International (VRX.TO) is weakening by 1.72 percent and Concordia International (CXR.TO) is losing 1.73 percent.

The Capped Information Technology Index is losing 1.03 percent. BlackBerry (BB.TO) is declining 0.37 percent and Sierra Wireless (SW.TO) is falling 2.06 percent. Constellation Software (CSU.TO) is decreasing 1.93 percent and Descartes Systems Group (DSG.TO) is decreasing 1 percent.

The Gold Index is declining 0.47 percent. Gold prices are inching higher Tuesday morning ahead of key speeches from Federal Reserve officials, including Fed Chair Janet Yellen.

Kinross Gold (K.TO) is falling 1.34 percent and B2Gold (BTO.TO) is losing 1.05 percent. Barrick Gold (ABX.TO) is declining 0.18 percent and IAMGOLD (IMG.TO) is weakening by 0.43 percent. Yamana Gold (YRI.TO) is decreasing 0.29 percent and Goldcorp Inc. (G.TO) is down 0.88 percent. Eldorado Gold (ELD.TO) is surrendering 0.78 percent.

The Capped Industrials Index is down 0.23 percent. Canadian Pacific Railway (CP.TO) is falling 0.13 percent and Canadian National Railway (CNR.TO) is lower by 0.24 percent. Air Canada (AC.TO) is decreasing 0.15 percent and Bombardier (BBD-B.TO) is losing 1.23 percent.

The Capped Materials Index is down 0.25 percent. Agnico Eagle Mines (AEM.TO) is weakening by 1.47 percent and Franco-Nevada (FNV.TO) is losing 0.84 percent. Potash Corp. of Saskatchewan (POT.TO) is falling 0.32 percent.

The Capped Telecommunication Services Index is down 0.18 percent. BCE (BCE.TO) is falling 0.05 percent and Rogers Communications (RCI-B.TO) is losing 0.58 percent.

The Energy Index is rising 1 percent. Crude oil prices have risen back to around $44 a barrel Tuesday morning ahead of the release of U.S. crude inventory data.

Canadian Natural Resources (CNQ.TO) is increasing 0.88 percent and Crescent Point Energy (CPG.TO) is up 2.41 percent. Suncor Energy (SU.TO) is rising 0.60 percent and Encana (ECA.TO) is climbing 1.61 percent. Cenovus Energy (CVE.TO) is gaining 2.95 percent and Husky Energy (HSE.TO) is adding 0.26 percent.

The heavyweight Financial Index is increasing 0.11 percent. Bank of Nova Scotia (BNS.TO) is gaining 0.08 percent and Royal Bank of Canada (RY.TO) higher by 0.20 percent. Canadian Imperial Bank of Commerce (CM.TO) is advancing 0.38 percent and Toronto-Dominion Bank (TD.TO) is adding 0.38 percent. Bank of Montreal (BMO.TO) is rising 0.31 percent.

On the economic front, Italy's consumer confidence improved more-than-expected in June, while business confidence rose marginally, survey data from the statistical office Istat showed Tuesday. The consumer confidence index climbed to 106.4 in June from 105.4 in May. Economists had expected the index to increase to 105.8.

UK consumer confidence deteriorated notably in the wake of hung parliament, survey results from YouGov and the Centre for Economics and Business Research showed Tuesday. The overall consumer sentiment index dropped to 106.9 in June, its second-lowest level since the summer of 2013.

Consumer confidence in the U.S. unexpectedly improved in the month of June, according to a report released by the Conference Board on Tuesday. The Conference Board said its consumer confidence index rose to 118.9 in June from a downwardly revised 117.6 in May.

The increase came as a surprise to economists, who had expected the index to drop to 116.7 from the 117.9 originally reported for the previous month.

In commodities, crude oil futures for July delivery are up 0.54 or 1.24 percent at $43.92 a barrel.

Natural gas for July is up 0.026 or 0.86 percent at $3.053 per million btu.

Gold futures for August are up $3.90 or 0.31 percent at $1,250.30 an ounce.

Silver for July is up $0.033 or 0.20 percent at $16.605 an ounce.