The Canadian stock market is up in early trade Tuesday morning, extending its gains from the previous session. The financial sector is leading the way higher this morning after Bank of Montreal reported strong quarterly results. Meanwhile, energy stocks are struggling as crude oil prices extend the weakness from the previous session.
Markets in Europe are climbing Tuesday after flash PMI data indicated the euro area remained on a steady growth path in the third quarter, with no signs of the recovery being derailed by Brexit uncertainty. A rebound by the mining stocks is also providing a boost to the markets, after their sharp pull back at the start of the trading week.
Markets in the United States are trading slightly to the upside this morning. Investors are in a cautious mood ahead of a speech from Fed Chair Janet Yellen at the end of the week. After some hawkish comments from various Fed officials last week, traders are hoping for some clarity on what to expect for interest rates when the central bank holds its next meeting in September.
The benchmark S&P/TSX Composite Index is up 31.95 points or 0.22 percent at 14,780.14.
On Monday, the index closed up 60.73 points or 0.41 percent, at 14,748.19. The index scaled an intraday high of 14,748.19 and a low of 14,616.91.
The heavyweight Financial Index is increasing 0.98 percent. Toronto Dominion Bank (TD.TO) is rising 0.91 percent and Royal Bank of Canada (RY.TO) is up 0.99 percent. National bank of Canada (NA.TO) is climbing 1.41 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.96 percent. Bank of Nova Scotia (BNS.TO) is advancing 1.20 percent.
Bank of Montreal (BMO.TO) is gaining 2.31 percent. The company surpassed expectations by reporting a quarterly profit of C$1.29 billion, or C$1.94 per share. This was higher than C$1.23 billion, or C$1.86 per share, in last year's third quarter.
The Capped Information Technology Index is climbing 0.44 percent. Sierra Wireless (SW.TO) is gaining 0.80 percent and BlackBerry (BB.TO) is adding 0.10 percent.
The Capped Materials Index is up 0.17 percent. Agnico Eagle Mines (AEM.TO) is higher by 0.04 percent and Agrium (AGU.TO) is rising 0.41 percent. Potash Corp. of Saskatchewan (POT.TO) is also gaining 1.04 percent.
The Gold Index is higher by 0.13 percent. Gold prices remain flat Tuesday morning ahead of a this week's highly-anticipated commentary from Fed Chair Janet Yellen.
Barrick Gold (ABX.TO) is gaining 0.51 percent and Kinross Gold (K.TO) is rising 0.48 percent. B2Gold (BTO.TO) is also up 2.10 percent.
The Capped Healthcare Index is advancing 0.07 percent. Extendicare (EXE.TO) is rising 0.46 percent.
Valeant Pharmaceuticals International (VRX.TO) is dipping 0.10 percent. The stock remains in focus after it hired Zoestis exec Paul Herendeen as its new CFO yesterday.
The Energy Index is down 0.45 percent. Crude oil prices are down for a second day Tuesday morning after Goldman Sachs called this month's rally "fragile."
"While oil prices have rebounded sharply since August 1, we believe this move has not been driven by incrementally better oil fundamentals, but instead by headlines around a potential output freeze as well as a sharp weakening of the dollar," Goldman analysts wrote.
Crescent Point Energy (CPG.TO) is weakening by 0.67 percent and Cenovus Energy (CVE.TO) is down 1.23 percent. Husky Energy (HSE.TO) is declining 0.41 percent and Imperial Oil (IMO.TO) is lower by 0.10 percent. Canadian Natural Resources (CNQ.TO) is falling 0.62 percent and Suncor Energy (SU.TO) is surrendering 0.71 percent.
The Capped Telecommunication Services Index is down 0.22 percent. TELUS (T.TO) is weakening by 0.33 percent and BCE (BCE.TO) is losing 0.24 percent. Rogers Communication (RCI-B.TO) is falling 0.49 percent.
The Capped Industrials Index is dipping 0.07 percent. Canadian National Railway (CNR.TO) is decreasing 0.33 percent and Canadian Pacific Railway (CP.TO) is declining 0.23 percent.
Transat AT (TRZ.TO) is climbing 1.08 percent. The company announced that it has stopped offering meal accommodations for travelers who require special diets.
On the economic front, Eurozone private sector expanded at the fastest pace in seven months in August, mirroring no major signs of "Brexit" impact in the region.
The composite output index rose unexpectedly to 53.3 in August from 53.2 in July, flash results from Markit's Purchasing Managers' survey showed Tuesday. The reading was forecast to drop slightly to 53.1.
Germany's private sector expanded further in August but the pace of growth weakened from July, survey results from Markit showed Tuesday. The flash composite output index dropped to 54.4 from 55.3 in July.
The French private sector expanded at the sharpest pace in ten months in August, flash survey data from Markit showed Tuesday. The composite output index rose to 51.6 in August from 50.1 in July.
The U.K. export order books reached a 2-year high as the depreciation of sterling boosted overseas demand, the Industrial Trends Survey from the Confederation of British Industry showed Tuesday.
Despite an improvement in exports, the order books balance fell to -5 percent in August compared to the expected score of -10 percent.
At the same time, the export order balance came in at -6 percent, the highest since August 2014.
In commodities, crude oil futures for September delivery are down 0.65 or 1.37 percent at $46.76 a barrel.
Natural gas for September is up 0.017 or 0.63 percent at $2.696 per million btu.
Gold futures for December are up $3.20 or 0.24 percent at $1,346.60 an ounce.
Silver for September is up $0.111 or 0.59 percent at $18.97 an ounce.
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