The Canadian stock market is up in early trade Wednesday, extending its gains from the previous three trading sessions. The continued strength in crude oil prices continues to provide a boost to the market, but a slight dip in gold prices is limiting the upside a bit.
The Chinese stock market remains closed for Golden Week, giving investors a reprieve from concerns over the slowdown in the world's second largest economy. Commodity prices have staged a strong recovery over the past few sessions, while the Chinese market has been closed.
Markets in Europe are climbing Wednesday, extending their winning streak to a fourth session. Mining and oil stocks are showing continued strength. The weaker than expected German industrial production report also has investors speculating that the ECB may need to announce further stimulus measures.
Markets in the United States are also rising in early trade. However, trading activity is somewhat subdued due to a lack of major U.S. economic data. Traders are also looking ahead to the release of quarterly results from Alcoa after the close of trading on Thursday, which marks the unofficial start of earnings season.
The benchmark S&P/TSX Composite Index is up 183.51 points or 1.34 percent at 13,830.77.
On Tuesday, the index closed up 95.06 points or 0.70 percent, at 13,647.26. The index scaled an intraday high of 13,690.86 and a low of 13,582.12.
The Diversified Metal and Mining Index is surging 11.52 percent. HudBay Minerals (HBM.TO) is gaining 10.70 percent and Sherritt International (S.TO) is higher by 8.99 percent. Lundin Mining (LUN.TO) is advancing by 5.14 percent and Capstone Mining (CS.TO) is rising 7.02 percent. Teck Resources (TCK-A.TO) is adding 12.75 percent and First Quantum Minerals (FM.TO) is surging 17.62 percent.
The Energy Index is increasing 3.51 percent. Crude oil prices have begun to pare their gains after a report showed that U.S. crude inventories increased by 3.1 million barrels.
Canadian Natural Resources (CNQ.TO) is advancing by 3.72 percent and Pacific Exploration & Production (PRE.TO) is gaining 2.81 percent. Encana (ECA.TO) is rising 5.66 percent and Suncor Energy (SU.TO) is higher by 2.04 percent. Crescent Point Energy (CPG.TO) is up 4.34 percent and Cenovus Energy (CVE.TO) is adding 2.31 percent.
Canadian Oil Sands (COS.TO) is higher by 1.94 percent, after it adopted a new shareholder rights plan.
The Capped Materials Index is up 1.73 percent. Agrium (AGU.TO) is gaining 2.04 percent and Potash Corp. of Saskatchewan (POT.TO) is climbing 3.62 percent.
Franco-Nevada (FNV.TO) is down 0.59 percent. The company has agreed to acquire a silver stream from the Antamina mine in Peru from Teck Resources (TCK-A.TO) for US$610 million.
The Capped Industrials Index is up 1.72 percent. Canadian Pacific Railway (CP.TO) is rising 1.76 percent and Canadian National Railway (CNR.TO) is up 2.38 percent. Finning International (FTT.TO) is gaining 1.36 percent and AutoCanada (ACQ.TO) is higher by 4.19 percent.
Bombardier (BBD-A.TO) is sinking 12.99 percent, after talks between it and Airbus Group over possible "business opportunities" have ended.
The heavyweight Financial Index is rising 1.13 percent. Toronto-Dominion Bank (TD.TO) is increasing 1.02 percent and Bank of Nova Scotia (BNS.TO) is higher by 1.84 percent. Bank of Montreal (BMO.TO) is gaining 1.02 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 1.28 percent. National Bank of Canada (NA.TO) is climbing 1.22 percent and Royal Bank of Canada (RY.TO) is advancing 0.76 percent.
The Capped Information Technology Index is gaining 0.68 percent. Constellation Software (CSU.TO) is up 0.14 percent and BlackBerry (BB.TO) is climbing 2.04 percent. Sierra Wireless (SW.TO) is also increasing 3.68 percent.
The Capped Health Care Index is advancing 0.18 percent. Extendicare (EXE.TO) is gaining 0.86 percent.
The Gold Index is decreasing by 1.15 percent. Gold prices have turned slightly lower this morning, reversing early gains.
Eldorado Gold (ELD.TO) is losing 0.20 percent and B2Gold (BTO.TO) is falling 4.24 percent. Goldcorp (G.TO) is down 0.39 percent and Barrick Gold (ABX.TO) is declining 1.16 percent. IAMGOLD (IMG.TO) is decreasing 1.59 percent.
The Capped Telecommunication Services Index is lower by 0.29 percent. TELUS (T.TO) is decreasing by 0.22 percent and BCE (BCE.TO) is losing 0.04 percent. Manitoba Telecom Services (MBT.TO) is falling 0.28 percent.
Brookfield Asset Management (BAM-A.TO) is up 0.45 percent. The company announced it intends to spin off approximately 35% of Brookfield Business Partners L.P. by distributing to shareholders a special dividend estimated to be worth $0.50 per share, or approximately $500 million, in the form of units of Brookfield Business Partners.
On the economic front, Germany's industrial production declined at the fastest pace in 12 months in August, defying expectations for a modest increase, suggesting that economic growth slowed in the third quarter and that the manufacturing sector is set to struggle in coming months mainly due to weaker demand from emerging markets, especially China.
Industrial production declined 1.2 percent from July, when it rose 1.2 percent, which was revised from 0.7 percent, Destatis said Wednesday. Economists had forecast production growth to ease to 0.2 percent.
France's external trade deficit for August narrowed more-than-expected from a year ago as imports fell at a faster rate than exports, figures from the French Customs showed Wednesday. The trade deficit shrunk to EUR 2.975 billion from EUR 5.283 billion in the same month last year. Economists had expected a EUR 3.25 billion shortfall.
U.K. industrial output rebounded at a faster-than-expected pace in August, driven by oil extraction and transport equipment. Industrial production grew 1 percent from July, reversing a 0.3 percent drop in the prior month, data from the Office for National Statistics showed Wednesday.
A similar rate of strong growth was last seen in February 2014. Economists had forecast only a 0.3 percent rise for August.
Shop prices in the United Kingdom fell 1.9 percent on year in September, the British Retail Consortium said on Wednesday. That follows the 1.4 percent yearly decline in August.
In commodities, crude oil futures for November delivery are up $0.92 or 1.90 percent at $49.45 a barrel.
Natural gas for November is up 0.054 or 2.19 percent at $2.524 per million btu.
Gold futures for December are down $4.90 or 0.43 percent at $1,141.50 an ounce.
Silver for December is down $0.054 or 0.34 percent at $15.93 an ounce.
For comments and feedback contact: editorial@rttnews.com
Market Analysis