(RTTNews.com) - The Canadian stock market is gaining ground in early trade Monday. The industrials are leading the way higher this morning and the heavyweight financial sector is also providing support. Meanwhile, gold and energy stocks are struggling at the start of the new trading week, due to falling commodity prices.
Markets in Europe struggled in early trade Monday, but most have now inched into positive territory. Traders were unimpressed by the region's private sector data and weak earnings from banking giant UBS also weighed on sentiment.
Markets on Wall Street are nearly flat at the start of the new trading week. Traders are in a cautious mood ahead of earnings reports from some major companies later this week. Google parent Alphabet (GOOGL), Intel (INTC), Microsoft (MSFT), Coca-Cola (KO), Boeing (BA), and Verizon (VZ) are among the companies due to report their results this week.
The benchmark S&P/TSX Composite Index is up 85.42 points or 0.55 percent at 15,569.74.
On Friday, the index closed up 29.90 points or 0.19 percent, at 15,484.32. The index scaled an intraday high of 15,501.11 and a low of 15,442.42.
The Capped Industrials Index is up 1.10 percent. Canadian National Railway (CNR.TO) is rising 1.24 percent and Bombardier (BBD-B.TO) is gaining 0.75 percent. Air Canada (AC.TO) is climbing 0.81 percent and Finning International (FTT.TO) is adding 1.39 percent. WestJet Airlines (WJA.TO) is higher by 1.14 percent.
Canadian Pacific Railway (CP.TO) is increasing 2.07 percent after the company said that it has reached an agreement with both the Teamsters Canada Rail Conference-Train & Engine or TCRC and the International Brotherhood of Electrical Workers or IBEW, which averts the potential work stoppage.
The heavyweight Financial Index is increasing 0.67 percent. Bank of Montreal (BMO.TO) is gaining 0.67 percent and Royal Bank of Canada (RY.TO) is advancing 0.62 percent. National Bank of Canada (NA.TO) is up 0.89 percent and Toronto-Dominion Bank (TD.TO) is climbing 0.68 percent. Bank of Nova Scotia (BNS.TO) is rising 0.61 percent and Canadian Imperial Bank of Commerce (CM.TO) up 0.25 percent.
The Capped Telecommunication Services Index is up 0.49 percent. TELUS (T.TO) is gaining 0.59 percent and BCE (BCE.TO) is higher by 0.56 percent. Rogers Communications (RCI-B.TO) is rising 0.39 percent.
The Capped Information Technology Index is gaining 0.46 percent. Sierra Wireless (SW.TO) is rising 2.85 percent and BlackBerry (BB.TO) is advancing 0.96 percent. Constellation Software (CSU.TO) is climbing 1.90 percent and Descartes Systems Group (DSG.TO) is up 0.99 percent.
The Energy Index is rising 0.35 percent. Crude oil prices are lower Monday morning despite hopes that OPEC's output cuts have offset the U.S. shale boom.
Crescent Point Energy (CPG.TO) is rising 1.11 percent and Suncor Energy (SU.TO) is up 0.29 percent. Encana (ECA.TO) is climbing 1.17 percent and Canadian Natural Resources (CNQ.TO) is gaining 0.42 percent. Imperial Oil (IMO.TO) is higher by 0.48 percent and Enbridge (ENB.TO) is adding 0.03 percent.
The Capped Healthcare Index is lower by 0.92 percent. Concordia International (CXR.TO) is weakening by 3.17 percent and ProMetic Life Sciences (PLI.TO) is falling 3.66 percent.
The Gold Index is decreasing 0.95 percent. Gold prices are falling Monday morning, dropping below $1325 an ounce.
Barrick Gold (ABX.TO) is declining 1.37 percent and IAMGOLD (IMG.TO) is decreasing 1.70 percent. Eldorado Gold (ELD.TO) is losing 2.42 percent and Goldcorp (G.TO) is surrendering 0.82 percent. Kinross Gold (K.TO) is weakening by 0.61 percent and B2Gold (BTO.TO) is down 1.11 percent. Yamana Gold (YRI.TO) is down 2.12 percent.
The Capped Materials Index is down 0.96 percent. Agnico Eagle Mines (AEM.TO) is falling 1.31 percent and Franco-Nevada (FNV.TO) is lower by 0.50 percent. Nutrien (NTR.TO) is losing 0.35 percent.
On the economic front, data from Statistics Canada this morning showed that Canadian wholesale sales dropped by 0.8 percent in February. Economists had expected an increase of 0.5 percent.
The euro area government deficit narrowed in 2017, data published by Eurostat showed Monday. The government deficit to GDP ratio fell to 0.9 percent from 1.5 percent in 2016. The government deficit totaled EUR 98.92 billion compared to EUR 159.01 billion last year.
Eurozone private sector logged a moderate expansion in April, amid signs of weaker growth of demand and supply constraints. The composite output index remained unchanged at 55.2 in April, flash survey results from IHS Markit showed Monday. The score was forecast to drop to 55.0.
Germany's private sector grew solidly at the start of the second quarter, survey results from IHS Markit showed Monday. The flash composite output index improved unexpectedly to 55.3 in April from 55.1 in March. The reading was forecast to fall to 54.8.
France's private sector activity expanded at a faster pace in April, flash survey data from IHS Markit showed Monday. The composite output index rose to 56.9 in April from 56.3 in March. The expected reading was 55.9.
UK household finances deteriorated at the start of the second quarter, survey data from IHS Markit showed Monday. The household finance index remained unchanged at 43.2 in April. A score below 50 suggests a moderate deterioration in household finances with the rate of decrease broadly in line with that seen over the last 12 months.
A report released by the National Association of Realtors on Monday showed existing home sales in the U.S. increased by much more than expected in the month of March.
NAR said existing home sales climbed by 1.1 percent to an annual rate of 5.60 million in March after surging up by 3.0 percent to a rate of 5.54 million in February. Economists had expected existing home sales to edge up by 0.2 percent.
In commodities, crude oil futures for May delivery are down 1.01 or 1.48 percent at $67.39 a barrel.
Natural gas for May is down 0.002 or 0.07 percent at $2.737 per million btu.
Gold futures for June are down 14.00 or 1.05 percent at $1,324.30 an ounce.
Silver for May is down 0.508 or 2.96 percent at $16.655 an ounce.
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