Canadian Stocks Are Climbing Despite Energy Weakness - Canadian Commentary

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(RTTNews.com) - The Canadian stock market is rising in early trade Tuesday. The majority of the Canadian sectors are trading in positive territory, with the notable exception of the energy sector. Energy stocks are under pressure due to the recent drop in crude oil prices.

Markets in Europe are turning in a mixed performance Tuesday, but remain little changed overall.

Markets on Wall Street are inching higher in early trade Tuesday, struggling to add to yesterday's gains.

The benchmark S&P/TSX Composite Index is up 104.17 points or 0.65 percent at 16,156.41.

On Monday, the index closed up by 8.07 points or 0.05 percent, at 16,052.24. The index scaled an intraday high of 16,121.22 and a low of 16,037.97.

The Capped Healthcare Index is higher by 3.38 percent. Valeant Pharmaceuticals International (VRX.TO) is climbing 5.45 percent and Extendicare (EXE.TO) is rising 0.53 percent.

The Capped Information Technology Index is gaining 1.68 percent. BlackBerry (BB.TO) is increasing 2.73 percent and Sierra Wireless (SW.TO) is up 0.98 percent. Descartes Systems Group (DSG.TO) is advancing 0.65 percent.

The Capped Materials Index is up 1.53 percent. Agnico Eagle Mines (AEM.TO) is rising 1.32 percent and Franco-Nevada (FNV.TO) is gaining 1.65 percent. Nutrien (NTR.TO) is adding 1.15 percent.

The Capped Telecommunication Services Index is up 1.28 percent. TELUS (T.TO) is gaining 0.94 percent and Rogers Communications (RCI-B.TO) is rising 1.56 percent. BCE (BCE.TO) is climbing 1.31 percent.

The Gold Index is increasing 1.06 percent. Gold prices are down slightly Tuesday morning, hovering around $1295 an ounce.

Goldcorp (G.TO) is up 1.62 and Eldorado Gold (ELD.TO) is higher by 1.40 percent. B2Gold (BTO.TO) is climbing 0.57 percent and Barrick Gold (ABX.TO) is rising 1.32 percent. IAMGOLD (IMG.TO) is higher by 0.75 percent and Yamana Gold (YRI.TO) is adding 0.14 percent. Kinross Gold (K.TO) is gaining 1.64 percent.

The Capped Industrials Index is up 0.71 percent. Canadian National Railway (CP.TO) is climbing 0.32 percent and Canadian Pacific Railway (CP.TO) is gaining 0.99 percent. Finning International (FTT.TO) is rising 0.21 percent and Bombardier (BBD-B.TO) is adding 1.48 percent.

The heavyweight Financial Index is increasing 0.31 percent. Toronto-Dominion Bank (TD.TO) is gaining 0.47 percent and Royal Bank of Canada (RY.TO) is climbing 0.35 percent. Canadian Imperial Bank of Commerce (CM.TO) is rising 0.43 percent and National Bank of Canada (NA.TO) is advancing 0.89 percent.

The Energy Index is falling 0.17 percent. Crude oil prices are nearly flat Tuesday morning, trading just below $65 a barrel.

Cenovus Energy (CVE.TO) is weakening by 0.08 percent and Suncor Energy (SU.TO) is down 1.74 percent.

On the economic front, China's private sector expanded at a steady pace in May amid broad-based upturn in both manufacturing and services, data from IHS Markit showed Tuesday. Nonetheless, growth remained slower than that seen at the start of 2018.

The Caixin composite output index remained unchanged at 52.3 in May, signaling a steady and moderate pace of expansion.

The services Purchasing Managers' Index also remained stable in May, at 52.9. A score above 50 indicates expansion in the sector.

Eurozone private sector expanded at the slowest pace in one-and-a-half years, as initially estimated, in May, final data from IHS Markit showed Tuesday. The composite output index dropped to 54.1 from 55.1 in April, but in line with the flash reading of 54.1. This was the lowest score since November 2016.

Eurozone retail sales logged a marginal growth in April, data from Eurostat showed Tuesday. Retail sales gained 0.1 percent month-on-month in April, slower than the 0.4 percent increase in March. Sales were forecast to grow 0.5 percent. Nonetheless, this was the third consecutive increase in turnover.

British service sector activity expanded at the fastest pace in three months in May, despite Brexit-related uncertainty, survey data from IHS Markit showed Tuesday. The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index, rose more-than-expected to 54.0 in May from 52.8 in April. The index was forecast to improve to 53.0.

Like-for-like sales in the United Kingdom were up 2.8 percent on year in May, the British Retail Consortium said on Tuesday. That beat expectations for an increase of 1 percent following the 4.2 percent contraction in April.

Activity in the U.S. service sector grew at a faster than expected rate in the month of May, according to a report released by the Institute for Supply Management on Tuesday. The ISM said its non-manufacturing index climbed to 58.6 in May from 56.8 in April, with a reading above 50 indicating growth in the service sector. Economists had expected the index to rise to 57.5.

In commodities, crude oil futures for July delivery are down 0.01 or 0.02 percent at $64.74 a barrel.

Natural gas for July is down 0.044 or 1.50 percent at $2.886 per million btu.

Gold futures for August are down 2.00 or 0.15 percent at $1,295.30 an ounce.

Silver for July is down 0.011 or 0.07 percent at $16.42 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2901922/canadian-stocks-are-climbing-despite-energy-weakness-canadian-commentary.aspx)

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This article appears in: Politics , World Markets , US Markets , Oil , Stocks
Referenced Symbols: ABX ,

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