Canadian Stocks Are Climbing On Energy Strength - Canadian Commentary

Shutterstock photo

(RTTNews.com) - The Canadian stock market is rising in early trade Friday, adding to the gains from the previous session. Energy stocks are leading the way higher this morning, as crude oil prices near $71 a barrel. Meanwhile, gold stocks are struggling as the price of the precious metal falls.

Markets in Europe are trading in the green Friday, extending recent gains.

Markets on Wall Street are struggling in early trade Friday. After opening slightly higher, the markets have since pared their gains. The pullback appears to be due to profit taking following the recent strength in the markets.

Traders are also looking forward to next week's Federal Reserve meeting. The Fed is widely expected to increase rates by another quarter point at the meeting.

The benchmark S&P/TSX Composite Index is up 34.24 points or 0.21 percent at 16,248.99.

On Thursday, the index closed up by 64.83 points or 0.40 percent, at 16,214.75. The index scaled an intraday high of 16,225.34 and a low of 16,147.05.

The Energy Index is rising 0.97 percent. Canadian Natural Resources (CNQ.TO) is advancing 1.10 percent and Husky Energy (HSE.TO) is up 2.40 percent. Crescent Point Energy (CPG.TO) is increasing 1.01 percent and Cenovus Energy (CVE.TO) is adding 1.09 percent. Suncor Energy (SU.TO) is gaining 1.50 percent and Imperial Oil (IMO.TO) is higher by 1.68 percent. Encana (ECA.TO) is climbing 0.43 percent.

The Capped Industrials Index is up 0.53 percent. Air Canada (AC.TO) is increasing 1.55 percent and WestJet Airlines (WJA.TO) is adding 0.55 percent. Finning International (FTT.TO) is gaining 0.62 percent. Canadian National Railway (CNR.TO) is climbing 0.47 percent and Canadian Pacific Railway (CP.TO) is rising 0.88 percent.

The Capped Information Technology Index is gaining 0.42 percent. BlackBerry (BB.TO) is rising 0.53 percent and Descartes Systems Group (DSG.TO) is climbing 0.92 percent. Constellation Software (CSU.TO) is up 1.43 percent.

The heavyweight Financial Index is increasing 0.15 percent. Bank of Montreal (BMO.TO) is higher by 0.33 percent and Bank of Nova Scotia (BNS.TO) is gaining 0.49 percent. National Bank of Canada (NA.TO) is advancing 0.51 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.38 percent.

The Gold Index is decreasing 0.53 percent. Goldcorp (G.TO) is lower by 1.08 percent and Barrick Gold (ABX.TO) is losing 1.46 percent. Kinross Gold (K.TO) is falling 0.52 percent and IAMGOLD (IMG.TO) is down 0.59 percent. Yamana Gold (YRI.TO) is surrendering 0.30 percent.

The Capped Materials Index is down 0.06 percent. Franco-Nevada (FNV.TO) is decreasing 0.50 percent and Agnico Eagle Mines (AEM.TO) is losing 0.70 percent. Nutrien (NTR.TO) is falling 0.67 percent.

On the economic front, data from Statistics Canada showed that retail sales rose 0.3 percent on a seasonally adjusted monthly basis. The rate matched expectations. It dropped 0.2 percent on month in June.

Core retail sales increased 0.9 percent, beating expectations of 0.6 percent. This follows a 0.1 percent slide last month.

Separate data showed that consumer inflation edged up 0.1 percent on a seasonally adjusted monthly basis in August. This follows a 0.5 percent gain in July and contradicted a 0.1 percent fall expected by economists.

Core CPI rose 0.1 percent in August, from a revised 0.5 percent increase seen in July.

Eurozone private sector grew at the second-weakest pace since late-2016 as manufacturing growth was subdued by stagnating export orders, flash survey data from IHS Markit showed Friday. The composite output index fell to 54.2 in September, while the score was forecast to remain unchanged at 54.5.

Germany's private sector growth moderated from a six-month high in September, survey data from IHS Markit showed Friday.

The composite output index fell to 55.3 in September from a six-month high of 55.6 in August. Nonetheless, the latest reading was still the second-best seen since February. The expected reading was 55.4.

France's private sector growth fell to its lowest level in 21 months during September, amid weaker gains in both manufacturing and service sectors, survey data from IHS Markit showed Friday. The flash France Composite Output Index dropped to 53.6 from 54.9 in August, the purchasing managers' survey showed. The reading was lower than the 54.6 economists had expected.

France's economy grew at a steady pace, as previously estimated, in the second quarter, detailed figures from Insee showed Friday. Gross domestic product advanced 0.2 percent sequentially, the same rate as seen in the first quarter, and in line with the second estimate published on August 29.

The UK budget deficit increased in August on higher expenditure amid subdued income growth, data from the Office for National Statistics showed Friday. Public sector net borrowing, excluding public sector banks, rose by GBP 2.4 billion from last year to GBP 6.8 billion in August. Borrowing was expected to fall to GBP 3.4 billion.

In commodities, crude oil futures for October delivery are up 0.61 or 0.87 percent at $70.93 a barrel.

Natural gas for October is up 0.002 or 0.07 percent at $2.978 per million btu.

Gold futures for December are down 8.90 or 0.73 percent at $1,202.40 an ounce.

Silver for December is up 0.05 or 0.35 percent at $14.355 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2937190/canadian-stocks-are-climbing-on-energy-strength-canadian-commentary.aspx)

For comments and feedback: contact editorial@rttnews.com

This article appears in: 401k , Insurance , Banking and Loans , US Markets , Oil , Retirement
Referenced Symbols: ABX ,

More from RTT News


See All RTT news

Research Brokers before you trade

Want to trade FX?