(RTTNews.com) - The Canadian stock market got off to a weak start Tuesday, but has since inched into positive territory. Gold and energy stocks are struggling as commodity prices fall. Meanwhile, healthcare, industrial and financial stocks are providing support.
The bulk of the European markets have slipped into negative territory Tuesday. A mixed batch of economic data and corporate earnings has put traders in an uncertain mood.
Markets on Wall Street are trading in the red this morning, trimming yesterday's gains. U.S. retail sales data was in line with expectations this morning, while New York manufacturing data and homebuilder confidence came in better than expected.
The benchmark S&P/TSX Composite Index is up 19.69 points or 0.12 percent at 16,105.30.
On Monday, the index closed up 102.29 points or 0.64 percent, at 16,085.61. The index scaled an intraday high of 16,101.55 and a low of 16,016.86.
The Capped Healthcare Index is higher by 1.30 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 5.44 percent and ProMetic Life Sciences (PLI.TO) is adding 1.37 percent. Extendicare (EXE.TO) is gaining 1.33 percent.
The Capped Industrials Index is up 0.47 percent. Canadian National Railway (CNR.TO) is climbing 1.59 percent and Air Canada (AC.TO) is advancing 1.91 percent. Bombardier (BBD-B.TO) is rising 1.07 percent.
The heavyweight Financial Index is increasing 0.43 percent. Bank of Montreal (BMO.TO) is gaining 0.16 percent and Royal Bank of Canada (RY.TO) is advancing 0.39 percent. Toronto-Dominion Bank (TD.TO) is rising 0.55 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.77 percent. Bank of Nova Scotia (BNS.TO) is climbing 0.35 percent.
The Energy Index is rising 0.12 percent. Crude oil prices have turned lower Tuesday morning, ahead of U.S. inventory data.
Encana (ECA.TO) is higher by 1.12 percent and Husky Energy (HSE.TO) is climbing 1.67 percent. Imperial Oil (IMO.TO) is up 0.02 percent and Enbridge (ENB.TO) is gaining 0.26 percent
The Gold Index is decreasing 1.43 percent. Gold prices are sinking Tuesday morning and have dropped below $1300 an ounce.
Barrick Gold (ABX.TO) is losing 1.74 percent and Kinross Gold (K.TO) is weakening by 1.88 percent. Eldorado Gold (ELD.TO) is lower by 0.82 percent and B2Gold (BTO.TO) is down 1.65 percent. Yamana Gold (YRI.TO) is losing 3.73 percent and Goldcorp (G.TO) is falling 2.15 percent. IAMGOLD (IMG.TO) is surrendering 1.91 percent.
The Capped Materials Index is down 0.75 percent. Agnico Eagle Mines (AEM.TO) is falling 1.34 percent and Franco-Nevada (FNV.TO) is losing 1.82 percent.
Hydro One Ltd.(H.TO) is rising 0.91 percent after it increased its dividend by 5%.
Aurora Cannabis Inc.(ACB.TO) is losing 0.63 percent after it has taken control of Hempco with a 52% stake. Hempco secures low-cost raw material for the potential production of CBD extracts once new legislation is in place allowing whole (hemp) plant utilization.
On the economic front, China's industrial production growth improved more than expected in April, while retail sales and fixed asset investment grew at slower rates reflecting softer growth momentum.
Industrial production growth accelerated to 7 percent in April from 6 percent in March, the National Bureau of Statistics reported Tuesday. The rate also exceeded the expected 6.4 percent.
Retail sales grew 9.4 percent year-on-year in April, slower than the 10.1 percent increase seen in March. Sales were forecast to climb 10 percent.
The Eurozone economy expanded at a slower pace as previously estimated in the first quarter, flash estimate from Eurostat showed Tuesday. Gross domestic product grew 0.4 percent sequentially in the first quarter, slower than the 0.7 percent expansion seen a quarter ago. The rate came in line with the estimate released on May 2.
Germany's economic growth halved in the first quarter on weak trade, data from Destatis showed Tuesday. Gross domestic product grew 0.3 percent sequentially, slower than the 0.6 percent expansion seen in the previous quarter and the expected rate of 0.4 percent. This was the weakest growth in more than a year.
Germany's economic sentiment remained unchanged at a five-and-a-half-year low in May, survey data from the Mannheim-based think tank ZEW showed Tuesday. The ZEW Indicator of Economic Sentiment held steady at -8.2 in May, the lowest since November 2012. The score also matched economists' expectations.
France's consumer price inflation remained stable as initially estimated in April, latest figures from the statistical office Insee showed Tuesday. Consumer prices climbed 1.6 percent year-over-year in April, the same rate of increase as in March. That was in line with the flash data published on April 27.
The UK unemployment rate remained unchanged at the lowest level since 1975, the Office for National Statistics showed Tuesday. The ILO jobless rate remained at 4.2 percent in the first quarter, but down from 4.6 percent a year ago. This was the joint lowest since 1975.
Retail sales in the U.S. increased in line with economist estimates in the month of April, according to a report released by the Commerce Department on Tuesday. The Commerce Department said retail sales rose by 0.3 percent in April after climbing by an upwardly revised 0.8 percent in March.
Economists had expected sales to rise by 0.3 percent compared to the 0.6 percent increase originally reported for the previous month.
After reporting a notable slowdown in the pace of growth in regional manufacturing activity in the previous month, the Federal Reserve Bank of New York released a report on Tuesday showing an unexpected rebound in the pace of growth in May.
The New York Fed said its general business conditions index jumped to 20.1 in May from 15.8 in April, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to edge down to 15.0.
Homebuilder confidence in the U.S. unexpectedly improved in the month of May, according to a report released by the National Association of Home Builders on Tuesday.
The report said the NAHB/Wells Fargo Housing Market Index rose to 70 in May from a downwardly revised 68 in April. Economists had expected the index to come in unchanged compared to the 69 originally reported for the previous month.
In commodities, crude oil futures for June delivery are down 0.31 or 0.44 percent at $70.65 a barrel.
Natural gas for June is up 0.009 or 0.32 percent at $2.851 per million btu.
Gold futures for June are down 23.79 or 1.81 percent at $1,294.40 an ounce.
Silver for July is down 0.385 or 2.31 percent at $16.26 an ounce.
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