Quantcast

Canadian Stocks Are Recovering Some Lost Ground - Canadian Commentary


Shutterstock photo


(RTTNews.com) - The Canadian stock market is rising in early trade Tuesday, after suffering a triple-digit decline at the start of the week. The majority of the Canadian sectors are trading in the green. However, gold and energy stocks are struggling as commodity prices fall.

The majority of the European markets are down in choppy trade Tuesday. Concerns over the trade dispute between China and the U.S. are weighing on sentiment after U.S. President Trump warned of more tariffs if talks next month fail to ease the trade war.

Markets on Wall Street are climbing in early trade Tuesday. Bargain hunting is contributing to the gains, as investors snap up stocks at reduced prices. However, traders appear cautious after yesterday's early gains vanished.

The benchmark S&P/TSX Composite Index is up 64.83 points or 0.44 percent at 14,786.58.

On Monday, the index closed down by 166.51 points or 1.12 percent, at 14,721.75. The index scaled an intraday high of 15,019.63 and a low of 14,639.70.

The Capped Industrials Index is up 1.71 percent. Canadian Pacific Railway (CP.TO) is rising 1.86 percent and Canadian National Railway (CNR.TO) is higher by 2.23 percent. Finning International (FTT.TO) is advancing 0.15 percent.

WestJet Airlines (WJA.TO) is gaining 0.26 percent after it reported a third-quarter profit of $45.9 million, down from a profit of $135.9 million in the same quarter last year.

The heavyweight Financial Index is increasing 0.65 percent. Bank of Nova Scotia (BNS.TO) is gaining 0.35 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.54 percent. National Bank of Canada (NA.TO) is higher by 0.42 percent and Royal Bank of Canada (RY.TO) is climbing 0.46 percent. Toronto-Dominion Bank (TD.TO) is rising 0.36 percent and Bank of Montreal (BMO.TO) is advancing 0.79 percent.

The Capped Telecommunication Services Index is up 0.80 percent. BCE (BCE.TO) is higher by 0.63 percent and TELUS (T.TO) is gaining 0.65 percent. Rogers Communications Inc. (RCI.B.TO) is rising 0.93 percent.

The Capped Information Technology Index is gaining 0.42 percent. BlackBerry (BB.TO) is rising 1.47 percent and Sierra Wireless (SW.TO) is up 1.89 percent. Descartes Systems Group (DSG.TO) is adding 0.63 percent.

The Gold Index is decreasing 0.42 percent. Kinross Gold (K.TO) is lower by 0.29 percent and Goldcorp (G.TO) is losing 0.55 percent. Barrick Gold (ABX.TO) is declining 1.44 percent and IAMGOLD (IMG.TO) is falling 0.43 percent.

The Energy Index is falling 0.07 percent. Encana (ECA.TO) is down 0.46 percent and Crescent Point Energy (CPG.TO) is weakening by 1.09 percent. Cenovus Energy (CVE.TO) is declining 0.23 percent and Husky Energy (HSE.TO) is losing 0.38 percent. Enbridge (ENB.TO) is surrendering 0.62 percent.

AltaGas Ltd. (ALA.TO) is sinking 8.45 percent after it reported a net loss of $726 million ($2.78 per share) for the third quarter, mainly due to provisions for assets. Normalized net loss for the third quarter was $17 million or $0.07 per share.

On the economic front, the euro area economy grew at a slower pace in the third quarter, preliminary flash estimate from Eurostat showed Tuesday.

Gross domestic product expanded only 0.2 percent sequentially after rising 0.4 percent in the second quarter. The rate was forecast to remain at 0.4 percent.

Elsewhere, survey data revealed further deterioration in economic confidence in Eurozone. The economic sentiment index slid to 109.8 in October from 110.9 a month ago.

Germany's jobless claims decreased in October from the previous month, data from the Federal Labor Agency showed Tuesday.

Jobless claims decreased by adjusted 11,000 in October from the previous month compared to the expected fall of 12,000.

The unemployment rate held steady at 5.1 percent, in line with expectations, and also the lowest since German reunification in 1990.

Germany's consumer price inflation reached its highest level since late 2008, preliminary data from Destatis showed Tuesday. Consumer prices advanced 2.5 percent annually in October, following September's 2.3 percent increase. This was the highest rate since September 2008 and above the expected rate of 2.4 percent.

France's economy expanded at a faster pace in the third quarter largely driven by domestic demand and exports, first estimate from the statistical office Insee showed Tuesday. Gross domestic product advanced 0.4 percent sequentially, in line with expectations, following second quarter's 0.2 percent expansion.

France's household consumption declined more-than-expected in September due to the sharp decrease in manufactured goods and energy spending, figures from the statistical office Insee revealed Tuesday. Household spending dropped 1.7 percent on a monthly basis, in contrast to a 1.1 percent rise in August.

British retail sales growth eased noticeably in October after four straight months of firm sales growth during the summer, the latest Distributive Trades Survey from the Confederation of British Industry showed Tuesday.

The retail sales balance fell to +5 percent in October. Nonetheless, retailers expect sales growth to pick-up next month, with the balance at +17 percent.

A report released by the Conference Board on Tuesday showed a continued increase in U.S. consumer confidence in the month of October. The Conference Board said its consumer confidence index rose to 137.9 in October from a downwardly revised 135.3 in September.

Economists had expected the consumer confidence index to drop to 136.3 from the 138.4 originally reported for the previous month.

In commodities, crude oil futures for November delivery are down 1.33 or 1.98 percent at $65.71 a barrel.

Natural gas for November is up 0.031 or 0.97 percent at $3.229 per million btu.

Gold futures for December are down 0.90 or 0.07 percent at $1,226.70 an ounce.

Silver for December is up 0.053 or 0.37 percent at $14.495 an ounce.


Read the original article on RTTNews (http://www.rttnews.com/2949170/canadian-stocks-are-recovering-some-lost-ground-canadian-commentary.aspx)


For comments and feedback: contact editorial@rttnews.com




This article appears in: Banking and Loans , Economy , US Markets , Oil , Stocks , Retirement
Referenced Symbols: ABX ,



More from RTT News

Subscribe






See All RTT news











Research Brokers before you trade

Want to trade FX?