(RTTNews.com) - The Canadian stock market is logging a triple digit increase Thursday morning, following the heavy losses of the previous two sessions. The rebound in commodity prices has provided a boost to energy and gold stocks in early trade.
Markets in Europe are trading solidly in positive territory Wednesday. Investor sentiment received a boost from media reports which suggested that Italian Deputy Prime Minister Matteo Salvini might be willing to compromise on a budget criticized by the European Union.
Markets on Wall Street are up modestly Wednesday morning. Bargain hunting is contributing to the early gains, as investors step in to buy stocks at reduced prices following a 2-day sell-off.
The benchmark S&P/TSX Composite Index is up 243.27 points or 1.64 percent at 15,120.27.
On Tuesday, the index closed down by 194.01 points or 1.29 percent, at 14,877.00. The index scaled an intraday high of 14,952.54 and a low of 14,810.6
The Energy Index is rising 1.96 percent. A report from the EIA this morning showed that U.S. crude inventories increased by 4.9 million barrels last week.
Imperial Oil (IMO.TO) is gaining 1.13 percent and Husky Energy (HSE.TO) is advancing 1.48 percent. Suncor Energy (SU.TO) is up 2.47 percent and Encana (ECA.TO) is higher by 3.84 percent. Canadian Natural Resources (CNQ.TO) is climbing 1.03 percent and Crescent Point Energy (CPG.TO) is adding 2.41 percent. Cenovus Energy (CVE.TO) is increasing 2.31 percent.
The Gold Index is increasing 2.50 percent. Goldcorp (G.TO) is climbing 2.61 percent and Barrick Gold (ABX.TO) is rising 2.65 percent. IAMGOLD (IMG.TO) is up 5.73 percent and Yamana Gold (YRI.TO) is higher by 3.72 percent. Kinross Gold (K.TO) is gaining 1.44 percent and B2Gold (BTO.TO) is advancing 1.43 percent. Eldorado Gold (ELD.TO) is adding 2.47 percent.
The Capped Materials Index is up 2.46 percent. Franco-Nevada (FNV.TO) is advancing 2.23 percent and Agnico Eagle Mines (AEM.TO) is rising 3.27 percent. Nutrien (NTR.TO) is gaining 1.40 percent.
The Capped Industrials Index is up 2.13 percent. Bombardier (BBD-B.TO) is increasing 6.57 percent and Finning International (FTT.TO) is gaining 3.90 percent. Canadian National Railway (CNR.TO) is advancing 2.67 percent and Canadian Pacific Railway (CP.TO) is higher by 3.00 percent. Air Canada (AC.TO) is climbing 2.99percent and WestJet Airlines (WJA.TO) is adding 2.04 percent.
The Capped Information Technology Index is gaining 1.65 percent. Constellation Software (CSU.TO) is up 2.19 percent and Descartes Systems Group (DSG.TO) is advancing 1.86 percent. BlackBerry (BB.TO) is rising 2.08 percent and Sierra Wireless (SW.TO) is higher by 1.90 percent.
The heavyweight Financial Index is increasing 1.55 percent. Bank of Nova Scotia (BNS.TO) is gaining 1.38 percent and Royal Bank of Canada (RY.TO) is up 2.01 percent. Toronto-Dominion Bank (TD.TO) is advancing 1.53 percent and Bank of Montreal (BMO.TO) is rising 1.31 percent. Canadian Imperial Bank of Commerce (CM.TO) is adding 1.46 percent and National Bank of Canada (NA.TO) is climbing 1.39 percent.
The Capped Telecommunication Services Index is up 1.14 percent. TELUS (T.TO) is gaining 0.90 percent and BCE (BCE.TO) is higher by 0.99 percent. Rogers Communications (RCI-B.TO) is rising 1.29 percent.
On the economic front, a report from Statistics Canada this morning showed that Canadian wholesale sales dropped 0.5 percent in September.
The UK budget deficit in October far exceeded expectations and was the biggest for the month in three years, raising the likelihood of the government missing its borrowing target for the fiscal year, official data showed on Wednesday.
The public sector net borrowing, or PSNB, excluding state banks was GBP 8.8 billion in October, which was the highest for the month since 2015, the Office for National Statistics said. Economists had forecast a deficit of GBP 6.1 billion. In September, the deficit was GBP 2.84 billion and the shortfall was GBP 7.23 billion in October 2017.
A report released by the Commerce Department on Wednesday showed a much steeper than expected drop in new orders for U.S. durable goods in the month of October, with the sharp decline largely reflecting a substantial decrease in orders for transportation equipment.
The Commerce Department said durable goods orders plunged by 4.4 percent in October following a revised 0.1 percent dip in September. Economists had expected orders to slump by 2.5 percent compared to the 0.7 percent increase that had been reported for the previous month.
A day earlier than usual due to the Thanksgiving Day holiday on Thursday, the Labor Department released a report on Wednesday showing first-time claims for U.S. unemployment benefits unexpectedly edged higher in the week ended November 17th.
The report said initial jobless claims rose to 224,000, an increase of 3,000 from the previous week's upwardly revised level of 221,000. Economists had expected jobless claims to slip to 215,000 from the 216,000 originally reported for the previous week.
After reporting six straight months of decreases, the National Association of Realtors released a report on Wednesday showing existing home sales in the U.S. rebounded by more than anticipated in the month October.
NAR said existing home sales surged up by 1.4 percent to an annual rate of 5.22 million in October after plunging by 3.4 percent to a rate of 5.15 million in September. Economists had expected existing home sales to jump by 1.0 percent.
Consumer sentiment in the U.S. unexpectedly deteriorated by more than initially estimated in the month of November, according to a report released by the University of Michigan on Wednesday. The report said the consumer sentiment index for November was downwardly revised to 97.5 from the preliminary reading of 98.3.
Economists had expected the consumer sentiment index to be unrevised at 98.3, which was still down slightly from 98.6 in October.
In commodities, crude oil futures for December delivery are up 0.96 or 1.80 percent at $54.39 a barrel.
Natural gas for December is up 0.089 or 1.97 percent at $4.612 per million btu.
Gold futures for December are up 7.40 or 0.61 percent at $1,228.60 an ounce.
Silver for December is up 0.251 or 1.76 percent at $14.52 an ounce.
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