(RTTNews.com) - The Canadian stock market is rallying higher in early trade Wednesday. Energy and gold stocks are driving the market higher this morning as commodity prices climb. Crude oil prices have jumped to their highest level in three years due to falling U.S. crude inventories.
As expected, the Bank of Canada maintained its overnight rate target at 1.25 percent this morning.
The majority of the European markets are up slightly Wednesday, but have been stuck in a sideways trend throughout the session. Traders were disappointed after the region's consumer price inflation rose more slowly than first estimated in the 12 months through March
Markets on Wall Street are struggling in early trade Wednesday, following two days of sharp gains. Traders are looking ahead to the release of the Federal Reserve's Beige Book this afternoon.
The benchmark S&P/TSX Composite Index is up 160.87 points or 1.05 percent at 15,514.17.
On Tuesday, the index closed up 52.92 points or 0.35 percent, at 15,353.30. The index scaled an intraday high of 15,404.46 and a low of 15,324.96.
The Gold Index is increasing 1.82 percent. Gold prices are up slightly Wednesday morning. The price of the precious metal has seen relatively little movement since January, despite the extreme volatility in equities.
Kinross Gold Corp. (K.TO) is climbing 2.87 percent and Goldcorp (G.TO) is adding 1.89 percent. Barrick Gold (ABX.TO) is advancing 2.04 percent and B2Gold (BTO.TO) is rising 2.74 percent. IAMGOLD (IMG.TO) is increasing 3.02 percent and Yamana Gold (YRI.TO) is up 3.78 percent. Eldorado Gold (ELD.TO) is gaining 1.64 percent.
The Capped Materials Index is up 1.86 percent. Agnico Eagle Mines (AEM.TO) is rising 2.12 percent and Franco-Nevada (FNV.TO) is higher by 1.00 percent. Nutrien (NTR.TO) is adding 1.34 percent.
The Energy Index is rising 1.71 percent. Crude oil prices have climbed back to 3-year highs after an industry report showed a significant drop in U.S. oil inventories.
The American Petroleum Institute (API) reported a draw of 1.047 million barrels of United States crude oil inventories for the week ending April 13, in line with estimates.
The EIA reported this morning that U.S. crude inventories declined by 1.1 million barrels last week.
Crescent Point Energy (CPG.TO) is rising 4.17 percent and Suncor Energy (SU.TO) is up 0.95 percent. Husky Energy (HSE.TO) is gaining 1.94 percent and Encana (ECA.TO) is adding 1.89 percent. Enbridge (ENB.TO) is climbing 1.62 percent and Cenovus Energy (CVE.TO) is advancing 2.78 percent. Canadian Natural Resources (CNQ.TO) is gaining 1.49 percent and Imperial Oil (IMO.TO) is higher by 1.02 percent.
The heavyweight Financial Index is increasing 0.73 percent. Bank of Montreal (BMO.TO) is gaining 0.43 percent and Royal Bank of Canada (RY.TO) is advancing 0.84 percent. National Bank of Canada (NA.TO) is up 0.59 percent and Toronto-Dominion Bank (TD.TO) is adding 0.66 percent. Bank of Nova Scotia (BNS.TO) is rising 0.89 percent and Canadian Imperial Bank of Commerce (CM.TO) up 0.57 percent.
The Capped Industrials Index is up 0.82 percent. Canadian National Railway (CNR.TO) is up 1.12 percent and Canadian Pacific Railway (CP.TO) is climbing 0.62 percent. Bombardier (BBD-B.TO) is gaining 2.92 percent and Finning International (FTT.TO) is adding 1.08 percent.
The Capped Telecommunication Services Index is up 0.80 percent. TELUS (T.TO) is gaining 0.60 percent and Rogers Communications (RCI-B.TO) is adding 1.37 percent. BCE (BCE.TO) is higher by 0.26 percent.
The Capped Healthcare Index is higher by 0.81 percent. Valeant Pharmaceuticals International (VRX.TO) is climbing 0.64 percent and ProMetic Life Sciences is gaining 2.60 percent.
The Capped Information Technology Index is gaining 1.86 percent. Sierra Wireless (SW.TO) is rising 2.21 percent. Constellation Software (CSU.TO) is climbing 0.90 percent and Descartes Systems Group (DSG.TO) is adding 0.05 percent.
SNC Lavalin (SNC.TO) is gaining 1.10 percent after it won a considerable contract with Saudi state-owned oil giant Aramco.
Winter fashion maker Roots (ROOT.TO) is surging 8.37 percent after it topped profit estimates for the fourth quarter.
On the economic front, Eurozone inflation accelerated in March albeit at a slower than initially estimated pace, final data from Eurostat showed Wednesday. Inflation rose to 1.3 percent in March from 1.1 percent in February. The rate was revised down from 1.4 percent estimated on April 4.
Eurozone construction output fell for the second straight month in February, Eurostat reported Wednesday. Construction output declined 0.5 percent month-on-month, slower than the 0.8 percent decrease in January.
UK inflation slowed to a one year-low in March, diminishing scope for a rate hike in May as markets widely expect. Consumer prices climbed 2.5 percent year-on-year in March, slower than the 2.7 percent increase posted in February, the Office for National Statistics said Wednesday.
Inflation was forecast to remain unchanged at 2.7 percent. This was the weakest rate since March 2017, when prices gained 2.3 percent.
British house price inflation moderated for the second successive month in February, figures from the Office for National Statistics showed Wednesday. The house price index climbed 4.4 percent year-over-year in February, slower than the 4.7 percent rise in January, which was revised down from a 4.9 percent increase reported earlier.
In commodities, crude oil futures for May delivery are up 1.23 or 1.85 percent at $67.75 a barrel.
Natural gas for May is up 0.044 or 1.61 percent at $2.782 per million btu.
Gold futures for June are up 5.40 or 0.40 percent at $1,354.90 an ounce.
Silver for May is up 0.433 or 2.58 percent at $17.22 an ounce.
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