(RTTNews.com) - The Canadian stock market is up slightly in early trade Tuesday, but has come off its early highs. Markets around the globe are up despite the escalation of the trade war between the U.S. and China.
U.S. President Donald Trump has announced new tariffs on approximately $200 billion worth of Chinese imports. The tariffs will initially be set at 10 percent compared to the 25 percent previously floated by the administration.
However, the tariffs are set to rise to 25 percent on January 1st, and Trump said the U.S. would impose tariffs on another $267 billion worth of Chinese imports if China takes retaliatory action.
A statement from China'sCommerce Ministry shrugged off the threat and pledged to retaliate in order to safeguard Chinese rights and interests and the global free trade order.
"The U.S. insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides," a Commerce Ministry spokesperson said.
The spokesperson added, "It is hoped that the U.S. will recognize the possible negative consequences of such actions and take convincing means to correct them in a timely manner."
Markets on Wall Street are inching higher in early trade Tuesday, following yesterday's pullback.
The majority of the European markets are trading slightly to the upside Tuesday.
The benchmark S&P/TSX Composite Index is up 32.55 points or 0.20 percent at 16,114.86.
On Monday, the index closed up by 68.82 points or 0.43 percent, at 16,082.31. The index scaled an intraday high of 16,117.95 and a low of 16,045.31.
The Energy Index is rising 1.26 percent. Canadian Natural Resources (CNQ.TO) is advancing 1.48 percent and Husky Energy (HSE.TO) is up 0.32 percent. Crescent Point Energy (CPG.TO) is increasing 2.64 percent and Cenovus Energy (CVE.TO) is adding 1.67 percent. Suncor Energy (SU.TO) is gaining 1.08 percent and Imperial Oil (IMO.TO) is higher by 0.49 percent. Encana (ECA.TO) is climbing 3.35 percent.
Enbridge Inc. (ENB.TO) and Enbridge Income Fund Holdings Inc. (ENF.TO) today announced that they have entered into a definitive arrangement agreement under which Enbridge will acquire all of the issued and outstanding public common shares of ENF. Each common share of ENF will be exchanged for 0.7350 of a common share of Enbridge and cash of $0.45 per ENF Share. ENF shareholders will also be entitled to receive the Enbridge fourth quarter dividend.
Enbridge Inc. and certain of its wholly owned U.S. subsidiaries, Enbridge Energy Partners, L.P. and Enbridge Energy Management, announced that they have entered into separate definitive agreements under which Enbridge will acquire all of the outstanding public Class A common units of EEP and all of the outstanding public Listed Shares of EEQ. Enbridge is falling 0.38 percent.
The Capped Information Technology Index is gaining 1.14 percent. BlackBerry (BB.TO) is rising 1.29 percent and Sierra Wireless (SW.TO) is up 0.90 percent. Constellation Software (CSU.TO) is gaining 0.65 percent and Descartes Systems Group (DSG.TO) is adding 1.34 percent.
The heavyweight Financial Index is increasing 0.15 percent. Bank of Montreal (BMO.TO) is higher by 0.22 percent and Toronto-Dominion Bank (TD.TO) is adding 0.11 percent. National Bank of Canada (NA.TO) is rising 0.25 percent and Royal Bank of Canada (RY.TO) is advancing 0.04 percent. Bank of Nova Scotia (BNS.TO) is gaining 0.35 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.19 percent.
The Gold Index is decreasing 0.34 percent. B2Gold (BTO.TO) is down 1.37 percent and IAMGOLD (IMG.TO) is weakening by 1.98 percent. Yamana Gold (YRI.TO) is falling 1.81 percent and Goldcorp (G.TO) is lower by 0.07 percent. Kinross Gold (K.TO) is declining 1.52 percent and Eldorado Gold (ELD.TO) is surrendering 1.77 percent.
The Capped Industrials Index is down 0.14 percent. Air Canada (AC.TO) is decreasing 0.52 percent and WestJet Airlines (WJA.TO) is losing 1 percent. Canadian National Railway (CNR.TO) is weakening by 0.35 percent and Canadian Pacific Railway (CP.TO) is dipping 0.03 percent. Canadian Pacific Railway has declared a quarterly dividend of $0.65 per share.
CannTrust Holdings Inc. (TRST.TO) announced today that it has completed its first shipment of cannabis oils to Danish Joint Venture Partner Stenocare. With this the JV is offering the first and only medical cannabis oils to be accepted onto the Danish Medicine List by the Danish Medicine Agency. The stock is rising 2.82 percent.
On the economic front, a report from Statistics Canada this morning showed that Canadian manufacturing sales rose 0.9 percent in July. Economists had expected an increase of 0.6 percent.
Homebuilder confidence in the U.S. remained firm in the month of September, according to a report released by the National Association of Home Builders on Tuesday.
The report said the NAHB/Wells Fargo Housing Market Index came in at 67 in September, unchanged from August. Economists had expected the index to edge down to 66.
In commodities, crude oil futures for October delivery are up 1.14 or 1.65 percent at $70.05 a barrel.
Natural gas for October is up 0.067 or 2.38 percent at $2.881 per million btu.
Gold futures for December are down 1.80 or 0.15 percent at $1,204.00 an ounce.
Silver for December is down 0.048 or 0.34 percent at $14.175 an ounce.
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