The Canadian stock market is rising in early trade Tuesday, adding to the gains of the previous session. Healthcare and energy stocks are leading the way higher this morning. Crude oil prices have risen to around $48 a barrel, which has provided a boost to the energy sector.
The majority of the European markets are trading in the green Tuesday, adding to the gains of the previous session. One notable exception is the UK markets, which are falling after data showed British consumer price inflation accelerated more than anticipated to hit the highest level in five years in August.
Markets in the United States got off to a positive start Tuesday, but have pared some of their early gains. Traders are attempting to build on Monday's gains, which were sparked by easing geopolitical concerns and reports that the damage from Hurricane Irma was not as bad as people had feared.
The benchmark S&P/TSX Composite Index is up 54.58 points or 0.36 percent at 15,094.88.
On Monday, the index closed up 54.98 points or 0.37 percent, at 15,040.30. The index scaled an intraday high of 15,067.80 and a low of 15,015.58.
The Capped Healthcare Index is higher by 1.10 percent. Valeant Pharmaceuticals International is rising 1.51 percent and Extendicare (EXE.TO) is adding 0.32 percent.
The Energy Index is rising 0.92 percent. Crude oil prices are inching higher Tuesday morning, adding to yesterday's gains amid signs that OPEC will further extend its supply quota plan.
OPEC and its allies are discussing extending the oil production cuts that expire in March 2018 by more than three months, Bloomberg reports.
Crescent Point Energy (CPG.TO) is climbing 1.98 percent and Enbridge (ENB.TO) is adding 0.28 percent. Encana (ECA.TO) is advancing 1.66 percent and Suncor Energy (SU.TO) is higher by 0.80 percent. Cenovus Energy (CVE.TO) is increasing 2.47 percent and Imperial Oil (IMO.TO) is gaining 1.01 percent. Canadian Natural Resources (CNQ.TO) is also gaining 0.44 percent.
The Capped Materials Index is up 0.59 percent. Franco-Nevada (FNV.TO) is gaining 0.73 percent and Agrium (AGU.TO) is rising 0.58 percent. Potash Corp. of Saskatchewan (POT.TO) is also higher by 0.45 percent.
The Capped Industrials Index is up 0.54 percent. Finning International (FTT.TO) is advancing 0.29 percent and Air Canada (AC.TO) is climbing 2.63 percent. Canadian National Railway (CNR.TO) is advancing 0.42 percent and Canadian Pacific Railway (CP.TO) is higher by 0.67 percent. Bombardier (BBD-B.TO) is adding 1.24 percent.
WestJet Airlines (WJA.TO) is increasing 1.21 percent. The company said its load factor was up sharply in August.
The Capped Telecommunication Services Index is up 0.54 percent. BCE (BCE.TO) is rising 0.40 percent and TELUS (T.TO) is climbing 0.59 percent. Rogers Communications (RCI-B.TO) is gaining 0.64 percent.
The heavyweight Financial Index is increasing 0.37 percent. Royal Bank of Canada (RY.TO) is rising 0.34 percent and Bank of Nova Scotia (BNS.TO) is climbing 0.33 percent. Bank of Montreal (BMO.TO) is up 0.41 percent and Canadian Imperial Bank of Commerce (CM.TO) is advancing 0.15 percent. National Bank of Canada (NA.TO) is gaining 0.23 percent and Toronto-Dominion Bank (TD.TO) is adding 0.50 percent.
Manulife Financial (MFC.TO) is up 0.27 percent after the company announced numerous management changes. Steve Roder, Manulife's Chief Financial Officer, has decided to retire for personal reasons, effective year end.
Philip Witherington, currently the interim President and CEO of Manulife Asia, has been appointed Manulife's Chief Financial Officer, effective January 1, 2018, subject to immigration approvals.
The Gold Index is increasing 0.27 percent. Gold prices are slipping further Tuesday, as investors continue to transition out of safe havens in favor of riskier investments.
Eldorado Gold (ELD.TO) is gaining 0.43 percent and B2Gold (BTO.TO) is climbing 0.93 percent. Yamana Gold (YRI.TO) is rising 0.86 percent and Kinross Gold (K.TO) is advancing 0.97 percent. IAMGOLD (IMG.TO) is gaining 1.09 percent.
The Capped Information Technology Index is gaining 0.24 percent. BlackBerry (BB.TO) is rising 0.63 percent and Sierra Wireless (SW.TO) is climbing 2.82 percent.
On the economic front, UK inflation climbed more-than-expected in August to its joint highest level in over five years, driven by strong increase in clothing and petrol prices, and added pressure on the Bank of England rate-setters to raise interest rates amid the Brexit-fueled economic uncertainty.
The consumer price index rose 2.9 percent year-on-year following 2.6 percent increase in July. Economists had forecast 2.8 percent inflation.
British house price inflation held steady in July after accelerating in the prior month, figures from the Office for National Statistics showed Tuesday. The house price index climbed 5.1 percent year-over-year in July, the same rate of rise as in June, which was revised up from a 4.9 percent increase reported earlier.
In commodities, crude oil futures for October delivery are up 0.14 or 0.29 percent at $48.21 a barrel.
Natural gas for October is up 0.07 or 2.37 percent at $3.02 per million btu.
Gold futures for December are down 4.10 or 0.31 percent at $1,331.60 an ounce.
Silver for December is up 0.003 or 0.02 percent at $17.905 an ounce.
For comments and feedback contact: editorial@rttnews.com
Market Analysis