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Canadian Stocks Are Climbing On Global Cues - Canadian Commentary

The Canadian stock market is logging nearly a triple digit increase Monday morning. Strength in global markets is helping to drive early gains on Bay Street. The heavyweight financial sector is turning in a solid performance, while healthcare and information technology stocks are also up sharply this morning.

Markets in Europe are trading solidly in positive territory Monday. The market jumped at the open, but have since remained stuck in a sideways trend. French president Emmanuel Macron's party scored an overwhelming victory in the second round of parliamentary elections and Brexit talks have begun in Brussels.

Markets in the United States are rising in early trade Monday. A lack of major U.S. economic data is keeping some traders on the sidelines, but strength in the overseas markets is helping to drive early gains.

The benchmark S&P/TSX Composite Index is up 97.61 points or 0.64 percent at 15,290.15.

On Friday, the index closed up 32.12 points or 0.21 percent, at 15,192.54. The index scaled an intraday high of 15,214.21 and a low of 15,092.28.

The Capped Information Technology Index is gaining 1.68 Constellation Software (CSU.TO) is increasing 2.35 percent and BlackBerry (BB.TO) is rising 1.29 percent. Sierra Wireless (SW.TO) is climbing 2.18 percent and Descartes Systems Group (DSG.TO) is adding 1.13 percent.

The Capped Healthcare Index is higher by 1.48 percent. Concordia International (CXR.TO) is advancing 3.55 percent and Extendicare (EXE.TO) is adding 0.10 percent.

Valeant Pharmaceuticals International (VRX.TO) is climbing 4.76 percent announced its board has elected John Paulson to serve as a director, effective June 14, 2017. Paulson is the president of Paulson & Co., Inc., a New York-based investment firm.

The heavyweight Financial Index is increasing 0.96 percent. Royal Bank of Canada (RY.TO) is up 0.94 percent and Bank of Nova Scotia (BNS.TO) is gaining 1.03 percent. Toronto-Dominion Bank (TD.TO) is rising 1.03 percent and Canadian Imperial Bank of Commerce (CM.TO) is advancing 0.62 percent. Bank of Montreal (BMO.TO) is climbing 0.88 percent and National Bank of Canada (NA.TO) is adding 0.85 percent.

The Capped Telecommunication Services Index is up 0.67 percent. TELUS (T.TO) is climbing 0.31 percent and Rogers Communications (RCI-B.TO) is gaining 0.71 percent. BCE (BCE.TO) is also rising 0.82 percent.

The Capped Industrials Index is up 0.58 percent. Canadian National Railway (CNR.TO) is gaining 0.58 percent and Canadian Pacific Railway (CP.TO) is rising 0.74 percent. Air Canada (AC.TO) is climbing 1.69 percent and Bombardier (BBD-B.TO) is advancing 2.02 percent. Finning International (FTT.TO) is also adding 1.02 percent.

The Capped Materials Index is up 0.43 percent. Silver Wheaton (SLW.TO) is rising 0.85 percent and Agrium (AGU.TO) is adding 0.10 percent. Potash Corp. of Saskatchewan (POT.TO) is higher by 0.18 percent.

The Energy Index is rising 0.23 percent. Crude oil prices are steady Monday morning after falling sharply last week. The price of crude is holding just under $45 a barrel.

Cenovus Energy (CVE.TO) is gaining 1.14 percent and Canadian Natural Resources (CNQ.TO) is increasing 0.51 percent. Suncor Energy (SU.TO) is rising 0.28 percent and Husky Energy (HSE.TO) is climbing 0.96 percent. Imperial Oil (IMO.TO) is advancing 0.59 percent.

The Gold Index is declining 0.13 percent. Gold prices are falling Monday, extending recent losses in the aftermath of last week's rate hike by the Federal Reserve.

Kinross Gold (K.TO) is falling 0.74 percent and B2Gold (BTO.TO) is losing 0.82 percent.

NOVADAQ Technologies Inc. (NDQ.TO) announced a definitive arrangement with Stryker Corp. pursuant to which Stryker has agreed to acquire all of the issued and outstanding shares of NOVADAQ for $11.75 per share in cash, or $701 million. Shares are soaring 95.57 percent.

Land & Buildings Investment Management, LLC said it has issued a letter to the board of directors of Hudson's Bay Co. (HBC.TO), calling on the department store operator to evaluate all strategic alternatives to maximize shareholder value. Land & Buildings is a holder of about 4.3 percent of Hudson's Bay shares. Hudson's Bay is climbing 15.32 percent.

On the economic front, Eurozone construction output recovered in April after declining in March, data from Eurostat showed Monday. Construction output rose 0.3 percent month-on-month in April, reversing a 1.1 percent fall in March.

The job vacancy rate in the euro area increased in the first quarter, figures from Eurostat showed Monday. The job vacancy rate rose to 1.9 percent in the first quarter from 1.7 percent in the previous period.

British households' finance outlook worsened further in June and their financial pressures remained sharp on higher living costs, results of a survey by IHS Markit and financial information provider Ipsos Mori revealed Monday. The seasonally adjusted Household Finance Index, or HFI, rose to 43.8 in June from 42.6 in May.

The average asking price for a house in the United Kingdom was down 0.4 percent on month in June, property tracking website Rightmove said on Monday - coming in at 316,109 pounds. That follows the 1.2 percent increase in May.

In commodities, crude oil futures for July delivery are up 0.11 or 0.25 percent at $44.85 a barrel.

Natural gas for July is down 0.136 or 4.48 percent at $2.901 per million btu.

Gold futures for August are down $6.90 or 0.55 percent at $1,249.60 an ounce.

Silver for July is down $0.136 or 0.82 percent at $16.525 an ounce.

by RTTNews Staff Writer

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