Plus   Neg

Canadian Stocks Are Rising At The Start Of The Week - Canadian Commentary

The Canadian stock market is up slightly in early trade Monday. Gold, healthcare and energy stocks are leading the way higher this morning. Gold prices are rising at the start of the new trading week, while crude oil prices are holding around $46 a barrel. Investors were encouraged by solid GDP data from China, but appear cautious ahead of the start of the U.S. earnings reporting season.

Markets in Europe are turning in a mixed performance Monday, in choppy trade. Mining stocks performed well following the release of the better than expected Chinese GDP report.

Markets in the United States are little changed in early trade Monday. Investors appear reluctant to make any major moves ahead of the start of earnings reporting season later this week.

The benchmark S&P/TSX Composite Index is up 6.74 points or 0.04 percent at 15,181.55.

On Friday, the index closed up 39.81 points or 0.26 percent, at 15,174.81. The index scaled an intraday high of 15,208.39 and a low of 14,130.06.

The Gold Index is advancing 1.48 percent. Gold prices are rising Monday morning, extending last week's gains ahead of a deluge of earnings reports from America's most prominent companies.

B2Gold (BTO.TO) is gaining 1.45 percent and Barrick Gold (ABX.TO) is advancing 1.58 percent. Eldorado Gold (ELD.TO) is up 2.30 percent and Kinross Gold (K.TO) is climbing 2.73 percent. IAMGOLD (IMG.TO) is rising 2.02 percent and Yamana Gold (YRI.TO) is adding 3.33 percent. Goldcorp (G.TO) is also increasing 1.70 percent.

The Capped Materials Index is up 1.48 percent. Agnico Eagle Mines (AEM.TO) is climbing 1.19 percent and Franco-Nevada (FNV.TO) is gaining 0.78 percent.

The Capped Healthcare Index is higher by 1.08 percent. Extendicare (EXE.TO) is up 0.10 percent.

Valeant Pharmaceuticals International (VRX.TO) is climbing 1.24 percent. The company will sell its Obagi Medical Products business for $190 million in cash to Haitong International Zhonghua Finance Acquisition Fund.

The Energy Index is rising 0.38 percent. Crude oil prices are dipping this morning, but are holding above $46 a barrel.

Suncor Energy (SU.TO) is gaining 0.03 percent and Canadian Natural Resources (CNQ.TO) is climbing 1.05 percent. Cenovus Energy (CVE.TO) is up 0.65 percent and Enbridge (ENB.TO) is advancing 0.06 percent. Husky Energy (HSE.TO) is increasing 1.07 percent and Imperial Oil (IMO.TO) is adding 0.35 percent.

The Capped Telecommunication Services Index is up 0.14 percent. Rogers Communications (RCI-B.TO) is gaining 0.24 percent and TELUS (T.TO) is increasing 0.09 percent.

The Capped Industrials Index is down 0.60 percent. Canadian National Railway (CNR.TO) is lower by 0.19 percent and Canadian Pacific Railway (CP.TO) is falling 1.17 percent. Bombardier (BBD-B.TO) is declining 0.42 percent and Air Canada (AC.TO) is losing 2.09 percent.

The Capped Information Technology Index is losing 0.54 percent. BlackBerry (BB.TO) is falling 0.79 percent and Sierra Wireless (SW.TO) is dropping 1.48 percent.

The heavyweight Financial Index is decreasing 0.18 percent. Canadian Imperial Bank of Commerce (CM.TO) is weakening by 0.10 percent and Bank of Montreal (BMO.TO) is surrendering 0.13 percent. Royal Bank of Canada (RY.TO) is falling 0.23 percent and Toronto-Dominion Bank (TD.TO) is down 0.21 percent.

Dominion Diamond Corp. (DDC.TO) will be acquired by Washington Companies for $14.25 per share in cash, or a total equity value of about $1.2 billion. Shares are rising 4.85 percent.

On the economic front, the Canadian Real Estate Association reported this morning that Canadian existing home sales dropped 6.7 percent in June.

China's economy expanded at a steady pace in the second quarter on domestic spending and exports despite measures taken to rein in financial risks.

Gross domestic product grew 6.9 percent year-on-year, the same pace of expansion as seen in the first quarter, the National Bureau of Statistics said Monday. The annual growth was forecast to slow to 6.8 percent.

Eurozone inflation slowed to a 6-month low in June as estimated, final data from Eurostat showed Monday. Inflation eased slightly to 1.3 percent in June from 1.4 percent in May. The rate came in line with the flash estimate published on June 30.

UK house prices increased only marginally in July as subdued wage growth weighed on affordability, property website Rightmove reported Monday. Asking prices edged up 0.1 percent in July from June. Average asking prices of property reached GBP 316,421.

UK house prices dropped for the third straight month in June, the LSL Property Services/Acadata showed Monday. House prices dropped 0.2 percent in June from May, when they slid 0.1 percent. The average price in June was GBP 301,114.

Activity in the New York manufacturing sector grew at a notably slower pace in the month of July, according to a report released by the Federal Reserve Bank of New York on Monday. The New York Fed said its general business conditions index dropped to 9.8 in July from '19.8 in June, although a positive reading still indicates growth. Economists had expected the index to fall to 15.0.

In commodities, crude oil futures for August delivery are down 0.12 or 0.26 percent at $46.42 a barrel.

Natural gas for August is up 0.059 or 1.98 percent at $3.039 per million btu.

Gold futures for August are up 6.50 or 0.53 percent at $1,234.00 an ounce.

Silver for September is up 0.222 or 1.39 percent at $16.155 an ounce.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Follow RTT