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Canadian Stocks Are Reversing After EIA Report - Canadian Commentary

The Canadian stock market got off to a positive start Wednesday, but has since pared its early gains. The market reversed after the release of the EIA report this morning, which showed a rise in U.S. crude inventories last week.

Markets in Europe are climbing Wednesday, putting an end to a 7-session losing streak. The recovery follows the positive close on Wall Street yesterday after the sharp sell-off earlier this week.

Markets on Wall Street are rising in early trade Wednesday, adding to the gains of the previous session. Investors remain in a cautious mood after the Dow Jones Industrial Average logged its largest ever single day decline earlier this week.

The benchmark S&P/TSX Composite Index is up 7.96 points or 0.05 percent at 15,371.89.

On Tuesday, the index closed up 29.12 points or 0.19 percent, at 15,363.93. The index scaled an intraday high of 15,401.83 and a low of 14,945.84.

The Capped Healthcare Index is higher by 1.96 percent Extendicare (EXE.TO) is rising 0.94 percent and Concordia International (CXR.TO) is gaining 1.27 percent.

The Capped Telecommunication Services Index is up 0.27 percent. BCE (BCE.TO) is advancing 0.55 percent and Rogers Communications (RCI-B.TO) is adding 0.61 percent.

The Capped Industrials Index is up 0.15 percent. Canadian Pacific Railway (CP.TO) is rising 0.19 percent and Air Canada (AC.TO) is higher by 0.13 percent. WestJet Airlines (WJA.TO) is gaining 2.70 percent

The Capped Materials Index is up 0.13 percent. Franco-Nevada (FNV.TO) is advancing 0.27 percent and Nutrien (NTR.TO) is increasing 0.89 percent.

The heavyweight Financial Index is increasing 0.07 percent. Bank of Montreal (BMO.TO) is climbing 0.04 percent and Canadian Imperial Bank of Commerce (CM.TO) is higher by 0.01 percent. National Bank of Canada (NA.TO) is gaining 0.61 percent.

The Gold Index is decreasing 0.51 percent. Gold prices are slightly lower Wednesday, having seen relatively little movement this week despite the wild ride for stocks.

Yamana Gold (YRI.TO) is losing 1.01 percent and Kinross Gold (K.TO) is weakening by 0.60 percent. Goldcorp (G.TO) is falling 0.86 percent.

Barrick Gold (ABX.TO) is down 0.53 percent. The company says it will incur a pre-tax charge of $429-million in its upcoming fourth-quarter due to its Pascua-Lama project.

The Capped Information Technology Index is losing 0.29 percent. BlackBerry (BB.TO) is declining 1.07 percent and Constellation Software (CSU.TO) is weakening by 1.87 percent. Descartes Systems Group (DSG.TO) is lower by 0.98 percent.

The Energy Index is falling 0.21 percent. Crude oil prices have reversed Wednesday morning after the release of the EIA report.

The American Petroleum Institute (API) reported a draw of 1.050 million barrels of United States crude oil inventories for the week ending January 30, according to the API data. Analysts had expected a build of 3 million barrels in crude oil inventories.

The Energy Information Administration announced this morning that U.S. crude inventories increased by 1.9 million barrels last week.

Canadian Natural Resources (CNQ.TO) is losing 1.48 percent and Husky Energy (HSE.TO) is weakening by 0.06 percent. Cenovus Energy (CVE.TO) is dropping 0.28 percent and Crescent Point Energy (CPG.TO) is falling 1.06 percent. Imperial Oil (IMO.TO) is declining 1.39 percent and Enbridge (ENB.TO) is lower by 0.41 percent.

Canaccord Genuity (CF.TO) reported strong third quarter results on gains from investments in marijuana and cryptocurrencies. The stock is falling 0.95 percent.

On the economic front, Canadian municipalities issued $8.1 billion in building permits in December, up 4.8% following a 7.3% decline in November. The December increase stemmed from higher construction intentions in the residential sector.

Germany's industrial production declined in December but the momentum was strong throughout the year 2017. Industrial output slid 0.6 percent month-on-month in December, in contrast to a revised 3.1 percent rise in November, data from Destatis showed Wednesday. Output was forecast to drop 0.5 percent.

French foreign trade gap narrowed notably in December, as exports grew much faster than imports, data from the customs office showed Wednesday. The trade deficit fell to EUR 3.5 billion in December from EUR 5.6 billion in November. Moreover, this was the lowest trade surplus of the year.

The French current account gap widened slightly in the three months ended December, data from the Bank of France showed Wednesday. The current account deficit rose to EUR 6.7 billion in the fourth quarter from EUR 6.2 billion in the third quarter.

UK house prices decreased for the second straight month in January, data from the Lloyds bank subsidiary Halifax and IHS Markit showed Wednesday. House prices fell unexpectedly by 0.6 percent in January from December, when they were down 0.8 percent. Prices were forecast to climb 0.2 percent.

In commodities, crude oil futures for March delivery are down 1.03or 1.62 percent at $62.36 a barrel.

Natural gas for March is down 0.051 or 1.85 percent at $2.708 per million btu.

Gold futures for April are down 3.10 or 0.23 percent at $1,326.40 an ounce.

Silver for March is down 0.155 or 0.93 percent at $16.425 an ounce.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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