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Canadian Stocks Are Up Slightly As Commodity Prices Rise - Canadian Commentary

The Canadian stock market is up slightly in early trade Tuesday, adding to yesterday's strong gains. Concerns over the possibility of a trade war between the U.S. and Canada have begun to ease. President Donald Trump has criticized Canada and Mexico, and suggested that the neighboring countries could avoid forthcoming tariffs if they agree to a renegotiated NAFTA.

Commodity prices are rising Tuesday morning, which has provided a boost to shares of gold and energy stocks. Traders are looking forward to the release of U.S. crude inventory day later today and tomorrow.

The European markets are clinging to small gains Tuesday. After a positive start to the day, the markets have since pared their gains. British Prime Minister Theresa May revealed that she is confident that a good Brexit deal will be reached.

Markets on Wall Street are little changed in early trade Tuesday. Early gains began to erode following the release of the weaker than expected factory orders data.

The benchmark S&P/TSX Composite Index is up 21.20 points or 0.14 percent at 15,562.48.

On Monday, the index closed up 156.69 points or 1.02 percent, at 15,541.28. The index scaled an intraday high of 15,559.18 and a low of 15,334.74.

The Gold Index is increasing 1.30 percent. Gold prices are rising Tuesday morning, as the dollar weakens against its major rivals.

Goldcorp Inc. (G.TO) is climbing 2.48 percent and Barrick Gold (ABX.TO) is gaining 1.06 percent. IAMGOLD (IMG.TO) is higher by 1.30 percent and Yamana Gold (YRI.TO) is up 1.58 percent. Kinross Gold (K.TO) is increasing 0.85 percent and B2Gold (BTO.TO) is adding 2.11 percent. Eldorado Gold (ELD.TO) is advancing 0.67 percent.

The Capped Materials Index is up 1.09 percent. Agnico Eagle Mines (AEM.TO) is increasing 1.61 percent and Franco-Nevada (FNV.TO) is gaining 1.26 percent.

The Energy Index is rising 0.42 percent. Crude oil prices are little changed Tuesday morning ahead of U.S. oil inventories data.

Suncor Energy (SU.TO) is higher by 0.39 percent and Cenovus Energy (CVE.TO) is climbing 2.73 percent. Crescent Point Energy (CPG.TO) is rising 1.44 percent and Husky Energy (HSE.TO) is advancing 0.23 percent. Imperial Oil (IMO.TO) is increasing 0.48 percent.

The heavyweight Financial Index is increasing 0.24 percent. Canadian Imperial Bank of Commerce (CM.TO) is gaining 0.27 percent and Royal Bank of Canada (RY.TO) is up 0.19 percent. Bank of Montreal (BMO.TO) is advancing 0.24 percent and Bank of Nova Scotia (BNS.TO) is climbing 0.53 percent. Toronto-Dominion Bank (TD.TO) is rising 0.57 percent and National Bank of Canada (NA.TO) is adding 0.44 percent.

The Capped Telecommunication Services Index is up 0.22 percent. BCE (BCE.TO) is climbing 0.14 percent and TELUS (T.TO) is rising 0.11 percent. Rogers Communications (RCi-B.TO) is higher by 0.48 percent.

The Capped Industrials Index is down 1.01 percent. Air Canada (AC.TO) is decreasing 0.48 percent and WestJet Airlines (WJA.TO) is lower by 0.60 percent. Canadian National Railway (CNR.TO) is falling 2.06 percent and Canadian Pacific Railway (CP.TO) is declining 0.72 percent.

Bombardier (BBD-B.TO) is sinking 7 percent after it announced that it will issue about $500 million of equity. It intends to use the net proceeds of the Offering to supplement its working capital and for general corporate purposes, consistent with Bombardier's continued proactive approach to capital management.

The Capped Information Technology Index is losing 0.13 percent. Descartes Systems Group (DSG.TO) is lower by 1.42 percent and Constellation Software (CSU.TO) is declining 0.94 percent. BlackBerry (BB.TO) is decreasing 0.12 percent and Sierra Wireless (SW.TO) is weakening by 1.69 percent.

Marijuana major Canopy Growth (WEED.TO) is reportedly planning a takeover bid for Spain's Alcaliber. Shares are climbing 4.73 percent.

On the economic front, Germany's construction sector grew at the weakest pace in 13 months in February, data from IHS Markit showed Tuesday. The headline construction Purchasing Managers' Index fell to 52.7 in February from an 82-month high of 59.8 in January. A score above 50 indicates expansion in the sector.

Like-for-like sales in the United Kingdom climbed 0.6 percent on year in February, the British Retail Consortium said on Tuesday. That exceeded expectations for an increase of 0.5 percent and was unchanged from the January reading.

New orders for U.S. manufactured goods slumped by slightly more than expected in the month of January, according to a report released by the Commerce Department on Tuesday. The Commerce Department said factory orders tumbled by 1.4 percent in January after jumping by an upwardly revised 1.8 percent in December.

Economists had expected factory orders to drop by 1.3 percent compared to the 1.7 percent spike originally reported for the previous month.

In commodities, crude oil futures for April delivery are down 0.05 or 0.08 percent at $62.52 a barrel.

Natural gas for April is up 0.042 or 1.55 percent at $2.746 per million btu.

Gold futures for April are up 15.10 or 1.14 percent at $1,335.00 an ounce.

Silver for May is up 0.353 or 2.15 percent at $16.765 an ounce.

by RTT Staff Writer

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