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Canadian Stocks Are Rebounding From Recent Losses - Canadian Commentary

The Canadian stock market is climbing in early trade Wednesday, as it attempts to bounce back from weakness at the start of the trading week. The majority of the Canadian sectors are trading in the green this morning, with healthcare and information technology stocks leading the way higher.

Markets in Europe are trading modestly to the upside Wednesday, following the losses of the previous two sessions. Traders are looking forward to Thursday's announcement from the Bank of England.

Markets on Wall Street are up slightly in early trade Wednesday, following yesterday's sharp pullback. Bargain hunting appears to be playing a role in the early gains, but investors remain in a cautious mood due to the escalating trade dispute between the U.S. and China.

The benchmark S&P/TSX Composite Index is up 98.31 points or 0.60 percent at 16,414.84.

On Tuesday, the index closed down by 67.10 points or 0.41 percent, at 16,316.53. The index scaled an intraday high of 16,351.94 and a low of 16,264.56.

The Capped Healthcare Index is higher by 1.92 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 0.40 percent.

The Capped Information Technology Index is gaining 1.15 percent. Constellation Software (CSU.TO) is rising 1.57 percent and BlackBerry (BB.TO) is advancing 1.20 percent. Descartes Systems Group (DSG.TO) is adding 0.31 percent.

The Energy Index is rising 0.80 percent. Crude oil prices are rising Wednesday morning, approaching $66 per barrel.

Crescent Point Energy (CPG.TO) is climbing 0.64 percent and Cenovus Energy (CVE.TO) is rising 2.16 percent. Encana (ECA.TO) is advancing 0.55 percent and Suncor Energy (SU.TO) is increasing 0.84 percent. Husky Energy (HSE.TO) is up 0.86 percent and Imperial Oil (IMO.TO) is higher by 0.93 percent. Canadian Natural Resources (CNQ.TO) is gaining 0.72 percent and Enbridge (ENB.TO) is adding 1.09 percent.

The heavyweight Financial Index is increasing 0.69 percent. Toronto-Dominion Bank (TD.TO) is advancing 1.11 percent and Bank of Montreal (BMO.TO) is up 0.84 percent. Royal Bank of Canada (RY.TO) is climbing 0.49 percent and Bank of Nova Scotia (BNS.TO) is higher by 0.62 percent. National Bank of Canada (NA.TO) is rising 0.25 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.67 percent.

The Capped Telecommunication Services Index is up 0.39 percent. BCE (BCE.TO) is gaining 0.43 percent and TELUS (T.TO) is rising 0.22 percent. Rogers Communications (RCI-B.TO) is adding 0.57 percent.

The Gold Index is increasing 0.30 percent. Gold prices are dipping Wednesday morning, sliding back near $1275 an ounce.

B2Gold (BTO.TO) is increasing 1.18 percent and Kinross Gold (K.TO) is rising 0.81 percent. Goldcorp (G.TO) is up 0.14 percent and IAMGOLD (IMG.TO) is adding 0.52 percent.

Bombardier Inc. (BBD-B.TO) is rising 1.78 percent after it said Delta inked a firm Purchase Agreement For 20 CRJ900 Aircraft. On Monday, Goldman Sachs analyst upgraded the stock to a "buy" on signs of a turnaround.

On the economic front, Germany's producer prices increased at the fastest pace in seven months in May, figures from Destatis showed Wednesday. Producer prices climbed 2.7 percent year-on-year in May, faster than the 2 percent increase in April. A similar faster growth was last seen in October. Prices were forecast to climb 2.5 percent.

Existing home sales in the U.S. unexpectedly decreased in the month of May, according to a report released by the National Association of Realtors on Wednesday. NAR said existing home sales fell by 0.4 percent to an annual rate of 5.43 million in May after plunging by 2.7 percent to a downwardly revised 5.45 million in April.

The drop surprised economists, who had expected existing home sales to climb to an annual rate of 5.52 million from the 5.46 million originally reported for the previous month.

In commodities, crude oil futures for July delivery are up 0.81 or 1.25 percent at $65.71 a barrel.

Natural gas for July is up 0.056 or 1.93 percent at $2.956 per million btu.

Gold futures for August are down 2.79 or 0.22 percent at $1,275.80 an ounce.

Silver for July is down 0.013 or 0.08 percent at $16.31 an ounce.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

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