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Canadian Stocks Are Climbing On Energy Strength - Canadian Commentary

The Canadian stock market is rising in early trade Monday. Energy stocks are leading the way higher this morning, as crude oil prices climb. However, investors remain in a cautious mood ahead of some big U.S. events this week.

Markets on Wall Street are struggling at the start of the new trading week. Traders appear reluctant to make significant moves ahead of the highly anticipated midterm elections, as well as this week's policy statement from the Federal Reserve. While the Fed is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

Markets in Europe are turning in a mixed performance Monday, but remain little changed overall.

The benchmark S&P/TSX Composite Index is up 71.10 points or 0.47 percent at 15,190.38.

On Friday, the index closed down by 30.87 points or 0.20 percent, at 15,119.28. The index scaled an intraday high of 15,222.91 and a low of 15,037.18.

The Energy Index is rising 2.00 percent. Cenovus Energy (CVE.TO) is advancing 2.09 percent and Suncor Energy (SU.TO) is increasing 1.20 percent. Imperial Oil (IMO.TO) is climbing 0.50 percent and Enbridge Inc. (ENB.TO) is adding 1.24 percent. Crescent Point Energy (CPG.TO) is gaining 2.72 percent and Canadian Natural Resources (CNQ.TO) is up 2.67 percent.

Husky Energy (HSE.TO) is higher by 1.45 percent after it reaffirmed its commitment to the full and fair Offer to buy MEG Energy as outlined on October 2, 2018, and comments on MEG's recent statements and third quarter results.

The Gold Index is increasing 0.51 percent. Kinross Gold (K.TO) is gaining 1.10 percent and IAMGOLD (IMG.TO) is rising 1.66 percent. Yamana Gold (YRI.TO) is climbing 0.64 percent and B2Gold (BTO.TO) is adding 0.15 percent. Barrick Gold (ABX.TO) is advancing 0.58 percent.

The heavyweight Financial Index is increasing 0.43 percent. Bank of Nova Scotia (BNS.TO) is gaining 0.34 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.53 percent. National Bank of Canada (NA.TO) is higher by 0.53 percent and Royal Bank of Canada (RY.TO) is climbing 0.18 percent. Toronto-Dominion Bank (TD.TO) is rising 0.51 percent and Bank of Montreal (BMO.TO) is advancing 0.17 percent.

The Capped Telecommunication Services Index is up 0.23 percent. BCE (BCE.TO) is higher by 0.28 percent and Rogers Communications (RCI-B.TO) is gaining 0.26 percent.

The Capped Information Technology Index is losing 1.32 percent. BlackBerry (BB.TO) is falling 1.30 percent and Constellation Software (CSU.TO) is down 0.77 percent. Descartes Systems Group (DSG.TO) is lower by 1.20 percent.

The Capped Materials Index is down 0.40 percent. Franco-Nevada (FNV.TO) is declining 1.25 percent and Agnico Eagle Mines (AEM.TO) is falling 1.43 percent. Nutrien (NTR.TO) is losing 0.98 percent.

Crew Energy Inc. (CR.TO) is rising 4.72 percent after it reported a net loss of $0.94 million for the third quarter ended September 2018, as against net profit of $2.12 million in the year-ago quarter.

Pattern Energy Group Inc. (PEGI.TO) is climbing 3.37 percent after it reported a net loss of $31.5 million for the third quarter of 2018, compared to a net loss of $48.4 million for the same period last year.

Ensign Energy Services Inc. (ESI.TO) is gaining 7.86 percent after it reported third quarter revenue of $288.7 million for the third quarter, an increase of 17% from revenue for the third quarter of 2017 of $247.1 million.

On the economic front, China's private sector expanded at the weakest pace in more than two years in October with both services and manufacturing noting weaker performances, survey results from IHS Markit showed Monday. The Caixin composite output index fell to a 28-month low of 50.5 in October from 52.1 in September.

Eurozone's investor sentiment eroded for a third consecutive month in November to its lowest level in two years, survey data from Sentix showed on Monday. The Sentix investor confidence indicator dropped to 8.8 from 11.4 in October. The latest reading, which matched economists' expectations, was the lowest since October 2016.

The UK service sector registered its slowest rate of expansion in seven months in October, survey results from IHS Markit and the Chartered Institute of Procurement & Supply showed Monday. The services Purchasing Managers' Index dropped more-than-expected to 52.2 in October from 53.9 in September. The expected level was 53.4.

Reflecting a slight cooling off after a record month in September, the Institute for Supply Management released a report on Monday showing a modest slowdown in the pace of growth in U.S. service sector activity in the month of October.

The ISM said its non-manufacturing index dipped to 60.3 in October after climbing to 61.6 in September, although a reading above 50 still indicates growth in the service sector. Economists had expected the index to drop to 59.3.

In commodities, crude oil futures for December delivery are up 0.30 or 0.48 percent at $63.44 a barrel.

Natural gas for December is up 0.231 or 7.03 percent at $3.515 per million btu.

Gold futures for December are up 0.39 or 0.03 percent at $1,233.70 an ounce.

Silver for December is down 0.081 or 0.55 percent at $14.675 an ounce.

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