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Canadian Stocks Are Adding To Recent Gains - Canadian Commentary

The Canadian stock market is rising in early trade Tuesday, adding to the gains from the previous session. Early gains on Wall Street are helping to fuel the rise on Bay Street. However, the mood among investors remains cautious ahead of some major U.S. events this week.

Markets on Wall Street are up slightly in early trade Tuesday. Traders are in a cautious mood as they await the results of today's midterm elections. The results will decide control of both the House and Senate and could have a major impact on President Donald Trump's ability to enact his pro-business agenda.

The Federal Reserve will also release its policy decision on Thursday. The central bank 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 trading slightly to the downside Tuesday.

The benchmark S&P/TSX Composite Index is up 40.78 points or 0.27 percent at 15,258.48.

On Monday, the index closed up by 98.42 points or 0.65 percent, at 15,217.70. The index scaled an intraday high of 15,242.40 and a low of 15,136.81.

The Energy Index is rising 0.72 percent. Suncor Energy (SU.TO) is increasing 0.54 percent and Enbridge Inc. (ENB.TO) is adding 1.96 percent. Crescent Point Energy (CPG.TO) is gaining 0.33 percent and Canadian Natural Resources (CNQ.TO) is up 1.39 percent. Husky Energy (HSE.TO) is higher by 1.58 percent and Encana (ECA.TO) is advancing 0.43 percent.

The Capped Materials Index is up 0.44 percent. Franco-Nevada (FNV.TO) is advancing 2.25 percent and Nutrien (NTR.TO) is gaining 3.51 percent.

The Capped Information Technology Index is gaining 0.52 percent. BlackBerry (BB.TO) is rising 0.70 percent and Constellation Software (CSU.TO) is up 1.11 percent. Descartes Systems Group (DSG.TO) is higher by 0.79 percent and Sierra Wireless (SW.TO) is adding 0.62 percent.

The Capped Industrials Index is up 0.33 percent. Canadian Pacific Railway (CP.TO) is rising 0.35 percent and Canadian National Railway (CNR.TO) is higher by 1.15 percent.

The heavyweight Financial Index is decreasing 0.55 percent. Bank of Nova Scotia (BNS.TO) is losing 0.61 percent and Canadian Imperial Bank of Commerce (CM.TO) is down 0.30 percent. National Bank of Canada (NA.TO) is lower by 1.01 percent and Royal Bank of Canada (RY.TO) is weakening by 0.53 percent. Toronto-Dominion Bank (TD.TO) is rising 0.51 percent and Bank of Montreal (BMO.TO) is declining 0.69 percent.

The Capped Telecommunication Services Index is down 0.46 percent. BCE (BCE.TO) is lower by 0.71 percent and Rogers Communications (RCI-B.TO) is losing 0.39 percent. TELUS (T.TO) is falling 0.54 percent.

The Gold Index is decreasing 0.27 percent. Kinross Gold (K.TO) is losing 0.84 percent and IAMGOLD (IMG.TO) is falling 0.82 percent. Barrick Gold (ABX.TO) is declining 0.64 percent and Goldcorp (G.TO) is weakening 0.72 percent. Eldorado Gold (ELD.TO) is surrendering 1.03 percent.

Bausch Health Companies Inc. (BHC.TO) is climbing 4.13 percent reported net loss of $350 million for the quarter ended September 2018.

Thomson Reuters (TRI.TO) is up 0.80 percent after it reported adjusted EPS of $0.11 for the third quarter of this year, as compared to $0.27 in the year ago quarter.

Wajax Corporation (WJX.TO) is gaining 1.52 percent after it reported third quarter revenue of $69.5 million, up 23.3% over year-ago quarter.

On the economic front, a report from Statistics Canada this morning showed that Canadian building permits rose 0.4 percent in September. The increase was in line with the expectations of economists.

Eurozone's private sector expanded at the weakest pace in over two years in October as both manufacturing and services recorded slower rates of growth, latest survey data from IHS Markit showed on Tuesday.

The composite Purchasing Managers' Index, or PMI, fell to 53.1 from September's 54.1. The reading was the lowest since September 2016. The flash reading for the composite PMI was 52.7.

Eurozone's producer price inflation accelerated for a fifth straight month in September, preliminary data from Eurostat showed on Tuesday. Producer prices grew 4.5 percent year-on-year following a 4.3 percent increase in August, which was revised from 4.2 percent. Economists had forecast a 4.3 percent rise.

Germany's services sector expanded more-than-expected at in October, albeit at a slowest pace in three months, survey data from IHS Markit showed on Tuesday. The services Purchasing Managers Index, or PMI, fell to 54.7 in October from September's eight-month high of 55.9. The latest reading was the lowest since July, but was above the flash estimate of 53.6.

Germany's factory orders unexpectedly grew for a second straight month in September, led by domestic demand, suggesting improvement in the economic momentum ahead.

Manufacturing new orders rose a price, calendar and seasonally adjusted 0.3 percent month-on-month in September, following a 2.5 percent growth in August, which was revised from 2 percent, preliminary data from the Federal Statistical Office showed on Tuesday. Economists had forecast a 0.5 percent decline.

In commodities, crude oil futures for December delivery are down 0.07 or 0.11 percent at $63.03 a barrel.

Natural gas for December is down 0.003 or 0.08 percent at $3.564 per million btu.

Gold futures for December are down 0.10 or 0.01 percent at $1,232.20 an ounce.

Silver for December is down 0.067 or 0.46 percent at $14.58 an ounce.

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