Canadian Stocks Are Attempting To Rebound -- Canadian Commentary

(RTTNews) - The Canadian stock market is up in early trade Tuesday, as the market attempts to bounce back from its recent losing streak. Eight consecutive sessions of declines brought the market to its lowest level in 3 years yesterday. Crude oil prices are attempting to stabilize after falling to around $30 a barrel.

Markets in Europe are trading solidly to the upside Tuesday, despite the weak performance of most Asian markets. Sentiment improved after China's offshore yuan firmed above the onshore rate for the first time since October, spurred by what traders called aggressive intervention by Beijing.

Ma Jun, the People's Bank of China's chief economist, said that China's central bank plans to keep the yuan basically stable against a basket of currencies, and fluctuations of the yuan against the dollar will increase.

Markets in the United States are also gaining ground in early trade, after seeing substantial weakness over the past several sessions. Aluminum giant Alcoa reported better than expected results after the close of trading Monday, kicking off the earnings season. However, trading activity may be somewhat subdued on another quiet day on the U.S. economic front.

The benchmark S&P/TSX Composite Index is up 64.91 points or 0.53 percent at 12,384.16.

On Monday, the index closed down 126.20 points or 1.01 percent, at 12,319.25. The index scaled an intraday high of 12,479.36 and a low of 12,230.01.

The Capped Information Technology Index is rising 2.23 percent. Constellation Software (CSU.TO) is higher by 2.27 percent and Sierra Wireless (SW.TO) is gaining 2.44 percent. BlackBerry (BB.TO) is up 3.28 percent and Avigilon (AVO.TO) is adding 1.58 percent.

The Capped Health Care Index is higher by 2.18 percent. Valeant Pharmaceuticals International (VRX.TO) is climbing 1.72 percent and Concordia Healthcare (CXR.TO) is gaining 3.93 percent. Extendicare (EXE.TO) is also rising 0.12 percent.

The heavyweight Financial Index is climbing 0.99 percent. National Bank of Canada (NA.TO) is rising 0.96 percent and Bank of Montreal (BMO.TO) is higher by 1.01 percent. Canadian Imperial Bank of Commerce (CM.TO) is gaining 0.98 percent and Bank of Nova Scotia (BNS.TO) is adding 0.44 percent. Royal Bank of Canada (RY.TO) is increasing 1.29 percent and Toronto-Dominion Bank (TD.TO) is advancing 1.89 percent.

The Capped Telecommunication Services Index is gaining 0.90 percent. BCE (BCE.TO) is increasing 1.21 percent and Manitoba Telecom Services (MBT.TO) is rising 0.64 percent. TELUS (T.TO) is gaining 0.48 percent.

The Capped Industrials Index is advancing 0.87 percent. Canadian Pacific Railway (CP.TO) is increasing 0.89 percent and Canadian National Railway (CNR.TO) is adding 1.22 percent. Bombardier (BBD-A.TO) is higher by 0.71 percent and Finning International (FTT.TO) is climbing 0.80 percent. CAE (CAE.TO) is also gaining 0.79 percent.

The Diversified Metal and Mining Index is falling 3.51 percent. First Quantum Minerals (FM.TO) is falling 5.47 percent and Lundin Mining (LUN.TO) is lower by 2.52 percent. Teck Resources (TCK-B.TO) is weakening by 2.39 percent and HudBay Mineral (HBM.TO) is losing 6.60 percent.

The Gold Index is weakening by 3.25 percent. Gold prices continued to fall Tuesday morning as the dollar strengthened versus the euro.

Barrick Gold (ABX.TO) is declining 4.48 percent and Eldorado Gold (ELD.TO) is sinking 15.37 percent. Goldcorp (G.TO) is decreasing 4.82 percent and Royal Gold (RGL.TO) is dropping 6.50 percent. Kinross Gold (K.TO) is surrendering 2.88 percent and Yamana Gold (YRI.TO) is lower by 2.27 percent. IAMGOLD (IMG.TO) is down 1.37 percent.

The Capped Materials Index is also down 2.51 percent. Agnico Eagle Mines (AEM.TO) is losing 1.87 percent and Franco-Nevada (FNV.TO) is weakening by 1.84 percent. Silver Wheaton (SLW.TO) is sinking by 6.51 percent and Potash Corp. of Saskatchewan (POT.TO) is declining 0.96 percent.

The Energy Index is decreasing 0.56 percent. Crude oil prices fell to around $30 a barrel despite early Tuesday, but has begun to stabilize on reports that some OPEC nations want a special meeting to curb production.

Canadian Natural Resources (CNQ.TO) is dropping 1.94 percent and Pacific Exploration & Production (PRE.TO) is lower by 0.76 percent. Husky Energy (HSE.TO) is declining 1.69 percent and Enbridge (ENB.TO) is dipping 0.34 percent. Tourmaline Oil (TOU.TO) is surrendering 2.09 percent and Crescent Point Energy (CPG.TO) is weaker by 1.14 percent.

Richmont Mines (RIC.TO) is gaining 1.46 percent. The company announced that it produced 22,380 ounces of gold in the fourth quarter.

Transat AT (TRZ.TO) is falling 2.16 percent. The Globe and Mail reported that it is looking to sell some of its European operations but expects to maintain transatlantic flights.

On the economic front, U.K. industrial production declined at the fastest pace in almost three years in November as warm weather reduced energy demand.

Industrial output slid unexpectedly by 0.7 percent month-on-month after staying flat in October, figures from the Office for National Statistics showed Tuesday. Production was forecast to grow 0.1 percent in November.

Like-for-like sales in the United Kingdom were up just 0.1 percent on year in December, the British Retail Consortium said on Tuesday. That was well shy of forecasts for an increase of 0.5 percent following the 0.4 percent contraction in November.

In commodities, crude oil futures for February delivery are up $0.02 or 0.06 percent at $31.43 a barrel.

Natural gas for February is down 0.09 or 3.76 percent at $2.306 per million btu.

Gold futures for February are down $10.60 or 0.97 percent at $1,085.60 an ounce.

Silver for March is down $0.096 or 0.69 percent at $13.77 an ounce.