Canadian Stocks Are Rising As Gold Provides Support -- Canadian Commentary

(RTTNews) - The Canadian stock market is up in early trade Monday, thanks in large part to the strength of the gold stocks. The safe haven appeal of the precious metal is driving gold stocks higher as several negative factors are having an impact on risk appetite at the start of the trading week.

Weaker than expected economic data from the United States this morning has added to the uncertainty surrounding the Federal Reserve's outlook for interest rates. Many traders have been expecting a hike in U.S. rates before the end of the year, but the weak data has cast some doubts on the probability.

Markets in Europe are trading modestly to the downside Monday. Investors are in a cautious mood ahead of the ECB's monetary policy decision due later this week. The earnings reporting season in the U.S. will ramp up this week and some key Chinese data is also approaching.

Markets in the United States are struggling to find direction. The markets dipped at the start, but have since climbed back near the flat line. Continued uncertainty surrounding the outlook for interest rates is weighing on investor sentiment, as well as a pair of weaker than expected economic reports.

The benchmark S&P/TSX Composite Index is up points or 36.45 percent at 14,621.44.

On Friday, the index closed down 58.72 points or 0.40 percent, at 14,584.99. The index scaled an intraday high of 14,726.47 and a low of 14,584.99.

The Gold Index is rising 1.14 percent. Gold prices are flat Monday morning amid downbeat U.S. economic news that might convince the Federal Reserve to delay raising interest rates.

Goldcorp (G.TO) is rising 0.85 percent and Barrick Gold (ABX.TO) is advancing 0.83 percent. Kinross Gold (K.TO) is climbing 0.63 percent and Eldorado Gold (ELD.TO) is adding 0.22 percent. Yamana Gold (YRI.TO) is gaining 1.25 percent and B2Gold (BTO.TO) is increasing 2.15 percent.

The Capped Materials Index is also up 0.76 percent. Agnico Eagle Mines (AEM.TO) is rising 1.07 percent and Franco-Nevada (FNV.TO) is gaining 0.97 percent. Silver Wheaton (SLW.TO) is advancing 0.67 percent.

The Capped Information Technology Index is rising 0.58 percent. BlackBerry (BB.TO) is gaining 0.41 percent and Constellation Software (CSU.TO) is up 1.76 percent.

The Capped Telecommunication Services Index is climbing 0.51 percent. BCE (BCE.TO) is rising 0.15 percent and Manitoba Telecom Services (MBT.TO) is adding 0.54 percent.

Rogers Communication (RCI-B.TO) is increasing 1.75 percent. The company revealed earnings for third quarter that declined 13% from last year. Guy Laurence has stepped down as president and CEO, effective immediately.

The heavyweight Financial Index is increasing 0.29 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.10 percent and Canadian Imperial Bank of Commerce (CM.TO) is gaining 0.18 percent. Toronto-Dominion Bank (TD.TO) is climbing 0.36 percent and National Bank of Canada (NA.TO) is rising 0.13 percent and Royal Bank of Canada (RY.TO) is up 0.53 percent.

Bank of Montreal (BMO.TO) is higher by 0.44 percent. The company announced that it is offering a two cent discount on its common shares issued under its dividend reinvestment plan.

The Energy Index is up 0.07 percent. Crude oil prices have slipped below $50 a barrel Monday morning.

Suncor Energy (SU.TO) is increasing 0.51 percent and Canadian Natural Resources (CNQ.TO) is rising 0.09 percent. Enbridge (ENB.TO) is also gaining 0.35 percent.

The Capped Healthcare Index is lower by 0.34 percent. Concordia Healthcare (CXR.TO) is falling 2.49 percent and Valeant Pharmaceuticals International (VRX.TO) is decreasing 1.75 percent.

Extendicare (EXE.TO) is up 0.11 percent after it announced an October dividend of C$0.04 per share.

The Capped Industrials Index is losing 0.05 percent. Canadian National Railway (CNR.TO) is lower by 0.30 percent and Canadian Pacific Railway (CP.TO) is falling 0.15 percent. Finning International (FTT.TO) is down 0.28 percent and Bombardier (BBD-B.TO) is weakening by 1.14 percent.

Supervalu Inc. (SVU) has entered into a definitive agreement to sell Save-A-Lot business to an affiliate of Onex Corp. (OCX.TO) for $1.365 billion in cash. Onex is climbing 0.45 percent.

Constellation Brands Inc. (STZ) said that it agreed to sell its Canadian wine business to Ontario Teachers' Pension Plan, the largest single-profession pension plan in Canada, for about C$1.03 billion.

On the economic front, Eurozone inflation accelerated as estimated in September to the highest level since late 2014, final data from Eurostat showed Monday. Inflation rose to 0.4 percent from 0.2 percent in August. A similar high rate was last seen October 2014.

The average asking price for a house in the United Kingdom was up 0.9 percent on month in October, property tracking website Rightmove said on Monday - coming in at 309,122 pounds. That follows the 0.7 percent increase in September.

Business activity in the New York manufacturing sector has unexpectedly seen a continued decline in the month of October, according to a report released by the Federal Reserve Bank of New York on Monday. The New York Fed said its general business conditions index slid to a negative 6.8 in October from a negative 2.0 in September, with a negative reading indicating a contraction in activity.

The drop by the general business conditions index came as a surprise to economists, who had expected the index to rise to a positive 1.0.

Industrial production in the U.S. inched up by slightly less than expected in the month of September, the Federal Reserve revealed in a report released on Monday. The Fed said industrial production edged up by 0.1 percent in September after falling by a revised 0.5 percent in August.

Economists had expected production to rise by 0.2 percent compared to the 0.4 percent drop originally reported for the previous month.

In commodities, crude oil futures for November delivery are down 0.68 or 1.35 percent at $49.67 a barrel.

Natural gas for November is down 0.049 or 1.49 percent at $3.236 per million btu.

Gold futures for December are up $0.10 or 0.01 percent at $1,255.60 an ounce.

Silver for December is down $0.031 or 0.18 percent at $17.41 an ounce.