Canadian Stocks Are Rising On Commodity Strength -- Canadian Commentary

(RTTNews) - The Canadian stock market is climbing in early trade Thursday on optimism that the U.K. will elect to stay in the European Union. The market finished the past two sessions nearly unchanged as investors adopted a cautious stance ahead of the referendum vote. However, recent poll results have investors feeling more confident to take on risk.

Mining and energy stocks are leading the way higher in early trade. Crude oil prices have climbed back within striking distance of $50 a barrel.

Markets in Europe are holding onto modest gains Thursday, but are well off their early highs. Investors are eagerly anticipating the results of today's U.K. referendum on whether to remain a part of the European Union. The final results will be out on Friday. Investors are optimistic, after two new polls suggested that the "Remain" campaign has taken the lead.

Markets in the United States are rising in early trade Thursday. Traders are optimistic that British voters will oppose the so-called Brexit. Investors also cheered the bigger than expected decrease in initial jobless claims. Jobless claims hit their lowest level since the week ended April 23rd.

The benchmark S&P/TSX Composite Index is up 110.14 points or 0.79 percent at 14,113.95.

On Wednesday, the index closed down 8.51 points or 0.06 percent, at 14,003.81. The index scaled an intraday high of 14,066.56 and a low of 13,981.77.

The Diversified Metal and Mining Index is advancing 2.57 percent. HudBay Minerals (HBM.TO) is increasing 1.55 percent and Teck Resources (TCK-B.TO) is climbing by 2.09 percent. Lundin Mining (LUN.TO) is gaining 1.15 percent and First Quantum Minerals (FM.TO) is rising 3.75 percent. Capstone Mining (CS.TO) is up 2.90 percent.

The Energy Index is up 1.27 percent. Crude oil prices have perked up this morning and are again approaching the $50 a barrel level.

Cenovus Energy (CVE.TO) is gaining 1.54 percent and Crescent Point Energy (CPG.TO) is increasing 1.23 percent. Canadian Natural Resources (CNQ.TO) is advancing 0.95 percent and Husky Energy (HSE.TO) is higher by 2.25 percent. Imperial Oil (IMO.TO) is up 0.95 percent and Enbridge (ENB.TO) climbing 0.63 percent. Suncor Energy (SU.TO) is also adding 1.32 percent.

The heavyweight Financial Index is increasing 0.81 percent. Canadian Imperial Bank of Commerce (CM.TO) is rising 0.55 percent and National Bank of Canada (NA.TO) is climbing by 0.27 percent. Toronto Dominion Bank (TD.TO) is gaining 0.85 percent and Royal Bank of Canada (RY.TO) is adding 0.93 percent. Bank of Montreal (BMO.TO) is up 0.75 percent and Bank of Nova Scotia (BNS.TO) is advancing 0.69 percent.

The Capped Industrials Index is rising 0.70 percent. AutoCanada (ACQ.TO) is up 1.98 percent and Air Canada (AC.TO) is climbing 0.21 percent. Canadian National Railway (CNR.TO) is gaining 0.45 percent and Canadian Pacific Railway (CP.TO) is increasing 1.19 percent. Finning International (FTT.TO) is higher by 0.53 percent.

Bombardier Inc. (BBD_B.TO) announced the signing of a definitive agreement with the Government of Quebec for a $1 billion US investment in the C Series Aircraft Limited Partnership or CSALP. The stock is now up 1.54 percent.

The Capped Materials Index is up 0.57 percent. Agrium (AGU.TO) is climbing 1.80 percent and Potash Corp. of Saskatchewan (POT.TO) is surging 6.23 percent.

The Capped Information Technology Index is rising 0.52 percent. Constellation Software (CSU.TO) is higher by 0.12 percent and Sierra Wireless (SW.TO) is adding 0.14 percent. Avigilon (AVO.TO) is climbing 0.85 percent.

BlackBerry (BB.TO) announced, for the full fiscal year, the company is on track to deliver 30 percent revenue growth in software and services. Shares are rising 1.74 percent.

The Capped Healthcare Index is gaining 0.22 percent. Concordia Healthcare (CXR.TO) is up 0.93 percent and Valeant Pharmaceuticals International (VRX.TO) is gaining 0.47 percent. Extendicare (EXE.TO) is also adding 1.24 percent.

The Capped Telecommunication Services Index is up 0.22 percent. Manitoba Telecom Services (MBT.TO) is rising 0.29 percent and BCE (BCE.TO) is increasing 0.33 percent. TELUS (T.TO) is gaining 0.24 percent and Rogers Communication (RCI-B.TO) is higher by 0.08 percent.

The Gold Index is lower by 0.84 percent. Gold prices are down slightly this morning as investors await the results of the U.K. referendum.

Barrick Gold (ABX.TO) is falling 0.91 percent and B2Gold (BTO.TO) is losing 1.75 percent. Goldcorp (G.TO) is weakening by 1.51 percent and Kinross Gold (K.TO) is down 2.05 percent. IAMGOLD (IMG.TO) is decreasing 0.20 percent and Eldorado Gold (ELD.TO) is declining 1.99 percent Yamana Gold (YRI.TO) is also surrendering 1.74 percent.

On the economic front, Eurozone private sector activity expanded at the weakest pace in 17 months in June, flash survey results from Markit showed Thursday. The flash composite output index dropped to 52.8 in June from 53.1 in May. This was the lowest reading since January of last year.

Germany's private sector expanded at a slower pace in June, flash survey results from Markit showed Thursday. The composite output index fell to 54.1 in June from 54.5 in May.

The French private sector activity contracted in June, flash survey results from Markit showed Thursday. The flash composite Purchasing Managers' Index fell to a 4-month low of 49.4 from 50.9 in May.

French manufacturing confidence weakened more-than-expected in June, marking its second successive monthly decrease, figures from the statistical office Insee showed Thursday. The manufacturing confidence index fell to 102.0 in June from 104.0 in the previous month. Economists had expected the index to drop to 103.0.

After reporting a rebound in first-time claims for U.S. unemployment benefits in the previous week, the Labor Department released a report on Thursday showing that initial jobless claims pulled back by much more than expected in the week ended June 18th.

The report said initial jobless claims fell to 259,000, a decrease of 18,000 from the previous week's unrevised level of 277,000. Economists had expected jobless claims to edge down to 270,000.

In commodities, crude oil futures for July delivery are up 0.68 or 1.38 percent at $49.81 a barrel.

Natural gas for July is up 0.003 or 0.11 percent at $2.68 per million btu.

Gold futures for August are down $5.50 or 0.43 percent at $1,264.50 an ounce.

Silver for July is up $0.023 or 0.13 percent at $17.335 an ounce.