Canadian Stocks Continue To Recover Ground -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising sharply again Wednesday morning, after rebounding from Brexit fallout during the previous session. Nearly every Canadian sector is trading in the green this morning. Mining stocks are leading the way higher as metal prices continue to rise. The continued recovery in crude oil prices is providing a boost to energy stocks and a dip in the dollar is pushing gold prices higher.

Markets in Europe are up solidly again Wednesday, continuing the recovery from the sharp sell-off at the end of the previous week and the start of this week, after the U.K. elected to exit the European Union. European leaders are meeting in Brussels to discuss the way forward after the unexpected vote.

Markets in the United States are also rising in early trade, following the rebound seen in the previous session. Strength in overseas markets is providing a boost to investor sentiment.

The benchmark S&P/TSX Composite Index is up 169.77 points or 1.23 percent at 14,012.46.

On Tuesday, the index closed up 152.90 points or 1.12 percent, at 13,842.69. The index scaled an intraday high of 13,869.20 and a low of 13,745.59.

The Diversified Metal and Mining Index is advancing 3.21 percent. HudBay Minerals (HBM.TO) is increasing 4.81 percent and Teck Resources (TCK-B.TO) is climbing 4.16 percent. Lundin Mining (LUN.TO) is gaining 3.58 percent and First Quantum Minerals (FM.TO) is rising 3.26 percent. Capstone Mining (CS.TO) is jumping 5.33 percent.

The Energy Index is up 1.98 percent. Crude oil prices are rising for a second day Wednesday, after industry data showed a big drop in U.S. oil inventories.

The latest American Petroleum Institute (API) weekly inventory data recorded a draw of 3.9 million barrels compared with an expected draw of around 2 million barrels.

The U.S. EIA also reported this morning that U.S. crude inventories dropped by 4.1 million barrels last week.

Cenovus Energy (CVE.TO) is gaining 2.36 percent and Crescent Point Energy (CPG.TO) is increasing 2.72 percent. Canadian Natural Resources (CNQ.TO) is advancing 1.98 percent and Husky Energy (HSE.TO) is higher by 2.01 percent. Imperial Oil (IMO.TO) is up 1.63 percent and Enbridge (ENB.TO) adding 1.22 percent. Suncor Energy (SU.TO) is climbing 1.75 percent and Encana (ECA.TO) is rising 2.29 percent.

The Gold Index is higher by 1.90 percent. Gold prices are inching higher Wednesday morning as the dollar relented versus major rivals.

Barrick Gold (ABX.TO) is rising 1.82 percent and B2Gold (BTO.TO) is gaining 0.95 percent. Goldcorp (G.TO) is climbing 1.84 percent and Kinross Gold (K.TO) is up 2.70 percent. IAMGOLD (IMG.TO) is increasing 1.10 percent and Eldorado Gold (ELD.TO) is advancing 3.93 percent. Yamana Gold (YRI.TO) is higher by 4.05 percent and Royal Gold (RGL.TO) adding 2.56 percent.

The Capped Materials Index is also up 1.89 percent. Agnico Eagle Mines (AEM.TO) is advancing 1.47 percent and Franco-Nevada (FNV.TO) is gaining 2.12 percent. Silver Wheaton (SLW.TO) is rising 3.33 percent and Agrium (AGU.TO) is higher by 0.62 percent.

The Capped Industrials Index is rising 1.50 percent. AutoCanada (ACQ.TO) is up 1.77 percent and Air Canada (AC.A.TO) is higher by 1.19 percent. Canadian National Railway (CNR.TO) is gaining 1.15 percent and Canadian Pacific Railway (CP.TO) is increasing 1.71 percent.

Bombardier Inc. (BBD-B.TO) is climbing 1.58 percent. The company's Transportation unit signed a rail vehicle services and maintenance contract with an undisclosed customer. The contract is valued at approximately 355 million euros or $393 million.

The Capped Information Technology Index is rising 1.06 percent. Constellation Software (CSU.TO) is higher by 2.06 percent and Sierra Wireless (SW.TO) is advancing 1.03 percent. BlackBerry (BB.TO) is increasing 1.54 percent and Descartes Systems Group (DSG.TO) is gaining 0.41 percent. Avigilon (AVO.TO) is also up 2.33 percent.

The Capped Telecommunication Services Index is up 0.70 percent. BCE (BCE.TO) is increasing 0.80 percent and TELUS (T.TO) is gaining 0.51 percent. Manitoba Telecom Services (MBT.TO) is rising 0.13 percent and Rogers Communication (RCI-B.TO) is adding 1.33 percent.

The heavyweight Financial Index is increasing 0.60 percent. National Bank of Canada (NA.TO) is climbing 0.16 percent and Toronto Dominion Bank (TD.TO) is gaining 0.80 percent. Royal Bank of Canada (RY.TO) is higher by 1.07 percent and Bank of Montreal (BMO.TO) is up 0.45 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.74 percent.

Canadian Imperial Bank of Commerce (CM.TO) is falling 3.37 percent, after it agreed to buy Chicago-based PrivateBancorp Inc in a cash-and-stock deal valued at about $4.9 billion.

The Capped Healthcare Index is gaining 0.39 percent. Extendicare (EXE.TO) is up 0.85 percent.

Oncolytics Biotech (ONC.TO) is rising 4.17 percent after announcing Phase 2 study results.

Empire Co. (EMP.A.TO), the parent of grocery chain Sobeys, posted a loss of $942.6-million in the fourth quarter. The stock is sinking 10.65 percent.

SNC-Lavalin Group (SNC.TO) is increasing 2.95 percent. The company was awarded a contract valued at over $20 million to provide management and technical guidance to Nucleoeléctrica Argentina SA.

On the economic front, Eurozone economic sentiment eased slightly in June ahead of the Brexit vote, the results off a survey by European Commission revealed Wednesday.

After rising for two straight months, the economic sentiment index slid marginally to 104.4 in June from revised 104.6 in May. The score was expected to remain at 104.7, unchanged from the initial estimate for May.

Germany consumer confidence is set to improve in July despite concerns about Brexit, survey data from the market research group GfK showed Wednesday. The forward-looking consumer sentiment index rose to 10.1, while it was expected to remain unchanged at 9.8.

German consumer prices accelerated as expected in June, preliminary estimate from Destatis showed Wednesday. Consumer prices rose 0.3 percent from last year, in line with expectations, following a 0.1 percent increase in May.

U.K. house price growth accelerated more than expected in June, data from the Nationwide Building Society showed Wednesday. House prices climbed 5.1 percent annually, following a 4.7 percent rise in May. Economists had forecast prices to grow 4.9 percent. This was also the fastest growth in three months.

U.K. mortgage approvals increased in May and secured lending accelerated from April, the Bank of England said Wednesday. The number of loans approved for house purchases rose to 67,042 from 66,205 in April. It was expected to fall to 65,000.

While the Commerce Department released a report on Wednesday showing a slightly smaller than expected increase in U.S. personal income in the month of May, the report also said personal spending climbed in line with economist estimates.

The report said personal income edged up by 0.2 percent in May after rising by an upwardly revised 0.5 percent in April.

Economists had expected income to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

Meanwhile, the Commerce Department also said personal spending climbed by 0.4 percent in May after spiking by an upwardly revised 1.1 percent in April. Spending had been expected to increase by 0.4 percent compared to the 1.0 percent jump originally reported for the previous month.

After reporting increases in U.S. pending home sales in the three previous months, the National Association of Realtors released a report on Wednesday showing that pending sales pulled back by more than expected in the month of May.

NAR said its pending home sales index slid 3.7 percent to 110.8 in May from a downwardly revised 115.0 in April. Economists had expected the index to drop by 1.0 percent.

In commodities, crude oil futures for July delivery are up 0.72 or 1.50 percent at $48.57 a barrel.

Natural gas for July is down 0.017 or 0.59 percent at $2.873 per million btu.

Gold futures for August are up $4.90 or 0.37 percent at $1,322.80 an ounce.

Silver for July is up $0.511 or 2.86 percent at $18.40 an ounce.