Canadian Stocks Have Turned Positive After Weak Start -- Canadian Commentary

(RTTNews) - The Canadian stock market began Thursday's session in the red, but has since pared its early losses and turned positive. Gold stocks are recovering some ground following yesterday's sell-off, despite the continued dip in gold prices this morning. Healthcare stocks are also gaining ground in early trade.

Markets in Europe got off to a weak start Thursday and have been stuck in a sideways trend throughout the session, although they are off their early lows. Weak German business sentiment data has investors in a negative mood. Traders are also reluctant to make any major moves ahead of tomorrow's speech from Fed Chair Janet Yellen.

Markets in the United States were down slightly at the open of trade Thursday, following yesterday's losses, but have since managed to inch into positive territory. Traders continue to look ahead to a speech by Federal Reserve Chair Janet Yellen on Friday.

Yellen is due to speak at the Kansas City Fed's monetary policy symposium in Jackson Hole, Wyoming, and traders are likely to look for clues about the outlook for interest rates in her remarks.

The benchmark S&P/TSX Composite Index is up 6.11 points or 0.04 percent at 14,632.35.

On Wednesday, the index closed down 138.53 points or 0.94 percent, at 14,626.24. The index scaled an intraday high of 14,757.80 and a low of 14,618.40.

The Gold Index is higher by 1.90 percent. Gold prices are slipping further Thursday morning, after dropping 7 percent yesterday. Talk of an impending interest rate hike from the Federal Reserve has been weighing on the precious metal.

Barrick Gold (ABX.TO) is gaining 1.28 percent and Kinross Gold (K.TO) is rising 3.30 percent. B2Gold (BTO.TO) is up 5.46 percent and Eldorado Gold (ELD.TO) is adding 0.21 percent. IAMGOLD (IMG.TO) is advancing 3.37 percent and Yamana Gold (YRI.TO) is increasing 1.38 percent.

Goldcorp (G.TO) is climbing 2.08 percent. The company is under scrutiny in Mexico over its handling of a mine leak.

The Capped Materials Index is also up 1.28 percent. Agnico Eagle Mines (AEM.TO) is higher by 1.28 percent and Franco-Nevada (FNV.TO) is climbing 2.06 percent. Silver Wheaton (SLW.TO) is advancing 1.95 percent.

The Capped Healthcare Index is advancing 0.92 percent. Concordia Healthcare (CXR.TO) is gaining 0.09 percent and Valeant Pharmaceuticals International (VRX.TO) is climbing 4.57 percent.

The Energy Index is up 0.11 percent. Crude oil prices were down early Thursday, but are attempting to stabilize around $47 a barrel. The EIA announced yesterday that U.S. crude inventories increased by 2.5 million barrels last week.

Crescent Point Energy (CPG.TO) is up 0.15 percent and Canadian Natural Resources (CNQ.TO) is rising 0.39 percent.

The Capped Industrials Index is gaining 0.14 percent. AutoCanada (ACQ.TO) is up 0.09 percent and Finning International (FTT.TO) is adding 0.56 percent. Canadian National Railway (CNR.TO) is increasing 0.08 percent and Canadian Pacific Railway (CP.TO) is climbing 0.21 percent. Bombardier (BBD-B.TO) is also higher by 0.99 percent.

The heavyweight Financial Index is increasing 0.02 percent. Bank of Montreal (BMO.TO) is gaining 0.64 percent and Bank of Nova Scotia (BNS.TO) is advancing 0.25 percent.

Canadian Imperial Bank of Commerce (CM.TO) is climbing 1.95 percent after its profit surged 47% in the third quarter.

Toronto Dominion Bank (TD.TO) is dipping 0.02 percent despite reporting earnings that soared on U.S. retail growth.

The Capped Information Technology Index is weakening by 0.22 percent. Constellation Software (CSU.TO) is decreasing 0.80 percent and Avigilon (AVO.TO) is losing 0.63 percent.

BlackBerry (BB.TO) is rising 0.39 percent after the company has prevailed in a shareholder lawsuit that charged it with fraudulently inflating its stock price.

The Capped Telecommunication Services Index is down 0.18 percent. TELUS (T.TO) is weakening by 0.37 percent and BCE (BCE.TO) is losing 0.05 percent. Rogers Communication (RCI-B.TO) is falling 0.02 percent and Manitoba Telecom Services (MBT.TO) is lower by 0.41 percent.

On the economic front, data from Statistics Canada revealed this morning that Canadian average weekly employee earnings increased by 0.4 percent in June from the previous month. On a year over year basis, earnings were up 0.5 percent.

German business confidence dropped unexpectedly to a 6-month low in August and marked the biggest monthly fall in more than four years as companies assessed the current situation and future expectations more poorly after Britons voted to exit the EU.

The business sentiment index dropped to 106.2 in August from 108.3 in July, results of the Ifo survey showed Thursday. The reading was expected to rise to 108.5.

French manufacturing confidence weakened unexpectedly in August, survey data from the statistical office Insee showed Thursday. The manufacturing sentiment dropped to 101 in August from 103 in July. Economists had forecast the indicator to remain unchanged at 103. A similar low reading was last seen in June 2015.

British retail sales volume increased in August after declining in prior month, the Distributive Trades Survey from the Confederation of British Industry showed Thursday. The retail sales balance rose to +9 percent from -14 percent in July. The score was above expectations of -12 percent. Economists had expected a zero balance for August.

After reporting a steep drop in new orders for U.S. manufactured durable goods in the previous month, the Commerce Department released a report on Thursday showing that durable goods orders rebounded by more than expected in the month of July.

The Commerce Department said durable goods orders surged up by 4.4 percent in July after tumbling by a revised 4.2 percent in June. Economists had expected orders to climb by about 3.7 percent compared to the 4.0 percent slump that had been reported for the previous month.

First-time claims for U.S. unemployment benefits unexpectedly saw another modest decrease in the week ended August 20th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims edged down to 261,000, a decrease of 1,000 from the previous week's unrevised level of 262,000. Economists had expected claims to rise to 265,000.

In commodities, crude oil futures for September delivery are up 0.30 or 0.64 percent at $47.07 a barrel.

Natural gas for September is up 0.024 or 0.86 percent at $2.82 per million btu.

Gold futures for December are down $4.60 or 0.35 percent at $1,325.10 an ounce.

Silver for September is down $0.021 or 0.11 percent at $18.535 an ounce.