(RTTNews.com) - The Canadian stock market is rallying in early trade Wednesday, as it attempts to bounce back from two days of losses. The market is receiving a boost from rising commodity prices. Gold and energy stocks are among the best performers in early trade.
Markets in Europe and the United States are climbing ahead of the Federal Reserve announcement this afternoon. The Fed is widely expected to hold off on raising interest rates, but traders will be paying close attention to any signals regarding a rate hike in December.Struggling Alberta announced stimulus plans to offset a huge drop in oil prices. Approximately $34 billion of capital spending will fund transit, roads, schools, hospitals and other projects over the next five years. Alberta hopes oil prices will have snapped back by then, allowing the province to pay for significant deficit spending.
The benchmark S&P/TSX Composite Index is up 184.08 points or 1.34 percent at 13,883.68.
On Tuesday, the index closed down 91.30 points or 0.66 percent, at 13,699.60. The index scaled an intraday high of 13,789.33 and a low of 13,662.48.
The Gold Index is increasing by 3.72 percent. Gold prices are rising Wednesday amid speculation the Federal Reserve will delay raising interest rates and issue a dovish outlook on monetary policy later today.
Kinross Gold (K.TO) is gaining 4.30 percent and Yamana Gold (YRI.TO) is rising 6.36 percent. Goldcorp (G.TO) is advancing 2.36 percent and Eldorado Gold (ELD.TO) is climbing 2.64 percent. Barrick Gold (ABX.TO) is up 6.59 percent and IAMGOLD (IMG.TO) is increasing by 4.20 percent. Royal Gold (RGL.TO) is higher by 2.90 percent and B2Gold (BTO.TO) is adding 1.99 percent.
The Capped Materials Index is also up 2.51 percent. Franco-Nevada (FNV.TO) is higher by 1.29 percent and Agnico Eagle Mines (AEM.TO) is adding 3.15 percent. Silver Wheaton (SLW.TO) is rising 3.54 percent and Agrium (AGU.TO) is gaining 1.73 percent. Potash Corp. of Saskatchewan (POT.TO) is also climbing 1.67 percent.
The Energy Index is increasing 2.61 percent. Crude oil prices are crawling higher Wednesday morning after big losses in the previous few sessions.
Canadian Oil Sands (COS.TO) is gaining 0.41 percent and Suncor Energy (SU.TO) is up 0.79 percent. Canadian Natural Resources (CNQ.TO) is advancing 3.08 percent and Encana (ECA.TO) is climbing 3.05 percent. Pacific Exploration & Production (PRE.TO) is higher by 1.82 percent and Enbridge (ENB.TO) is rising 2.07 percent. Cenovus Energy (CVE.TO) is increasing 2.75 percent and Crescent Point Energy (CPG.TO) is surging 4.14 percent.
The Diversified Metal and Mining Index is advancing 1.72 percent. First Quantum Minerals (FM.TO) is up 1.98 percent and HudBay Mineral (HBM.TO) is increasing 3.01 percent. Lundin Mining (LUN.TO) is gaining 0.22 percent.
The Capped Industrials Index is up 1.89 percent. Air Canada (AC.TO) is higher by 0.09 percent and Finning International (FTT.TO) is rising 1.87 percent. Bombardier (BBD-A.TO) is surging 8.78 percent.
Canadian Pacific Railway (CP.TO) is higher by 1.01 percent. The company has appointed Jeffrey J. Ellis as Chief Legal Officer and Corporate Secretary effective December 1. He will replace Paul Guthrie, who is retiring.
Canadian National Railway (CNR.TO) is gaining 3.26 percent. The company's third quarter profit increased to C$1.26 per share, from C$1.04 per share last year.
The Capped Health Care Index is climbing 2.01 percent. Concordia Healthcare (CXR.TO) is gaining 5.31 percent and Extendicare (EXE.TO) is up 1.65 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 3.41 percent.
The Capped Information Technology Index is rising 1.03 percent. Avigilon (AVO.TO) is climbing 5.05 percent and BlackBerry (BB.TO) is advancing 2.48 percent. Sierra Wireless (SW.TO) is increasing 1.29 percent.
The heavyweight Financial Index is rising 0.82 percent. Toronto-Dominion Bank (TD.TO) is up 0.67 percent and Canadian Imperial Bank of Commerce (CM.TO) is gaining 1.13 percent. Royal Bank of Canada (RY.TO) is climbing 0.82 percent and National Bank of Canada (NA.TO) is advancing 1.36 percent. Bank of Nova Scotia (BNS.TO) is higher by 0.69 percent and Bank of Montreal (BMO.TO) is up 0.79 percent.
The Capped Telecommunication Services Index is higher by 0.37 percent. TELUS (T.TO) is up 0.43 percent and Rogers Communication (RCI-A.TO) is gaining 0.94 percent. Manitoba Telecom Services (MBT.TO) is advancing 0.21 percent.
On the economic front, China's consumer sentiment decreased markedly to a record low in October, results of a survey by MNI and Westpac showed Wednesday. The Westpac-MNI consumer sentiment index fell to 109.7 in October from 118.2 in September, marking the weakest reading since the survey began in 2007.
German consumer confidence is set to weaken for a third straight month in November to its lowest level since early this year as economic expectations deteriorated as the huge influx of migrants raised fears of unemployment.
The forward-looking GfK consumer confidence index for November dropped to 9.4 from 9.6 in October, results of the monthly survey by the GfK showed Wednesday. The score was in line with economists' expectations. The latest reading was the lowest since February.
Germany's import prices declined at a faster-than-expected pace in September, figures from Destatis showed Wednesday. The import price index slid 4.0 percent year-over-year in September, exceeding economists' expectations for a 3.5 percent decrease. In August, prices had fallen 3.1 percent.
French consumer confidence weakened unexpectedly in October, figures from the statistical office INSEE showed Wednesday. The consumer confidence index dropped to 96.0 in October from September's almost 8-year high of 97.0. Economists had expected the index to remain stable at 97.0.
England/Wales house price growth accelerated in September to the highest level in six months, figures from Land Registry showed Wednesday. House prices climbed 5.3 percent year-over-year in September, faster than August's 21-month low of 4.3 percent hike. In July, prices had risen 4.5 percent.
In commodities, crude oil futures for November delivery are up $1.26 or 2.92 percent at $44.46 a barrel.
Natural gas for November is down 0.035 or 1.67 percent at $2.057 per million btu.
Gold futures for December are up $14.10 or 1.21 percent at $1,179.90 an ounce.
Silver for December is up $0.367 or 2.31 percent at $16.23 an ounce.
Source: http://www.nasdaq.com/article/canadian-stocks-are-up-sharply-on-commodity-strength--canadian-commentary-20151028-00908
