(RTTNews.com) – The Canadian stock market got off to a positive start Wednesday morning, following the modest gains of the previous two sessions. However, the market has begun to pare its early gains after the U.S. EIA report this morning showed an unexpected build in U.S. crude inventories.
The majority of the European markets are trading slightly to the downside Wednesday. The markets are easing back from their highest levels in 11 months. Investor concerns over the Italian banking systems are weighing on investor sentiment.
Markets in The United States are also dipping in early trade Wednesday. Traders appear to be taking a bit of a breather following the recent upward move in equities, which lifted the Dow and the Nasdaq to new record closing highs on Tuesday. The upcoming holiday weekend has also lead to light trading activity, as some traders look to get a head start on the Christmas break.
On Tuesday, the index closed up 23.11 points or 0.15 percent, at 15,292.96. The index scaled an intraday high of 15,324.87 and a low of 15,281.33.
The Capped Industrials Index is up 0.91 percent. Canadian Pacific Railway (CP.TO) is increasing 1.18 percent and Canadian National Railway (CNR.TO) is higher by 0.76 percent. Air Canada (AC.TO) is climbing 0.99 percent and Bombardier (BBD-B.TO) is gaining 3.41 percent.
The Energy Index is up 0.51 percent. Crude oil prices continue to rise Wednesday morning, extending a late-year rally after industry data showed a large drawdown in U.S. oil inventories. The American Petroleum Institute said stockpiles dropped 4.2 million barrels.
The U.S. EIA reported this morning that U.S. crude inventories unexpectedly increased by 2.3 million barrels last week.
Suncor Energy (SU.TO) is higher by 0.25 percent and Canadian Natural Resources (CNQ.TO) is adding 0.07 percent. Imperial Oil (IMO.TO) is gaining 1.17 percent. Enbridge (ENB.TO) is rising 0.73 percent. Crescent Point Energy (CPG.TO) is increasing 0.21 percent and Husky Energy (HSE.TO) is advancing 1.16 percent.
The Capped Healthcare Index is higher by 0.29 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 1.88 percent.
The Capped Telecommunication Services Index is gaining 0.21 percent. Rogers Communications (RCI.B.TO) is up 0.33 percent and Manitoba Telecom Services (MBT.TO) is rising 0.40 percent. BCE (BCE.TO) is also advancing 0.28 percent.
The Capped Information Technology Index is falling 0.44 percent. BlackBerry (BB.TO) is weakening by 2 percent and Descartes Systems Group (DSG.TO) is dipping 0.07 percent.
Constellation Software (CSU.TO) is surrendering 0.12 percent. The company announced that it has terminated its investment in Redknee Solutions.
The Capped Materials Index is down 0.43 percent. Franco-Nevada (FNV.TO) is declining 0.33 percent and Agnico Eagle Mines (AEM.TO) is falling 0.12 percent. Silver Wheaton (SLW.TO) is losing 0.51 percent and Agrium (AGU.TO) is dropping 1.46 percent. Potash Corp. of Saskatchewan (POT.TO) is also weakening by 1.64 percent.
The Gold Index is declining 0.39 percent. Gold prices are recovering some ground Wednesday morning, following yesterday’s drop.
IAMGOLD (IMG.TO) is lower by 0.22 percent and B2Gold (BTO.TO) is falling 0.69 percent. Barrick Gold (ABX.TO) is losing 1.62 percent and Kinross Gold (K.TO) is surrendering 0.74 percent.
The heavyweight Financial Index is decreasing 0.06 percent. Royal Bank of Canada (RY.TO) is lower by 0.14 percent and Canadian Imperial Bank of Commerce (CM.TO) is losing 0.12 percent. Bank of Montreal (BMO.TO) is declining 0.11 percent and Bank of Nova Scotia (BNS.TO) is down 0.14 percent. National Bank of Canada (NA.TO) is also weakening by 0.32 percent.
SNC-Lavalin Group Inc. (SNC.TO) has won five-year maintenance contracts in Alberta. Canaccord Genuity has also raised its target price to $ 67 from $ 53. Shares are climbing 3.85 percent.
On the economic front, French producer prices in the domestic market increased for the third straight month in November, the statistical office Insee reported Wednesday. Producer prices rose 0.8 percent month-over-month in November, following a 0.9 percent climb in October, which was revised up from a 0.8 percent rise reported earlier.
The U.K. budget deficit narrowed in November, the Office for National Statistics showed Wednesday. Public sector net borrowing excluding intervention dropped by GBP 0.6 billion from prior year to GBP 12.6 billion in November. The expected level was GBP 12.2 billion.
In commodities, crude oil futures for January delivery are up 0.18 or 0.34 percent at $ 53.48 a barrel.
Natural gas for January is up 1.95 or 5.98 percent at $ 3.458 per million btu.
Gold futures for February are up $ 1.10 or 0.10 percent at $ 1,134.70 an ounce.
Silver for March is down $ 0.052 or 0.32 percent at $ 16.065 an ounce.
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Plantations International