The Canadian stock market has been rising steadily since the open of trade Monday and has broken out past the 16,000 point level for the first time. Gains among healthcare and energy stocks have helped to propel the market higher at the start of the new trading week.
Investors have much to look forward to this week, including a number of central bank meetings. The Bank of Japan, the Federal Reserve and the Bank of England are all due to hold meetings this week.
Markets in Europe have been stuck in a narrow trading range since the open Monday. The markets are turning in a mixed performance, but remain little changed overall.
Markets on Wall Street are also trading mixed at the start of the new week. The S&P 500 and the Dow Jones Industrial and slightly lower this morning, while the Nasdaq is posting modest gains. Traders are expecting earnings from some major companies this week and are also looking forward to the release of the U.S. jobs report on Friday.
The benchmark S&P/TSX Composite Index is up 67.28 points or 0.42 percent at 16,020.79.
On Friday, the index closed up 61.88 points or 0.39 percent, at 15,953.51. The index scaled an intraday high of 15,963.60 and a low of 15,872.94.
The Capped Healthcare Index is higher by 3.77 percent. Valeant Pharmaceuticals International (VRX.TO) is advancing 1.71 percent and Extendicare (EXE.TO) is gaining 1.07 percent. Tecsys (TCS.TO) is also rising 0.62 percent.
The Energy Index is rising 0.72 percent. Crude oil prices are up slightly Monday morning, holding above $54 a barrel.
Husky Energy (HSE.TO) is rising 0.97 percent and Suncor Energy (SU.TO) is climbing 0.37 percent. Canadian Natural Resources (CNQ.TO) is increasing 2.54 percent and Encana (ECA.TO) is gaining 0.97 percent. Crescent Point Energy (CPG.TO) is higher by 6.51 percent and Imperial Oil (IMO.TO) is advancing 0.59 percent
Cenovus Energy Inc. (CVE.TO) announced the appointment of Alex Pourbaix as President & CEO and member of the Board, effective November 6. He replaces Brian Ferguson. Shares are up 0.32 percent.
The Capped Materials Index is up 0.91 percent. Agrium (AGU.TO) is climbing 0.83 percent and Potash Corp. of Saskatchewan (POT.TO) is gaining 0.98 percent. Franco-Nevada (FNV.TO) is adding 0.85 percent.
The Gold Index is increasing 0.49 percent. Gold prices are inching higher Monday morning, having seen little movement over the past few sessions.
Goldcorp (G.TO) is climbing 1.55 percent and Barrick Gold (ABX.TO) is climbing 0.21 percent. Kinross Gold (K.TO) is advancing 0.98 percent and Yamana Gold (YRI.TO) is adding 0.61 percent. Eldorado Gold (ELD.TO) is increasing 3.03 percent and B2Gold (BTO.TO) is rising 1.86 percent.
The heavyweight Financial Index is increasing 0.28 percent. Royal Bank of Canada (RY.TO) is climbing 0.01 percent and Toronto-Dominion Bank (TD.TO) is up 0.34 percent. Bank of Nova Scotia (BNS.TO) is higher by 0.37 percent and Bank of Montreal (BMO.TO) is advancing 0.01 percent. National Bank of Canada (NA.TO) is gaining 0.27 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.36 percent.
The Capped Information Technology Index is gaining 0.26 percent. BlackBerry (BB.TO) is rising 2.48 percent and Sierra Wireless (SW.TO) is adding 0.21 percent.
The Capped Telecommunication Services Index is up 0.22 percent. Rogers Communications (RCI-B.TO) is higher by 0.33 percent.
TELUS (T.TO) is increasing 0.39 percent. The company plans to acquire Xavient Information Systems, an IT consulting and software services company, for $250 million.
Constellation Brands Inc. (STZ) has acquired a minority stake in Ontario-based Canopy Growth Corp. (WEED.TO), a provider of medicinal cannabis products. The stock is climbing 13.37 percent.
On the economic front, Eurozone economic confidence rose to the highest level since early 2001, survey results from the European Commission showed Monday.
The economic sentiment index improved more-than-expected to 114.0 in October from 113.1 in September. This was the highest since January 2001, when the reading was 144.4. The expected score was 113.3.
Germany's retail sales grew more than expected in September, figures from Destatis revealed Monday. Retail sales increased 4.1 percent year-on-year in September, the biggest in four months. Economists had forecast sales to rise 3.2 percent following the revised 3 percent increase in August.
Germany's unemployment rate remained unchanged in September, data from Destatis showed Monday. The jobless rate held steady at adjusted 3.6 percent in September. On an unadjusted basis, the unemployment rate fell to 3.5 percent from 3.7 percent in August.
Germany's inflation eased for the first time in five months in October and at a faster pace than expected, preliminary data from the Destatis showed Monday. The consumer price index rose 1.6 percent year-on-year following 1.8 percent climb in September. Economists had forecast 1.7 percent inflation. A similar rate was previously seen in June.
UK mortgage approvals declined to a 3-month low in September, the Bank of England reported Monday. The number of mortgage approvals fell to 66,232 in September from 67,232 in August. This was the lowest since June but above the expected level of 66,000.
While the Commerce Department released a report on Monday showing U.S. personal income rose in line with economists in the month of September, the report also showed a bigger than expected jump in personal spending.
The report said personal income climbed by 0.4 percent in September after edging up by 0.2 percent in August. The increase in income matched economist estimates.
The Commerce Department also said personal spending surged up by 1.0 percent in September after inching up by 0.1 percent in August. Economists had expected spending to increase by 0.8 percent.
In commodities, crude oil futures for November delivery are up 0.17 or 0.32 percent at $54.07 a barrel.
Natural gas for November is up 0.028 or 0.94 percent at $2.992 per million btu.
Gold futures for December are up 1.89 or 0.15 percent at $1,273.70 an ounce.
Silver for December is up 0.013 or 0.08 percent at $16.765 an ounce.
For comments and feedback contact: editorial@rttnews.com
Market Analysis