Canadian Stocks Are Holding Onto Modest Gains -- Canadian Commentary

(RTTNews) - The Canadian stock market is up modestly in early trade Monday, in choppy trading. The market hit a new high for the year last week and appears to be having difficulty advancing further due to a lack of major market moving news. Energy stocks are the top gainers this morning, as reports of talks between Russia and Saudi Arabia to limit production have boosted crude oil prices to around $45 a barrel.

Markets in Europe are turning in a mixed performance Monday. The markets logged some quick gains, despite the weak Japanese GDP report, but were unable to sustain their early momentum. Some of the markets have slipped into negative territory.

Markets in the United States are modestly higher in early trade Monday. Trading activity is somewhat subdued as investors contemplate whether the markets will be able to extend their recent gains after reaching record high levels last week.

The benchmark S&P/TSX Composite Index is up 42.38 points or 0.29 percent at 14,789.83.

On Friday, the index closed down 48.61 points or 0.33 percent, at 14,747.45. The index scaled an intraday high of 14,799.02 and a low of 14,703.56.

The Energy Index is up 0.94 percent. Crude oil prices have risen to around $45 a barrel on reports of a meeting between Russia and Saudi Arabia to limit production.

Crescent Point Energy (CPG.TO) is gaining 1.09 percent and Encana (ECA.TO) is climbing 1.73 percent. Cenovus Energy (CVE.TO) is rising 1.04 percent and Canadian Natural Resources (CNQ.TO) is increasing 0.34 percent. Suncor Energy (SU.TO) is up 0.91 percent and Husky Energy (HSE.TO) is advancing 0.53 percent.

The Capped Industrials Index is rising 0.64 percent. Canadian National Railway (CNR.TO) is increasing 0.70 percent and Canadian Pacific Railway (CP.TO) is adding 0.73 percent. Bombardier (BBD-B.TO) is up 0.51 percent and Air Canada (AC.TO) is gaining 0.33 percent. Finning International (FTT.TO) is also higher by 2.06 percent.

The Capped Healthcare Index is advancing 0.37 percent. Valeant Pharmaceuticals International (VRX.TO) is surging 6.34 percent and Extendicare (EXE.TO) is adding 0.12 percent.

The Capped Materials Index is up 0.23 percent. Franco-Nevada (FNV.TO) is rising 0.37 percent and Agrium (AGU.TO) is increasing 1.19 percent. Potash Corp. of Saskatchewan (POT.TO) is also gaining 1.64 percent.

The Capped Information Technology Index is rising 0.22 percent. Sierra Wireless (SW.TO) is climbing 0.48 percent and Descartes Systems Group (DSG.TO) is advancing 1.06 percent. BlackBerry (BB.TO) is gaining 1.24 percent after an upgrade at Raymond James.

The Gold Index is higher by 0.09 percent. Gold prices are nearly flat this morning, holding around $1345 an ounce.

Yamana Gold (YRI.TO) is climbing 0.14 percent and Goldcorp (G.TO) is higher by 0.20 percent. Eldorado Gold (ELD.TO) is gaining 0.92 percent and B2Gold (BTO.TO) is also up 1.56 percent.

The heavyweight Financial Index is increasing 0.02 percent. Toronto Dominion Bank (TD.TO) is rising 0.303 percent and Bank of Montreal (BMO.TO) is gaining 0.22 percent. Royal Bank of Canada (RY.TO) is up 0.11 percent. The Capped Telecommunication Services Index is down 0.16 percent. TELUS (T.TO) is weakening by 0.39 percent and Rogers Communication (RCI-B.TO) is lower by 0.30 percent.

On the economic front, Japan's gross domestic product was flat on a seasonally adjusted quarterly basis in the second quarter of 2016, the Cabinet Office said on Monday. That missed expectations for an increase of 0.2 percent following the 0.5 percent increase in the first quarter.

Japan's industrial production increased more than initially estimated in June, final data published by the Ministry of Economy, Trade and Industry showed Monday. Industrial production grew a seasonally adjusted 2.3 percent month-over-month in June instead of a 1.9 percent rise reported earlier.

The average asking price for a house in the United Kingdom slipped 1.2 percent on month in August, property tracking website Rightmove said on Monday - coming in at 304,222 pounds. That follows the 0.9 percent decline in July.

Manufacturing activity in the New York region unexpectedly contracted in the month of August, according to a report released by the Federal Reserve Bank of New York on Monday. The New York Fed said its general business conditions index fell to a negative 4.21 in August from a positive 0.55 in July. A negative reading indicates a contraction in New York manufacturing activity.

The decline by the index came as a surprise to economists, who had expected the index to climb to a positive 2.50.

In commodities, crude oil futures for September delivery are up 0.56 or 1.26 percent at $45.05 a barrel.

Natural gas for September is up 0.038 or 1.47 percent at $2.624 per million btu.

Gold futures for December are up $1.80 or 0.13 percent at $1,345.00 an ounce.

Silver for September is up $0.082 or 0.42 percent at $19.785 an ounce.