Canadian Stocks Are Nearly Flat In Early Trade -- Canadian Commentary

(RTTNews) - The Canadian stock market has recovered most of its early losses Thursday morning and is back to nearly unchanged. The market has been on the rise since the beginning of the trading week, but is showing signs of stalling out ahead of the meeting of major oil producers this weekend in Doha.

Gold stocks remain under pressure this morning following yesterday's strong Chinese export report. The report sparked a rally in global equity markets as concerns eased over the health of the global economy and investors exited safe havens.

The European markets are turning in a mixed performance Thursday. The markets have been stuck in a sideways trend today, following four straight days of gains. Investor sentiment turned cautious after Burberry warned of challenging market conditions ahead.

Markets in the United States are hovering near the flat line this morning, currently trading slightly to the downside. Today's tame inflation data may add to recent optimism that the Federal Reserve will delay plans to further normalize monetary policy.

The benchmark S&P/TSX Composite Index is down 1.32 points or 0.01 percent at 13,670.03.

On Wednesday, the index closed up 89.93 points or 0.66 percent, at 13,671.35. The index scaled an intraday high of 13,703.61 and a low of 13,608.89.

The Gold Index is declining 0.53 percent. Gold prices continue to fall this morning, following yesterday's stronger than expected Chinese export report.

Goldcorp (G.TO) is falling 1.72 percent and Royal Gold (RGL.TO) is lower by 0.44 percent. Barrick Gold (ABX.TO) is surrendering 0.19 percent and Kinross Gold (K.TO) is losing 1.08 percent. B2Gold (BTO.TO) is declining 1.71 percent and Yamana Gold (YRI.TO) is down 1.17 percent. IAMGOLD (IMG.TO) is also decreasing 0.83 percent.

The Capped Materials Index is also down 1.02 percent. Agnico Eagle Mines (AEM.TO) is decreasing 1.16 percent and Franco-Nevada (FNV.TO) is slipping 0.07 percent. Silver Wheaton (SLW.TO) is declining 1.16 percent and Agrium (AGU.TO) is sinking 4.38 percent. Potash Corp. of Saskatchewan (POT.TO) is also weakening by 1.87 percent.

The Capped Health Care Index is lower by 0.08 percent. Valeant Pharmaceuticals International (VRX.TO) is losing 2.62 percent. Standard & Poor's Ratings Services has lowered its rating on Valeant to B from B+, also lowered the company's secured debt rating, to BB- from BB. The move followed yesterday's call by a large holder for a default as a result of the drugmaker's failure to file its annual report.

The Capped Information Technology Index is dipping 0.04 percent. Constellation Software (CSU.TO) is down 0.10 percent and BlackBerry (BB.TO) is lower by 0.98 percent. Descartes Systems Group (DSG.TO) is surrendering 0.32 percent.

The Diversified Metal and Mining Index is climbing 0.87 percent. First Quantum Minerals (FM.TO) is increasing 2.66 percent and Teck Resources (TCK-B.TO) is gaining 0.55 percent. Sherritt International (S.TO) is adding 1.25 percent.

The heavyweight Financial Index is increasing 0.56 percent. Bank of Montreal (BMO.TO) is up 0.34 percent and Royal Bank of Canada (RY.TO) is higher by 1.00 percent. Canadian Imperial Bank of Commerce (CM.TO) is gaining 0.23 percent and National Bank of Canada (NA.TO) is advancing 1.18 percent. Toronto-Dominion Bank (TD.TO) is adding 0.58 percent.

Bank of Nova Scotia (BNS.TO) is rising 0.30 percent. The Globe and Mail reports that the company has made a new round of job cuts. Scotiabank said in a press release it is moving toward "digitally-enabled branch formats that will allow our employees to be more focused on providing financial advice and solutions."

The Capped Industrials Index is gaining 0.32 percent. Canadian National Railway (CNR.TO) is advancing 0.42 percent and AutoCanada (ACQ.TO) is higher by 1.21 percent. Bombardier (BBD-B.TO) is increasing 4.20 percent and Air Canada (AC.TO) is rising 1.68 percent. Finning International (FTT.TO) is also climbing 1.21 percent.

The Energy Index is up 0.21 percent. Crude oil prices are flat Thursday morning, staying near this week's yearly peak near $42 a barrel. Investors are awaiting the upcoming Doha meeting between major producers this weekend.

Imperial Oil (IMO.TO) is increasing 1.11 percent and Crescent Point Energy (CPG.TO) is gaining 0.50 percent. Canadian Natural Resources (CNQ.TO) is rising 0.37 percent and Encana (ECA.TO) is climbing 1.59 percent. Cenovus Energy (CVE.TO) is up 0.84 percent.

The Capped Telecommunication Services Index is rising 0.09 percent. TELUS (T.TO) is advancing 0.22 percent and Rogers Communication (RCI-B.TO) is up 0.28 percent.

Shaw Communications (SJR.B.TO) said earnings totaled C$164 million, or C$0.32 per share. This was lower than C$168 million, or C$0.34 per share, in last year's second quarter. The stock is declining 2.43 percent.

On the economic front, Statistics Canada reported this morning that the Canadian new housing price index rose 0.2 percent in February. Expectations had been for an increase of 0.1 percent.

Euro area consumer prices were unchanged in March after a decline in the previous month, revised data from Eurostat showed Thursday.

The consumer price index showed no change from the same month a year ago, following a 0.2 percent drop in February. Headline inflation initially reported for March was a 0.1 percent fall, a second straight decline.

The house price balance in the United Kingdom weakened considerably in March, the latest survey from the Royal Institution of Chartered Surveyors showed on Thursday with a score of 42 percent. That was well shy of forecasts for a reading of 50 percent, which would have been unchanged from February.

Consumer prices in the U.S. saw a modest increase in the month of March, the Labor Department revealed in a report on Thursday, with the uptick in prices falling short of economist estimates. The Labor Department said its consumer price index inched up by 0.1 percent in March after dipping by 0.2 percent in February. Economists had expected the index to rise by 0.2 percent.

Initial jobless claims in the U.S. unexpectedly decreased in the week ended April 9th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims fell to 253,000, a decrease of 13,000 from the previous week's revised level of 266,000.

The drop came as a surprise to economists, who had expected jobless claims to inch up to 270,000 from the 267,000 originally reported for the previous week.

In commodities, crude oil futures for May delivery are up 0.14 or 0.34 percent at $41.90 a barrel.

Natural gas for May is down 0.055 or 2.70 percent at $1.981 per million btu.

Gold futures for June are down $13.20 or 1.06 percent at $1,235.10 an ounce.

Silver for May is down $0.115 or 0.70 percent at $16.21 an ounce.