Canadian Stocks Are Paring Early Gains -- Canadian Commentary

(RTTNews) - The Canadian stock market got off to a positive start Tuesday after data showed that the domestic economy expanded in line with expectations in August. Early strength in the gold sector also provided an early boost. However, the weak opening of the U.S. markets appears to be negatively impacting investor sentiment.

Data from Statistics Canada showed that the Canadian economy grew a seasonally adjusted 0.2 percent on month in August, matching expectations. This follows a 0.4 percent expansion in July.

Markets in Europe got off to a positive start Tuesday, following the release of the Chinese manufacturing reports. However, they have since slipped into negative territory after the weak opening on Wall Street.

Markets in the United States opened slightly higher this morning, but have since headed gradually lower. The Federal Reserve has begun its two day policy meeting and traders are awaiting the central bank's decision tomorrow. The Fed is widely expected to leave interest rates unchanged.

The benchmark S&P/TSX Composite Index is up 29.13 points or 0.20 percent at 14,816.40.

On Monday, the index closed up 1.98 points or 0.01 percent, at 14,787.27. The index scaled an intraday high of 14,830.66 and a low of 14,764.68.

The Gold Index is advancing 2.19 percent. Gold prices are rising Tuesday, supported by its safe haven status amid Wall Street fears that Hillary Clinton could be in danger in the upcoming election.

Kinross Gold (K.TO) is climbing 2.50 percent and Goldcorp (G.TO) is up 1.82 percent. B2Gold (BTO.TO) is higher by 2.06 percent and Barrick Gold (ABX.TO) is increasing 3.14 percent. Yamana Gold (YRI.TO) is gaining 2.30 percent and Eldorado Gold (ELD.TO) is adding 3.55 percent.

The Capped Materials Index is also up 1.70 percent. Franco-Nevada (FNV.TO) is rising 2.97 percent and Agnico Eagle Mines (AEM.TO) is advancing 0.91 percent. Silver Wheaton (SLW.TO) is increasing 2.20 percent and Potash Corp. of Saskatchewan (POT.TO) is higher by 0.41 percent.

The Capped Healthcare Index is higher by 1.85 percent. Extendicare (EXE.TO) is advancing 1.19 percent.

Valeant Pharmaceuticals International (VRX.TO) is climbing 4.72 percent. U.S. prosecutors are focusing on Valeant's former CEO and CFO as they build a fraud case against the company that could yield charges within weeks, Bloomberg reported citing people familiar with the matter.

The Energy Index is up 0.32 percent. Crude oil prices are holding near $47 a barrel Tuesday morning, after OPEC and Russia failed to make concrete plans to curb production. Iran has reportedly nixed plans for a meaningful reduction in output after years of crippling sanctions.

Crescent Point Energy (CPG.TO) is gaining 1.13 percent and Canadian Natural Resources (CNQ.TO) is adding 0.07 percent. Cenovus Energy (CVE.TO) is advancing 0.05 percent and Imperial Oil (IMO.TO) is increasing 1.36 percent.

The Capped Information Technology Index is rising 0.29 percent. Constellation Software (CSU.TO) is climbing 0.26 percent and Descartes Systems Group (DSG.TO) is gaining 0.04 percent.

Blackberry (BB.TO) is increasing 0.95 percent after it signed a deal with Ford to expand automaker's use of QNX auto technology.

The Capped Telecommunication Services Index is weakening 0.38 percent. Rogers Communication (RCI-B.TO) is declining 0.46 percent and Manitoba Telecom Services (MBT.TO) is losing 0.40 percent. TELUS (T.TO) is sliding 0.09 percent and BCE (BCE.TO) is surrendering 0.57 percent.

The Capped Industrials Index is down 0.35 percent. Canadian Pacific Railway (CP.TO) is falling 0.94 percent and Canadian National Railway (CNR.TO) is lower by 0.70 percent. Finning International (FTT.TO) is dropping 3.61 percent and Air Canada (AC.TO) is dipping 0.08 percent.

Bombardier (BBD-B.TO) is gaining 2.25 percent. The company revealed that Industrial Bank Financial Leasing is the customer that ordered 10 CRJ900 aircraft.

WestJet Airlines (WJA.TO) is climbing 5.33 percent. The company reported third quarter EPS of C$0.97, compared to C$0.82 last year.

The heavyweight Financial Index is decreasing 0.04 percent. Royal Bank of Canada (RY.TO) is down 0.42 percent and Toronto-Dominion Bank (TD.TO) is falling 0.33 percent. Bank of Montreal (BMO.TO) is declining 0.16 percent and Canadian Imperial Bank of Commerce (CM.TO) is weakening by 1.03 percent.

Thomson Reuters Corporation (TRI.TO) reported a profit for its third quarter that rose from last year. Shares are advancing 3.76 percent.

On the economic front, China's manufacturing sector growth improved strongly at the start of the fourth quarter as output expanded at the fastest rate in over five-and-a-half years in October.

The seasonally adjusted Caixin factory Purchasing Managers' Index rose to 51.2 in October from 50.1 in September, survey data from IHS Markit showed Tuesday. The score was expected to remain at 50.1.

At the same time, the official manufacturing PMI rose to 51.2 in October from 50.4 in September, the National Bureau of Statistics reported. Similarly, the non-manufacturing PMI improved to 54.0 from 53.7 in September.

U.K. manufacturing sector expanded at a slower-than-expected pace in October, despite a weak currency-driven improvement in export orders, survey data from IHS Markit showed Tuesday. The Chartered Institute of Procurement & Supply/Markit Purchasing Managers' Index fell to 54.3 in October from 55.5 in September. The expected score was 54.5.

In commodities, crude oil futures for December delivery are up 0.16 or 0.34 percent at $47.02 a barrel.

Natural gas for December is down 0.121 or 4.00 percent at $2.905 per million btu.

Gold futures for December are up $14.30 or 1.12 percent at $1,287.40 an ounce.

Silver for December is up $0.504 or 2.83 percent at $18.30 an ounce.