Canadian Stocks Are Rising After Weak Start -- Canadian Commentary

(RTTNews) - The Canadian stock market got off to a weak start Monday morning, but has since managed to climb back into the green. The market is attempting to recover from the sharp sell-off at the end of the previous trading week.

Geopolitical tensions and a possible exit of the UK from the EU has caused investors to flock to safe havens at the start of the new trading week. Gold stocks are benefitting from the move, while mining stocks are providing the biggest boost to the market. The energy sector is also rising this morning, despite the continued retreat in the price of crude oil, which has slipped below $49 a barrel.

Markets in Europe have dropped to their lowest levels in two months at the start of the new trading week. Growing uncertainty over Britain's referendum on its European Union membership later this month is weighing on investor sentiment.

An ORB poll for the Independent newspaper published late Friday showed that the "Leave" camp has a 10-point lead over "Remain" less than two weeks before the country votes in a referendum.

Markets in the United States are slightly weaker in early trade Monday. Traders are reacting to the mass shooting in a club in Orlando over the weekend, which left 50 people dead. However, trading activity is somewhat subdued ahead of the Federal Reserve's monetary policy announcement on Wednesday.

The benchmark S&P/TSX Composite Index is up 32.56 points or 0.23 percent at 14,070.10.

On Friday, the index closed down 202.48 points or 1.42 percent, at 14,037.54. The index scaled an intraday high of 14,214.77 and a low of 14,003.74.

The Diversified Metal and Mining Index is surging 4.72 percent. First Quantum Minerals (FM.TO) is rising 1.51 percent and HudBay Minerals (HBM.TO) is increasing 2.88 percent. Teck Resources (TCK-B.TO) is also climbing 3.73 percent.

The Gold Index is climbing 1.53 percent. Gold prices continue to rise Monday morning as traders flock to safe haven assets amid significant geopolitical tensions.

Barrick Gold (ABX.TO) is rising 3.72 percent and B2Gold (BTO.TO) is higher by 4.91 percent. Yamana Gold (YRI.TO) is increasing 1.26 percent and IAMGOLD (IMG.TO) is climbing 2.02 percent. Goldcorp (G.TO) is advancing 1.30 percent and Royal Gold (RGL.TO) is gaining 0.41 percent. Kinross Gold (K.TO) is up 2.42 percent and Eldorado Gold (ELD.TO) is adding 2.98 percent.

The Capped Materials Index is also up 2.0 percent. Agnico Eagle Mines (AEM.TO) is rising 2.54 percent and Franco-Nevada (FNV.TO) is climbing 0.82 percent. Silver Wheaton (SLW.TO) is increasing 1.33 percent and Agrium (AGU.TO) is adding 1.39 percent. Potash Corp. of Saskatchewan (POT.TO) is gaining 4.20 percent.

The Energy Index is up 1.00 percent. Crude oil prices are falling Monday morning, extending the losses of the previous 2 sessions. Crude has slipped beneath $49 a barrel.

Cenovus Energy (CVE.TO) is rising 2.19 percent and Canadian Natural Resources (CNQ.TO) is gaining 0.87 percent. Suncor Energy (SU.TO) is advancing 0.58 percent and Enbridge (ENB.TO) is adding 1.03 percent. Crescent Point Energy (CPG.TO) is increasing 1.27 percent and Husky Energy (HSE.TO) is higher by 1.03 percent. Encana (ECA.TO) is climbing 3.12 percent and Imperial Oil (IMO.TO) is up 0.23 percent. The Capped Healthcare Index is rising 0.54 percent. Valeant Pharmaceuticals International (VRX.TO) is gaining 1.01 percent.

ProMetic Life Science (PLI.TO) is surging 3.72 percent, after the U.S. FDA granted Fast Track Designation to its plasminogen.

The Capped Information Technology Index is rising 0.04 percent. Constellation Software (CSU.TO) is up 0.59 percent and Sierra Wireless (SW.TO) is increasing 0.04 percent. BlackBerry (BB.TO) is advancing 0.45 percent.

The Capped Telecommunication Services Index is down 0.83 percent. Rogers Communication (RCI-B.TO) is falling 0.62 percent and TELUS (T.TO) is losing 0.62 percent. BCE (BCE.TO) is decreasing 0.60 percent.

The Capped Industrials Index is dropping 0.60 percent. Canadian Pacific Railway (CP.TO) is losing 0.97 percent and Canadian National Railway (CNR.TO) is down 0.32 percent. Air Canada (AC.TO) is surrendering 0.41 percent and Finning International (FTT.TO) is weakening by 0.05 percent.

The heavyweight Financial Index is decreasing 0.12 percent. Canadian Imperial Bank of Commerce (CM.TO) is falling 0.51 percent and Bank of Nova Scotia (BNS.TO) is declining 0.08 percent. Toronto-Dominion Bank (TD.TO) is losing 0.23 percent and Bank of Montreal (BMO.TO) is surrendering 0.40 percent.

National Bank of Canada (NA.TO) is weakening by 0.44 percent. The company announced the closing of its $400 million NVCC preferred share offering.

Wellgreen Platinum (WG.TO) has announced the appointment of Diane Garrett, as president, CEO and director. The stock is surging 14.81 percent.

On the economic front, industrial output in China was up 6.0 percent on year in May, the National Bureau of Statistics said on Monday - in line with expectations and unchanged from the previous month.

The bureau also said that retail sales were up 10.0 percent on year - shy of forecasts for 10.1 percent, which would have been unchanged.

In commodities, crude oil futures for July delivery are down 0.29 or 0.59 percent at $48.78 a barrel.

Natural gas for July is up 0.06 or 2.35 percent at $2.616 per million btu.

Gold futures for August are up $4.80 or 0.38 percent at $1,280.70 an ounce.

Silver for July is down $0.005 or 0.03 percent at $17.325 an ounce.