Canadian Stocks Are Rising On Global Cues -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising in early trade Wednesday, extending its gains from the previous two sessions. Financial and mining stocks are among the best performing stocks this morning. Weak Canadian trade data is being overshadowed by better than expected U.S. employment data, as investors gear up for the U.S. employment report at the end of the week.

The Canadian trade deficit narrowed to C$2.97 billion this morning, from the revised C$3.85 billion deficit in March, according to a report from Statistics Canada. Economists had been expecting a deficit of C$2.15 billion.

Markets in Europe are positive, despite continued concerns over Greece. The European Central Bank on Wednesday left its key interest rates unchanged at a record low for a seventh consecutive session amid expectations that Greece and creditors will reach a deal later in the day, providing some relief from days of uncertainty.

Greek Prime Minister Alexis Tsipras is set to meet European Commission President Jean-Claude Juncker on Wednesday in Brussels and will be presented with what is dubbed "the final offer" from creditors - the European Union, the European Central Bank and the International Monetary Fund.

The Greek government, meanwhile, claimed that Tsipras will be discussing its own plan in Brussels, which was sent to creditors on Monday.

Markets in the United States are also trading in the green this morning. U.S. private sector employment and trade data exceeded expectations today, but the service sector PMI report was disappointing.

After reporting slowing private sector job growth over the past several months, payroll processor ADP released a report on Wednesday showing that the pace of job growth re-accelerated in the month of May. ADP said the private sector added 201,000 jobs in May following a downwardly revised increase of 165,000 jobs in April.

Economists had expected an increase of about 200,000 jobs compared to the addition of 169,000 jobs originally reported for the previous month.

Reflecting a notable pullback in the value of imports, the Commerce Department released a report on Wednesday showing that the U.S. trade deficit narrowed by more than expected in the month of April.

The report said the trade deficit narrowed to $40.9 billion in April from a revised $50.6 billion in March. Economists had expected the deficit to drop to $44.0 billion from the $51.4 billion originally reported for the previous month.

While the Institute for Supply Management released a report on Wednesday showing continued growth in U.S. service sector activity in the month of May, the pace of growth in the sector slowed by much more than economists had anticipated.

The ISM said its non-manufacturing index dropped to 55.7 in May after climbing to a five-month high of 57.8 in April. Economists had expected the index to show a much more modest drop to a reading of 57.2.

The benchmark S&P/TSX Composite Index is up 64.78 points or 0.43 percent at 15,169.52.

On Tuesday, the index closed up 30.61 points or 0.20 percent, at 15,104.74. The index scaled an intraday high of 15,155.65 and a low of 15,049.54.

The Diversified Metal and Mining Index is climbing by 1.72 percent. HudBay Mineral (HBM.TO) is higher by 2.65 percent and First Quantum Minerals (FM.TO) is advancing by 3.39 percent. Lundin Mining (LUN.TO) is rising by 2.80 percent and Sherritt International (S.TO) is up 3.54 percent.

The heavyweight Financial Index is higher by 0.76 percent. Toronto-Dominion Bank (TD.TO) is rising by 0.61 percent and Royal Bank of Canada (RY.TO) is gaining 0.96 percent. Canadian Imperial Bank of Commerce (CM.TO) is higher by 0.56 percent and Bank of Montreal (BMO.TO) is climbing by 0.67 percent. Bank of Nova Scotia (BNS.TO) is rising by 0.57 percent and National Bank of Canada (NA.TO) is advancing by 0.88 percent.

Laurentian Bank of Canada (LB.TO) is gaining 1.68 percent. The company reported second quarter adjusted EPS of C$1.38, compared to C$1.29 last year.

The Capped Information Technology Index is advancing by 0.75 percent. BlackBerry (BB.TO) is gaining 1.76 percent and Constellation Software (CSU.TO) is up 1.12 percent. Descartes Systems Group is adding 0.97 percent.

Sierra Wireless (SW.TO) is higher by 1.94 percent, after it announced a collaboration with PSA Peugeot Citroën.

The Capped Industrials Index is rising by 0.62 percent. Canadian Pacific Railway (CP.TO) is climbing by 0.90 percent and Canadian National Railway (CNR.TO) is up 0.31 percent. Air Canada (AC.TO) is higher by 1.11 percent.

WestJet Airlines (WJA.TO) is up 1.43 percent. The company reported a 6.6 percent increase in May traffic, capacity was up 9.1 percent, while load factor declined 1.8 percentage points.

The Capped Telecommunication Services Index is climbing by 0.15 percent. BCE (BCE.TO) is higher by 0.53 percent and TELUS (T.TO) is gaining 0.64 percent.

The Capped Materials Index is up 0.44 percent. Franco-Nevada (FNV.TO) is gaining 0.16 percent and Potash Corp. of Saskatchewan (POT.TO) is climbing by 0.69 percent. Agrium (AGU.TO) is also higher by 0.64 percent.

The Gold Index is falling by 0.25 percent. Gold prices barely budged Wednesday morning in New York, stuck below $1200 an ounce amid conflicting reports about the Greek debt crisis.

IAMGOLD (IMG.TO) is down 0.78 percent and Kinross Gold (K.TO) is decreasing by 1.68 percent. Eldorado Gold (ELD.TO) is losing 1.50 percent. The Energy Index is decreasing by 0.23 percent. Crude oil prices turned lower Wednesday morning, reversing gains from earlier in the week as the dollar rebounded.

Crescent Point Energy (CPG.TO) is lower by 0.25 percent and Pacific Rubiales Energy (PRE.TO) is losing 0.67 percent. Canadian Natural Resources (CNQ.TO) is down 0.52 percent and Cenovus Energy (CVE.TO) is losing 0.67 percent.

The Capped Health Care Index is down 0.15 percent. Extendicare (EXE.TO) is falling by 0.97 percent and Concordia Healthcare (CXR.TO) is losing 0.58 percent.

Canaccord Genuity (CF.TO) is surging by 4.47 percent. The company reported fourth quarter adjusted EPS of C$0.05, which topped the consensus estimate of C$0.03.

On the economic front, Eurozone retail sales recovered at a faster than expected pace in April, Eurostat reported Wednesday. The volume of retail sales increased 0.7 percent month-on-month in April reversing a 0.6 percent fall in March. Sales were expected to grow by 0.6 percent.

The euro area jobless rate dropped as expected to the lowest level in more than three years in April, data from Eurostat revealed Wednesday. The unemployment rate came in at 11.1 percent in April compared to revised 11.2 percent in March. This was the lowest rate since February 2012, when it was 10.9 percent. The rate came in line with expectations.

Eurozone private sector growth slowed less than estimated in May, final data from Markit showed Wednesday. The final composite output index fell to 53.6 in May from 53.9 in April. But it was above the flash score of 53.4.

Germany's private sector grew at the weakest pace in five months in May, final data from Markit Economics showed Wednesday. The final composite output index dropped to 52.6 in May from 54.1 in April. It was also below the flash reading of 52.8.

The French private sector activity expanded at the fastest pace in three months in May as service growth improved amid slower decline in manufacturing output. The final composite output index rose to 52 in May from 50.6 in April, data from Markit showed Wednesday. Initially, it was estimated to rise to 51.

British services sector expanded at the weakest pace in five months in May, as growth rates for output and new business worsened, survey results from Markit Economics revealed Wednesday. The seasonally adjusted Markit/CIPS UK Services Purchasing Managers' Index for the services sector, fell to 56.5 in May from 59.5 in April.

In commodities, crude oil futures for July delivery are down $0.40 or 0.65 percent at $60.86 a barrel.

Natural gas for July is down 0.046 or 1.70 at $2.652 per million btu.

Gold futures for August are down $4.50 or 0.38 percent at $1,189.90 an ounce.

Silver for July is down $0.244 or 1.45 percent at $16.555 an ounce.