Canadian Stocks Are Up As Commodity Prices Rise -- Canadian Commentary

(RTTNews) - The Canadian stock market is modestly higher in early trade Tuesday, extending its gains from the previous session. Global markets are largely under pressure Tuesday, due to ongoing concerns over Greece. Mining and gold stocks are among the best performers in Canada, as commodity prices rise in early trade.

The majority of the European markets are trading in the red Tuesday. Greece is approaching its debt-repayment deadline of June 5 an it is unclear whether the debt-laden country will take the emergency option of 'bundling' repayments till the end of the month. Eurozone consumer prices also increased for the first time in six months in May.

Markets in the United States are also under pressure this morning. U.S. factory orders fell by more than expected this morning. Investors appear reluctant to make any significant moves ahead of a large number of economic reports later this week, including the employment report for May on Friday.

After reporting a sharp jump in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Tuesday showing that factory orders fell by more than expected in the month of April.

The report said factory orders fell by 0.4 percent in April after soaring by an upwardly revised 2.2 percent in March. Economists had expected orders to edge down by 0.1 percent compared to the 2.1 percent jump originally reported for the previous month.

The benchmark S&P/TSX Composite Index is up 55.50 points or 0.37 percent at 15,129.63.

On Monday, the index closed up 60.04 points or 0.40 percent, at 15,074.13. The index scaled an intraday high of 15,078.58 and a low of 14,982.35.

The Gold Index is rising by 1.02 percent. Gold prices remained locked in a stubborn range near $1190 an ounce Tuesday morning, even as the dollar weakened versus major rivals.

B2Gold (BTO.TO) is climbing by 0.93 percent and Goldcorp (G.TO) is advancing by 1.40 percent. IAMGOLD (IMG.TO) is up 0.39 percent and Kinross Gold (K.TO) is increasing by 1.35 percent. Royal Gold (RGL.TO) is higher by 0.19 percent and Eldorado Gold (ELD.TO) is adding 0.33 percent. Barrick Gold (ABX.TO) is also gaining 2.16 percent.

The Capped Materials Index is also up 1.48 percent. Franco-Nevada (FNV.TO) is gaining 1.19 percent and Agnico Eagle Mines (AEM.TO) is adding 1.49 percent. Silver Wheaton (SLW.TO) is increasing by 1.46 percent and Pan American Silver (PAA.TO) is rising by 1.28 percent. Potash Corp. of Saskatchewan (POT.TO) is climbing by 0.41 percent and Agrium (AGU.TO) is higher by 0.33 percent.

The Diversified Metal and Mining Index is surging by 4.04 percent. HudBay Mineral (HBM.TO) is higher by 5.47 percent and Capstone Mining (CS.TO) is gaining 4.84 percent. First Quantum Minerals (FM.TO) is advancing by 6.20 percent and Lundin Mining (LUN.TO) is rising by 1.95 percent. Sherritt International (S.TO) is up 3.36 percent and Teck Resources (TCK-A.TO) is climbing by 3.79 percent.

The Energy Index is increasing by 0.60 percent. Crude oil prices climbed Tuesday morning, extending gains from the previous session, as OPEC ministers bragged that they are winning their price war with non-OPEC rivals.

Saudi oil minister Ali al-Naimi, speaking ahead of this week's OPEC meeting in Vienna, said his cartel was happy that demand is picking up with supplies were slowing. He was presumably referring to cuts in production from non-OPEC suppliers like the U.S. shale industry.

Encana (ECA.TO) is rising by 0.52 percent and Crescent Point Energy (CPG.TO) is higher by 1.00 percent. Pacific Rubiales Energy (PRE.TO) is gaining 1.02 percent and Canadian Natural Resources (CNQ.TO) is up 0.79 percent. Suncor Energy (SU.TO) is advancing by 0.36 percent and Cenovus Energy (CVE.TO) is adding 0.97 percent.

The heavyweight Financial Index is higher by 0.49 percent. Toronto-Dominion Bank (TD.TO) is rising by 0.74 percent and Royal Bank of Canada (RY.TO) is gaining 0.49 percent. Canadian Imperial Bank of Commerce (CM.TO) is higher by 0.13 percent and Bank of Montreal (BMO.TO) is climbing by 0.59 percent. Bank of Nova Scotia (BNS.TO) is rising by 0.23 percent and National Bank of Canada (NA.TO) is advancing by 0.86 percent.

The Capped Telecommunication Services Index is climbing by 0.43 percent. BCE (BCE.TO) is higher by 0.16 percent and TELUS (T.TO) is gaining 0.07 percent.

Constellation Software (CSU.TO) is up 0.23 percent, after it acquired the business of Megabus Pty Ltd.

The Capped Industrials Index is advancing by 0.40 percent. Canadian Pacific Railway (CP.TO) is climbing by 0.28 percent and Finning International (FTT.TO) is rising by 2.25 percent. Bombardier (BBD-A.TO) is gaining 0.78 percent.

Air Canada (AC.TO) is higher by 3.45 percent. The company announced that it its targeting full year EBITDAR margin of 15 to 18 percent.

The Capped Health Care Index is down 0.31 percent. Valeant Pharmaceuticals International (VRX.TO) is declining by 1.46 percent and Catamaran (CCT.TO) is losing 0.67 percent.

Wi-Lan (WIN.TO) is surging by 13.16 percent, after its subsidiary, Polaris Innovations Limited acquired the vast majority of Qimonda AG's patent portfolio from Infineon Technologies.

Altus Group (AIF.TO) is down 0.37 percent, after it agreed to acquire Maxwell Brown Surveyors Ltd.

Electrovaya (EFL.TO) is gaining 12.66 percent, after it received an order for SEPARION from a leading Chinese Battery company.

On the economic front, Eurozone consumer prices increased for the first time in six months in May vindicating that the measures taken by the central bank are helping the economy to move out of deflation. The harmonized index of consumer prices rose 0.3 percent year-on-year in May after staying flat in April, flash data from Eurostat showed Tuesday. Final data is due on May 19.

This was the first annual increase since last November and also the fastest since October 2014, when prices rose 0.4 percent. Economists had forecast a 0.2 percent increase for May.

Eurozone producer prices continued to decline in April, but the pace was the slowest in five months, yet faster than economists' expected, figures from Eurostat showed Tuesday. The producer price index fell 2.2 percent year-over-year in April, slower than previous month's 2.3 percent decrease. Economists had forecast a 2 percent fall for the month.

Germany's unemployment rate held steady in April, figures from Destatis showed Tuesday. The jobless rate came in at an adjusted 4.7 percent in April, the same rate as in the previous month. In the same month of the previous year, the rate was 5.0 percent.

German unemployment declined less than expected in May, the Federal Labor Agency reportedly said Tuesday. The number of people out of work declined by seasonally adjusted 6,000 in May. It was forecast to fall by 10,000. The jobless rate came in at a record low 6.4 percent, the same rate as seen in April.

British construction expansion quickened more-than-expected in May, underpinned by a post-election bounce in new orders, survey figures from Markit Economics showed Tuesday. The Markit/CIPS UK Construction Purchasing Managers' Index, rose to 55.9 in May from 54.2 in the previous month. Economists had expected the index to rise to 55.0.

U.K. mortgage approvals increased to a 14-month high in April, the Bank of England said Tuesday. The number of mortgages approved for house purchases rose more-than-expected to 68,076 in April from 61,945 in March. This was the highest level since February 2014. It was forecast increase to 63,500.

In commodities, crude oil futures for July delivery are up $0.26 or 0.43 percent at $60.46 a barrel.

Natural gas for July is down 0.04 or 1.51 at $2.609 per million btu.

Gold futures for August are up $4.60 or 0.39 percent at $1,193.30 an ounce.

Silver for July is up $0.075 or 0.45 percent at $16.755 an ounce.