Canadian Stocks Are Up On Rising Commodity Prices -- Canadian Commentary

(RTTNews) - The Canadian stock market is climbing in early trade Wednesday, extending its gains from the prior trading session. Gold, mining and energy stocks are leading the way higher this morning, thanks to rising commodity prices.

Markets in Europe are trading in the green Wednesday, on optimism for a solution to the Greek debt problem. Greek Prime Minister Alexis Tsipras will meet with German Chancellor Angela Merkel and French President François Hollande later today. Recent volatility in the European bond market appears to have eased slightly today, despite the fact that the yield on the German 10-year bond has risen back above 1 percent for the first time since September.

Markets in the United States are also positive this morning. Following the pull back of the previous few sessions, investors are taking part in some bargain hunting. Investors are looking forward to the release of the retail sales and weekly jobless claims reports on Thursday.

The benchmark S&P/TSX Composite Index is up 89.42 points or 0.60 percent at 14,907.13.

On Tuesday, the index closed up 80.29 points or 0.54 percent, at 14,823.62. The index scaled an intraday high of 14,840.12 and a low of 14,687.00.

The Energy Index is increasing by 1.43 percent. Crude oil prices rallied Wednesday amid further evidence that U.S. shale producers are scaling back production. API reported a huge 6.7 million barrel inventory draw for the last week. Official data from the Energy Information Department will be out this morning.

Crescent Point Energy (CPG.TO) is higher by 1.58 percent and Suncor Energy (SU.TO) is rising by 0.70 percent. Cenovus Energy (CVE.TO) is advancing by 2.15 percent and Encana (ECA.TO) is gaining 1.34 percent. Canadian Oil Sands (COS.TO) is increasing by 1.62 percent and Canadian Natural Resources (CNQ.TO) is adding 1.58 percent. Pacific Rubiales Energy (PRE.TO) is climbing by 2.69 percent and Enbridge (ENB.TO) is up 1.38 percent.

Inter Pipeline (IPL.TO) is gaining 1.48 percent, after it completed the acquisition of four petroleum and petrochemical storage terminals in Sweden from a subsidiary of Koninklijke Vopak N.V.

The Diversified Metal and Mining Index is climbing by 2.30 percent. First Quantum Minerals (FM.TO) is advancing by 3.75 percent and Capstone Mining (CS.TO) is gaining 3.20 percent. Teck Resources (TCK-A.TO) is increasing by 1.73 percent and Sherritt International (S.TO) is adding 2.54 percent. HudBay Minerals (HBM.TO) is rising by 3.90 percent and Lundin Mining (LUN.TO) is up 1.40 percent.

The Gold Index is rising by 0.55 percent. Gold prices edged higher Wednesday morning, moving further from a recent 11-week low thanks to safe haven appeal and a weaker dollar. Concerns about the global economy and weaker stocks are turning attention to gold as an alternative investment.

Goldcorp (G.TO) is increasing by 0.14 percent and Eldorado Gold (ELD.TO) is gaining 0.18 percent. B2Gold (BTO.TO) is advancing by 0.99 percent and Barrick Gold (ABX.TO) is higher by 0.70 percent. and Kinross Gold (K.TO) is rising by 1.13 percent and IAMGOLD (IMG.TO) is climbing by 2.53 percent.

The Capped Materials Index is also up 1.16 percent. Agnico Eagle Mines (AEM.TO) is rising by 1.39 percent and Franco-Nevada (FNV.TO) is adding 0.69 percent. Silver Wheaton (SLW.TO) is climbing by 1.01 percent and Agrium (AGU.TO) is up 0.58 percent. Potash Corp. of Saskatchewan (POT.TO) is also higher by 0.40 percent.

The heavyweight Financial Index is higher by 0.72 percent. Toronto-Dominion Bank (TD.TO) is rising by 0.57 percent and Canadian Imperial Bank of Commerce (CM.TO) is higher by 0.64 percent. Bank of Montreal (BMO.TO) is climbing by 0.55 percent and Bank of Nova Scotia (BNS.TO) is gaining 0.39 percent. National Bank of Canada (NA.TO) is up 0.35 percent and Royal Bank of Canada (RY.TO) is advancing by 0.50 percent.

The Capped Industrials Index is climbing by 0.46 percent. Air Canada (AC.TO) is higher by 1.29 percent and AutoCanada (ACQ.TO) is increasing by 2.98 percent. Canadian Pacific Railway (CP.TO) is rising by 0.82 percent and Finning International (FTT.TO) is up 0.32 percent. CAE (CAE.TO) is also gaining 1.26 percent.

The Capped Health Care Index is down 0.43 percent. Valeant Pharmaceuticals International (VRX.TO) is declining by 1.33 percent and Catamaran (CCT.TO) is lower by 0.67 percent.

The Capped Telecommunication Services Index is falling by 0.44 percent. BCE (BCE.TO) is lower by 0.11 percent and TELUS (T.TO) is losing 0.53 percent.

Hudson's Bay (HBC.TO) is rising by 0.96 percent. The company reported that first quarter retail sales were $2,072 million, an increase of 11.7 percent from the prior year.

Dollarama (DOL.TO) is gaining 3.13 percent, after its first quarter diluted net earnings per share rose 28.2 percent to $0.50.

Enerplus (ERF.TO) is surging by 6.85 percent, after it increased its 2015 capital budget by C$60 million from C$480 million to C$540 million.

Diversified Royalty (DIV.TO) is up 1.03 percent. The company has entered into an agreement with Sutton Group Realty Services Ltd. to acquire the Canadian and U.S. trademarks and certain other intellectual property rights utilized by Sutton in its business for $30.6 million.

Carmanah Technologies (CMH.TO) is climbing by 3.93 percent, after it agreed to acquire the Sabik Group of Companies.

On the economic front, French industrial and manufacturing output declined unexpectedly in April, the statistical office Insee revealed Wednesday. Industrial output dropped 0.9 percent from March when it remained flat. This was the first decline in five months. Economists had forecast production to grow 0.4 percent.

France's current account turned to a surplus in April, as a decline in imports of crude oil imports led to a narrowing in the visible trade deficit, the Bank of France said Wednesday. The current account showed a surplus of EUR 0.4 billion for April versus a deficit of EUR 1.4 billion for March. The merchandise trade deficit narrowed to EUR 1.1 billion from EUR 3.2 billion.

U.K. industrial production expanded in April on oil and gas extraction, while manufacturing output shrank due to the weakness in pharmaceutical products. Data from the Office for National Statistics showed that industrial output grew 0.4 percent month-on-month in April, better than the expected growth of 0.1 percent but weaker than March's 0.6 percent increase.

In commodities, crude oil futures for July delivery are up $1.14 or 1.90 percent at $61.28 a barrel.

Natural gas for July is up 0.023 or 0.81 at $2.869 per million btu.

Gold futures for August are up $10.70 or 0.91 percent at $1,188.30 an ounce.

Silver for July is up $0.073 or 0.46 percent at $16.03 an ounce.