Canadian Stocks Are Attempting To Rebound -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising in early trade Wednesday, as it attempts to bounce back from two days of heavy losses. The market dropped to its lowest level in over 2 years yesterday. A rebound in commodity prices and bargain hunting after the recent sell-off is providing a boost to the market this morning. Crude oil prices are rising after the U.S. reported a drop in inventories.

Markets in Europe are turning in a mixed performance Wednesday. The markets reached a 2-month low yesterday, but positive data out of Japan and China has helped to ease global growth concerns.

Markets in the United States are rising this morning. Traders may be hesitant to take positions ahead of several important economic reports in the next few days. Investors are also looking forward to the Federal Reserve meeting next week, where an interest rate hike is expected to be announced.

Reflecting decreases in inventories of both durable and non-durable goods, the Commerce Department released a report on Wednesday showing an unexpected drop in U.S. wholesale inventories in the month of October.

The Commerce Department said wholesale inventories edged down by 0.1 percent in October after rising by a downwardly revised 0.2 percent in September. Economists had expected inventories to rise by 0.2 percent compared to the 0.5 percent increase originally reported for the previous month.

The benchmark S&P/TSX Composite Index is up 183.54 points or 1.42 percent at 13,106.01.

On Tuesday, the index closed down 120.36 points or 0.92 percent, at 12,922.47. The index scaled an intraday high of 13,007.69 and a low of 12,872.33.

The Diversified Metal and Mining Index is advancing 4.58 percent. HudBay Minerals (HBM.TO) is climbing 4.22 percent and First Quantum Minerals (FM.TO) is rising 7.95 percent. Lundin Mining (LUN.TO) is gaining 2.28 percent and Capstone Mining (CS.TO) is increasing 3.13 percent.

The Energy Index is increasing 2.31 percent. The U.S. Energy Information Administration reported this morning that crude inventories dropped 3.6 million barrels last week. This was the first draw down in inventories in almost 3 months.

Crescent Point Energy (CPG.TO) is higher by 3.87 percent and Cenovus Energy (CVE.TO) is advancing 2.20 percent. Imperial Oil (IMO.TO) is rising 2.69 percent and Suncor Energy (SU.TO) is up 2.37 percent. Enbridge (ENB.TO) is gaining 4.40 percent and Canadian Oil Sands (COS.TO) is increasing 3.68 percent.

Encana (ECA.TO) is climbing 3.61 percent and Canadian Natural Resources (CNQ.TO) is adding 3.28 percent. Pacific Exploration & Production (PRE.TO) is rising 5.43 percent and Husky Energy (HSE.TO) is up 0.19 percent.

The Gold Index is rising 1.79 percent. Gold prices are attempting to rebound from a recent 5-year low.

Goldcorp (G.TO) is increasing 1.84 percent and Yamana Gold (YRI.TO) is gaining 2.46 percent. Barrick Gold (ABX.TO) is advancing 3.37 percent and Eldorado Gold (ELD.TO) is rising 2.44 percent. Kinross Gold (K.TO) is up 1.53 percent and IAMGOLD (IMG.TO) is climbing 1.50 percent. B2Gold (BTO.TO) is higher by 1.23 percent.

The Capped Materials Index is also up 1.74 percent. Silver Wheaton (SLW.TO) is increasing 2.40 percent and Agrium (AGU.TO) is higher by 0.20 percent. Potash Corp. of Saskatchewan (POT.TO) is also gaining 2.10 percent.

The heavyweight Financial Index is rising 1.62 percent. Royal Bank of Canada (RY.TO) is gaining 1.40 percent and National Bank of Canada (NA.TO) is advancing 1.07 percent. Bank of Montreal (BMO.TO) is higher by 1.53 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 1.75 percent. Bank of Nova Scotia (BNS.TO) is increasing 1.55 percent.

Toronto-Dominion Bank (TD.TO) is up 2.30 percent. The company's previously announced repurchase for cancellation of up to 9.5 million of its common shares has received approval from the TSX and the Office of the Superintendent of Financial Institutions Canada.

The Capped Industrials Index is higher by 1.13 percent. Finning International (FTT.TO) is rising 0.45 percent and Air Canada (AC.TO) is up 2.56 percent. Canadian National Railway (CNR.TO) is climbing 1.58 percent and Canadian Pacific Railway (CP.TO) is gaining 1.81 percent.

The Capped Information Technology Index is up 0.11 percent. Sierra Wireless (SW.TO) is advancing 2.44 percent and Avigilon (AVO.TO) is rising 3.05 percent. Constellation Software (CSU.TO) is adding 1.56 percent.

The Capped Health Care Index is up 0.09 percent. Valeant Pharmaceuticals International is rising 1.32 percent and Concordia Healthcare (CXR.TO) is higher by 2.23 percent.

The Capped Telecommunication Services Index is falling 0.26 percent. Manitoba Telecom Services (MBT.TO) is lower by 0.82 percent.

Dollarama (DOL.TO) reported third quarter earnings rose 41.8% on a big sales increase. The stock is now up 1.66 percent.

Laurentian Bank Of Canada (LB.TO) raised its dividend by two cents to C$0.58 per share. The stock is declining 3.53 percent.

On the economic front, Chinese inflation rose more than expected in November suggesting that measures taken to boost economic growth is beginning to spur domestic demand.

Consumer prices rose 1.5 percent year-on-year in November, faster than the 1.3 percent growth seen in October, as both food and non-food price inflation picked up, the National Bureau of Statistics said Wednesday.

Inflation also exceeded the expected rate of 1.4 percent. Despite the acceleration, overall inflation remains well below the government's full year target of around 3 percent.

Another report from the NBS showed that producer prices decreased for 45 consecutive months in November. The producer price index slid 5.9 percent annually, the same rate of decline as seen in October. Economists had forecast a 6 percent fall for November.

Germany's exports declined more-than-expected in October and imports logged its biggest fall since 2012, reflecting a weak start to the fourth quarter.

Exports fell 1.2 percent in October from September, when they advanced 2.6 percent, figures from Destatis revealed Wednesday. Shipments were expected to fall 0.6 percent.

Likewise, imports declined 3.4 percent in contrast to September's 3.8 percent increase. This was the biggest fall since April 2012, when shipments slid 3.5 percent. Economists had forecast a 1 percent drop for October.

As imports dropped more than exports, the trade surplus rose to a seasonally adjusted EUR 20.8 billion in October from about EUR 19.2 billion a month ago.

Germany's labor costs growth moderated in the three months ended September, after remaining stable in the previous quarter, data from Destatis showed Wednesday. Labor costs per hour worked consisting of gross earnings and non-wage costs grew a calendar-adjusted 2.4 percent in the third quarter, but slower than the 3.0 percent steady rate of increase in the second quarter, which was revised down from 3.1 percent.

In commodities, crude oil futures for January delivery are up $0.81 or 2.16 percent at $38.32 a barrel.

Natural gas for January is up 0.024 or 1.16 percent at $2.094 per million btu.

Gold futures for February are up $4.90 or 0.46 percent at $1,080.20 an ounce.

Silver for March is up $0.169 or 1.20 percent at $14.285 an ounce.