Canadian Stocks Are Fluctuating In Early Trade -- Canadian Commentary

(RTTNews) - The Canadian stock market is trading slightly to the upside Thursday morning. The market has been bouncing back and forth between modest gains and modest losses since the open of trade. Weakness in mining and healthcare stocks is limiting the market's upside.

Markets in Europe are turning in a mixed performance Thursday. Economic data from Germany continues to come in weaker than expected this week, raising concerns over global demand. Germany's exports declined the most in over six years in August.

Meanwhile, the Bank of England decided to maintain its key interest rate unchanged at a record low in a split vote as Ian McCafferty went against majority for the third straight meeting. The majority of members judged that the current stance of monetary policy remained appropriate, while McCafferty preferred a quarter-point hike.

Markets in the United States are trading modestly to the downside this morning. Traders are looking ahead to the release of the minutes of the Federal Reserve's latest monetary policy meeting this afternoon. The minutes could shed some light on the outlook for interest rates after the Fed's decision to leave rates unchanged following the meeting.

After reporting modest increases in first-time claims for U.S. unemployment benefits in the two previous weeks, the Labor Department released a report on Thursday showing that initial jobless claims pulled back by more than expected in the week ended October 3rd.

The report said initial jobless claims fell to 263,000, a decrease of 13,000 from the previous week's revised level of 276,000. Economists had expected jobless claims to dip to 271,000 from the 277,000 originally reported for the previous week.

The benchmark S&P/TSX Composite Index is up 8.21 points or 0.06 percent at 13,876.56.

On Wednesday, the index closed up 221.09 points or 1.62 percent, at 13,868.35. The index scaled an intraday high of 13,873.84 and a low of 13,735.38.

The Diversified Metal and Mining Index is falling 2.16 percent. HudBay Minerals (HBM.TO) is losing 2.33 percent and Lundin Mining (LUN.TO) is declining 2.37 percent. Capstone Mining (CS.TO) is dipping 1.64 percent and First Quantum Minerals (FM.TO) is decreasing 7.68 percent.

The Capped Health Care Index is declining 2.05 percent. Extendicare (EXE.TO) is losing 0.97 percent and Valeant Pharmaceuticals International (VRX.TO) is down 1.21 percent. Concordia Healthcare (CXR.TO) is sinking 6.56 percent.

The Capped Materials Index is down 0.64 percent. Agnico Eagle Mines is lower by 0.53 percent and Silver Wheaton is declining 1.96 percent. Potash Corp. of Saskatchewan (POT.TO) is tumbling 1.59 percent.

The Energy Index is decreasing 0.22 percent. Crude oil prices rose Thursday morning, moving back near $50 a barrel amid geopolitical tensions.

Talks between Iran and the West have broken down, so it is unlikely that sanctions on Tehran oil will be fully lifted anytime soon.

Meanwhile, Russia has stepped up its attacks on Syrian rebels against the wishes of the U.S. and others, raising fears of a wider conflict in the region.

Canadian Natural Resources (CNQ.TO) is declining 0.77 percent and Pacific Exploration & Production (PRE.TO) is losing 3.27 percent. Crescent Point Energy (CPG.TO) is down 0.81 percent and Cenovus Energy (CVE.TO) is losing 0.69 percent.

Encana (ECA.TO) is rising 0.18 percent. The company has agreed to sell its Denver Julesburg Basin assets in Colorado to Canada Pension Plan Investment Board entity for around $900 million.

The Capped Telecommunication Services Index is higher by 0.85 percent. TELUS (T.TO) is increasing by 0.57percent and BCE (BCE.TO) is gaining 0.43 percent. Manitoba Telecom Services (MBT.TO) is rising 1.72 percent.

Sandvine (SVC.TO) is climbing 0.82 percent. The company reported third quarter EPS of $0.019, compared to $0.020 last year.

The Capped Information Technology Index is gaining 0.50 percent. BlackBerry (BB.TO) is climbing 1.07 percent and Sierra Wireless (SW.TO) is increasing 1.88 percent.

The Capped Industrials Index is up 0.42 percent. Canadian Pacific Railway (CP.TO) is rising 0.77 percent and Canadian National Railway (CNR.TO) is up 1.02 percent. Finning International (FTT.TO) is gaining 1.14 percent and Bombardier (BBD-A.TO) is higher by 0.64 percent. Air Canada (AC.TO) is also climbing 1.00 percent.

The heavyweight Financial Index is rising 0.29 percent. Bank of Nova Scotia (BNS.TO) is higher by 0.15percent and Bank of Montreal (BMO.TO) is gaining 0.53 percent.

Royal Bank of Canada (RY.TO) is advancing 0.49 percent. The company announced that it has received U.S. regulatory approval for its acquisition of City National Corp.

The Gold Index is increasing by 0.18 percent. Gold prices were slightly lower Thursday morning, trimming recent gains ahead of the minutes from September's Federal Reserve meeting.

Kinross Gold (K.TO) is gaining 1.07 percent and Yamana Gold (YRI.TO) is climbing 2.75 percent.

IAMGOLD (IMG.TO) is decreasing 2.73 percent. The company has started a process to reduce by 10 percent the number of employees at its Rosebel Gold Mines in Suriname.

TransCanada Corp. (TRP.TO) is losing 1.39 percent. The company is paying $654 million for a natural gas-fired plant in Pennsylvania.

Yellow Pages (Y.TO) is down 0.97 percent, after it announced a corporate realignment to support its ongoing digital transformation and growth into Canada's leading digital company. The Company will shed approximately 300 positions across Canada.

On the economic front, Statistics Canada reported Thursday morning that the Canadian new housing price index rose 0.3 percent in August. Economists had expected an increase of 0.2 percent.

Germany's exports declined most in more than six years in August, suggesting that a slowdown in emerging economies, especially China hurts global demand.

Exports plunged a seasonally adjusted 5.2 percent month-on-month in August, reversing a 2.2 percent rise in July, data from Destatis revealed Thursday. This was the biggest decline since January 2009, when it slid 6.9 percent.

At the same time, imports dropped 3.1 percent, in contrast to a 2.3 percent rise seen a month ago.

British house price growth slowed unexpectedly in September, latest survey from the Royal Institution of Chartered Surveyors showed on Thursday. The survey showed that monthly house price balance fell to +44 in September from +53 in August, which was the highest in more than a year. Economists had expected the balance to rise again to +55.

In commodities, crude oil futures for November delivery are up $0.59 or 1.23 percent at $48.40 a barrel.

Natural gas for November is up 0.02 or 0.81 percent at $2.494 per million btu

Gold futures for December are down $4.00 or 0.35 percent at $1,144.70 an ounce.

Silver for December is down $0.389 or 2.42 percent at $15.705 an ounce.