Canadian Stocks Are Up Despite Disappointing GDP Data -- Canadian Commentary

(RTTNews) - The Canadian stock market is climbing in early trade Tuesday, despite the release of the weaker than anticipated Canadian GDP report. Mining, gold and energy stocks are leading the way higher this morning, despite the fact that commodity prices are struggling in early action. Investors will be keeping an eye out for developments from the OPEC meeting in Vienna and are awaiting the results of the U.S. jobs report for May at the end of the trading week.

Data from Statistics Canada showed that the GDP grew 2.4 percent on a seasonally adjusted annualized basis, slower than the expected 2.8 percent increase. Nonetheless, it was higher than the previous quarter's 0.8 percent gain.

On month, the economy shrank by 0.2 percent, sharper than February's 0.1 percent decline. Economists had been expecting the GDP to match the February's estimate.

Markets in Europe are turning in a mixed performance Tuesday. The markets are holding close to the flat line after Eurozone consumer inflation and unemployment figures showed the region is still mired in deflation with a stagnant jobless rate.

Markets in the United States are basically flat in early trade Tuesday, after returning to action following the Memorial Day holiday. Traders appear hesitant to take positions ahead of the release of the closely watched monthly employment report on Friday.

The benchmark S&P/TSX Composite Index is up 75.41 points or 0.54 percent at 14,162.08.

On Monday, the index closed down 18.56 points or 0.13 percent, at 14,086.67. The index scaled an intraday high of 14,123.97 and a low of 14,068.85.

The Diversified Metal and Mining Index is advancing 2.93 percent. Teck Resources (TCK-B.TO) is gaining 3.70 percent and First Quantum Minerals (FM.TO) is rising 3.41 percent. HudBay Minerals (HBM.TO) is increasing 2.95 percent and Lundin Mining (LUN.TO) is climbing 2.58 percent. Capstone Mining (CS.TO) is also higher by 1.52 percent.

Sherritt International (S.TO) is up 7.04 percent. The company announced that it has entered into consent and support agreements to extend the maturities on all outstanding notes.

The Gold Index is climbing 2.48 percent. Gold prices continue to fall Tuesday morning despite a slightly weaker dollar. Investors are in a cautious mood ahead of Friday's all-important U.S. jobs report.

Yamana Gold (YRI.TO) is increasing 4.69 percent and Barrick Gold (ABX.TO) is rising 3.16 percent. Eldorado Gold (ELD.TO) is gaining 3.30 percent and IAMGOLD (IMG.TO) is climbing 4.90 percent. Kinross Gold (K.TO) is advancing 4.16 percent and Royal Gold (RGL.TO) is up 2.60 percent. B2Gold (BTO.TO) is surging 6.09 percent and Goldcorp (G.TO) is adding 2.77 percent.

The Capped Materials Index is up 2.35 percent. Agnico Eagle Mines (AEM.TO) is increasing 2.59 percent and Franco-Nevada (FNV.TO) is adding 2.84 percent. Silver Wheaton (SLW.TO) is advancing 3.17 percent and Agrium (AGU.TO) is rising 0.45 percent.

The Energy Index is up 1.48 percent. Crude oil prices are $50 a barrel Tuesday morning as OPEC prepares for a pivotal meeting in Vienna.

Crescent Point Energy (CPG.TO) is gaining 1.41 percent and Cenovus Energy (CVE.TO) is rising 0.70 percent. Canadian Natural Resources (CNQ.TO) is climbing 1.87 percent and Encana (ECA.TO) is higher by 3.52 percent. Suncor Energy (SU.TO) is increasing 1.00 percent and Enbridge (ENB.TO) is adding 1.09 percent. Imperial Oil (IMO.TO) is advancing 0.36 percent.

The Capped Information Technology Index is rising 0.48 percent. Sierra Wireless (SW.TO) is gaining 0.82 percent and Constellation Software (CSU.TO) is up 0.82 percent. Descartes Systems Group (DSG.TO) is increasing 0.74 percent and BlackBerry (BB.TO) is climbing 0.53 percent. Avigilon (AVO.TO) is also advancing 2.21 percent.

The Capped Industrials Index is gaining 0.18 percent. Canadian National Railway (CNR.TO) is higher by 0.26 percent and Canadian Pacific Railway (CP.TO) is increasing 0.33 percent. AutoCanada (ACQ.TO) is advancing 2.24 percent and Finning International (FTT.TO) is adding 1.16 percent.

The heavyweight Financial Index is increasing 0.03 percent. Toronto-Dominion Bank (TD.TO) is gaining 0.05 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.08 percent.

Bank of Nova Scotia (BNS.TO) is weakening by 0.37 percent. The company's second quarter profit fell 12% from a year earlier due to a restructuring charge. The bank also had to set aside more cash for bad energy loans.

However, stripping out charges, Scotiabank said profit was C$1.48 a share, beating market estimates.

The Capped Healthcare Index is losing 1.82 percent. Concordia Healthcare (CXR.TO) is weakening by 4.46 percent and Valeant Pharmaceuticals International (VRX.TO) is falling 1.85 percent.

The Capped Telecommunication Services Index is down 0.25 percent. TELUS (T.TO) is losing 0.43 percent and Rogers Communication (RCI-B.TO) is dipping 0.08 percent. Manitoba Telecom Services (MBT.TO) is lower by 0.26 percent and BCE (BCE.TO) is falling 0.23 percent.

On the economic front, Eurozone consumer prices declined for the second straight month in May, despite several measures taken by the European Central Bank policymakers to lift prices to positive territory. Consumer prices dropped 0.1 percent from a year ago, as economists had expected, after easing 0.2 percent in April, the flash estimate published by Eurostat showed Tuesday.

Eurozone's jobless rate remained stable in April at the lowest level in more than four years, while the German figure slipped to a new low since the reunification, in May.

Data from the Eurostat showed that the unemployment rate came in at 10.2 percent in April, in line with expectations and the same rate as seen in March. This was the lowest rate recorded in the euro area since August 2011.

Germany's retail sales dropped unexpectedly in April, figures from Destatis revealed Tuesday. Retail turnover decreased 0.9 percent in April from March, confounding expectations for a 0.9 percent rise. This was the second consecutive drop in sales.

Germany's unemployment declined more than expected in May, the Federal Labor Agency reportedly said Tuesday. The number of people out of work decreased by 11,000 to 2.695 million in May. Economists had forecast a fall of 5,000.

Germany's unemployment rate held steady in April, after falling slightly in the previous month, preliminary figures from Destatis showed Tuesday. The adjusted jobless rate came in at 4.2 percent in April, the same rate as in the previous month. In the corresponding month last year, the unemployment rate was 4.7 percent.

French consumer prices continued to decline in May, the provisional estimate published by the statistical office Insee showed Tuesday. Consumer prices decreased 0.1 percent year-on-year in May, in line with expectations, but slower than the 0.2 percent drop seen in April. Prices have been falling since February.

Personal spending in the U.S. increased by more than expected in the month of April, according to a report released by the Commerce Department on Tuesday.

The Commerce Department said personal spending jumped by 1.0 percent in April after coming in unchanged in March. Economists had expected spending to climb by 0.7 percent.

The report also said personal income rose by 0.4 percent in April, matching the increase seen in the previous month as well as economist estimates.

In commodities, crude oil futures for June delivery are up 0.49 or 0.99 percent at $49.82 a barrel.

Natural gas for June is up 0.086 or 3.96 percent at $2.255 per million btu.

Gold futures for June are down $1.00 or 0.08 percent at $1,215.70 an ounce.

Silver for July is down $0.194 or 1.19 percent at $16.075 an ounce.