The Canadian stock market got off to a positive start Friday, but has since eased back slightly from its early highs. The majority of the Canadian sectors are trading in the green this morning, with strength among healthcare, information technology and industrial stocks.
The relatively lackluster opening on Wall Street and the release of some unimpressive Canadian economic data seems to be weighing on Bay Street in early trade. Canadian retail sales unexpectedly declined and inflation slowed.
Markets in Europe got off to a positive start Friday, but are now clinging to small gains as early strength has faded. The markets received an early boost from some strong corporate earnings results and hopes for U.S. tax reform.
Markets on Wall Street opened slightly higher Friday, but have since moved in a sideways pattern. The Senate has voted in favor of the Republican tax reform plan, with a final tally of 51 to 47. Investors are also looking forward to a lecture from Federal Reserve Chair Janet Yellen after the close of trade.
The benchmark S&P/TSX Composite Index is up 58.21 points or 0.37 percent at 15,876.21.
On Thursday, the index closed up 35.84 points or 0.23 percent, at 15,818.00. The index scaled an intraday high of 15,824.14 and a low of 15,754.14.
The Capped Information Technology Index is gaining 0.87 percent. BlackBerry (BB.TO) is rising 0.61 percent and Sierra Wireless (SW.TO) is increasing 1.47 percent. Constellation Software (CSU.TO) is up 0.38 percent and Descartes Systems Group (DSG.TO) is advancing 1.22 percent.
The Capped Healthcare Index is higher by 0.83 percent. Extendicare (EXE.TO) is gaining 0.22 percent.
The Capped Industrials Index is up 0.86 percent. Canadian National Railway (CNR.TO) is climbing 0.79 percent and Canadian Pacific Railway (CP.TO) is increasing 2.03 percent. WestJet Airlines (WJA.TO) is rising 0.58 percent Air Canada (AC.TO) is adding 0.07 percent. Bombardier (BBD-B.TO) is higher by 1.80 percent.
The Capped Materials Index is up 0.76 percent. Agrium (AGU.TO) is increasing 0.42 percent and Potash Corp. of Saskatchewan (POT.TO) is gaining 0.67 percent. Agnico Eagle Mines (AEM.TO) is rising 0.22 percent and Franco-Nevada (FNV.TO) is advancing 1.18 percent.
The Gold Index is increasing 0.62 percent. Gold prices are lower Thursday morning as equities continue to rise.
Goldcorp (G.TO) is up 0.12 percent and IAMGOLD (IMG.TO) is rising 1.11 percent. Yamana Gold (YRI.TO) is higher by 0.59 percent and Barrick Gold (ABX.TO) is gaining 0.80 percent.
The heavyweight Financial Index is increasing 0.47 percent. Bank of Montreal (BMO.TO) is up 0.66 percent and Royal Bank of Canada (RY.TO) is climbing 0.59 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.46 percent and Toronto-Dominion Bank (TD.TO) is higher by 0.15 percent. National Bank of Canada (NA.TO) is rising 0.15 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.22 percent.
The Capped Telecommunication Services Index is up 0.28 percent. TELUS (T.TO) is increasing 0.09 percent and Rogers Communications (RCI-B.TO) is rising 0.73 percent.
The Energy Index is rising 0.08 percent. Crude oil prices are up slightly Friday morning, after recovering from early weakness.
Encana (ECA.TO) is up 0.21 percent and Canadian Natural Resources (CNQ.TO) is rising 0.46 percent. Suncor Energy (SU.TO) is advancing 0.48 percent and Husky Energy (HSE.TO) is adding 0.32 percent.
On the economic front, data from Statistics Canada showed that inflation slowed to 0.2 percent on a seasonally adjusted monthly basis in September. Economists had expected the inflation to grow by 0.3 percent, following a 0.2 percent rise in August.
Separate data from the same agency showed that Canadian retail sales declined 0.3 percent in August to $48.9 billion in September. Economists were calling for an increase of 0.5 percent. This follows a 0.4 percent rise in July.
Core retail sales fell 0.7 percent month-on-month, after a 0.2 percent gain in August. The figure has been expected to rise by 0.3 percent.
The euro area current account surplus rose to the highest level in more than a year in August, the European Central Bank said Friday. The current account surplus rose to EUR 33.3 billion in August from EUR 31.5 billion in July. This was the highest since May 2016.
Germany's producer prices increased at the fastest pace in five months in September, data from Destatis showed Friday.
Producer price inflation rose more-than-expected to 3.1 percent in September from 2.6 percent in August. This was the fastest increase since April, when prices advanced 3.4 percent. Economists had forecast a 2.9 percent rise for September.
The UK budget posted the smallest budget deficit in a decade for the month of September, suggesting that the borrowing is on the course to undershoot the full-year target. Public sector net borrowing, excluding banks, decreased by GBP 0.7 billion from the previous year to GBP 5.9 billion in September, the Office for National Statistics said Friday.
This was the lowest September net borrowing since 2007 and also below the expected level of GBP 6.5 billion.
After reporting U.S. existing home sales at their lowest level in a year in the previous month, the National Association of Realtors released a report on Friday showing an unexpected rebound in existing home sales in the month of September.
NAR said existing home sales climbed by 0.7 percent to an annual rate of 5.39 million in September from a rate of 5.35 million in August. Economists had expected existing home sales to see further downside and drop to a rate of 5.30 million.
In commodities, crude oil futures for November delivery are up 0.10 or 0.19 percent at $51.39 a barrel.
Natural gas for November is down 0.003 or 0.10 percent at $2.87 per million btu.
Gold futures for December are down 6.70 or 0.52 percent at $1,283.30 an ounce.
Silver for December is down 0.055 or 0.32 percent at $17.20 an ounce.
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