Canadian Stocks Are Back Near Unchanged After Weak Start -- Canadian Commentary

(RTTNews) - The Canadian stock market got off to a weak start Wednesday morning, but climbed into positive territory ahead of the U.S. EIA report. Trading action has fluctuated between small gains and losses after the report showed an unexpected build in U.S. crude inventories.

Gold and mining stocks are turning in a weak performance this morning. Gold prices are retreating after hitting a 2-year high during yesterday's session. However, gains in healthcare and energy stocks are helping to offset the weakness in gold and mining stocks.

Markets in Europe are turning in a mixed performance Wednesday in choppy trade. Global growth concerns and the continued weakness in crude oil prices has offset the better than expected financial results reported by a number of European banks today. Investors are also in a cautious mood ahead of tomorrow's announcement from the Bank of England.

Markets in the United States are hovering around the flat-line in early trade Wednesday. Investors were disappointed with the recent stimulus plans announced by the Bank of Japan. Traders are looking forward to the release of the U.S. jobs report for July on Friday.

The benchmark S&P/TSX Composite Index is up 4.69 points or 0.03 percent at 14,481.70.

On Tuesday, the index closed down 105.73 points or 0.73 percent, at 14,477.01. The index scaled an intraday high of 14,559.45 and a low of 14,428.23.

The Diversified Metal and Mining Index is declining 2.30 percent. Teck Resources (TCK-B.TO) is losing 0.40 percent and HudBay Minerals (HBM.TO) is surrendering 3.48 percent. First Quantum Minerals (FM.TO) is decreasing 2.22 percent and Lundin Mining (LUN.TO) is lower by 2 percent. Capstone Mining (CS.TO) is falling 1.16 percent.

The Gold Index is lower by 1.84 percent. Gold prices have dipped this morning, after closing at their highest level in two years yesterday.

IAMGOLD (IMG.TO) is falling 2.45 percent and B2Gold (BTO.TO) is down 2.36 percent. Barrick Gold Corp (ABX.TO) is weakening by 2.19 percent and Kinross (K.TO) is declining 2.07 percent. Goldcorp (G.TO) is lower by 1.01 percent and Eldorado Gold (ELD.TO) is losing 1.85 percent. Yamana Gold (YRI.TO) is forfeiting 2.61 percent.

The Capped Materials Index is also down 1.55 percent. Franco-Nevada (FNV.TO) is losing 2.17 percent and Agnico Eagle Mines (AEM.TO) is falling 1.18 percent. Silver Wheaton (SLW.TO) is decreasing 1.70 percent.

The Capped Telecommunication Services Index is down 0.16 percent. Rogers Communication (RCI-B.TO) is falling 0.35 percent and Manitoba Telecom Services (MBT.TO) is lower by 0.13 percent. BCE (BCE.TO) is declining 0.16 percent and TELUS (T.TO) is losing 0.05 percent.

The Capped Information Technology Index is slipping 0.09 percent. BlackBerry (BB.TO) is falling 0.30 percent and Constellation Software (CSU.TO) is down 0.35 percent. Descartes Systems Group (DSG.TO) is declining 0.87 percent and Avigilon (AVO.TO) is surrendering 0.84 percent.

The Capped Healthcare Index is gaining 1.02 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 1.73 percent and Concordia Healthcare (CXR.TO) is climbing 3.58 percent.

The Energy Index is up 0.73 percent. Crude oil prices are holding near $40 a barrel this morning.

The U.S. EIA reported this morning that U.S. crude inventories unexpectedly increased by 1.4 million barrels last week.

Canadian Natural Resources (CNQ.TO) is rising 0.31 percent and Crescent Point Energy (CPG.TO) is gaining 2.02 percent. Encana (ECA.TO) is climbing 1.27 percent and Suncor Energy (SU.TO) is up 0.23 percent. Cenovus Energy (CVE.TO) is advancing 1.23 percent and Imperial Oil (IMO.TO) adding 0.77 percent.

Husky Energy (HSE.TO) higher by 5.73 percent. The company's Chinese subsidiary has agreed with CNOOC Limited for the price adjustment of natural gas from Liwan fields.

Enbridge Inc. (ENB.TO) falling 0.38 percent. Enbridge and Marathon Petroleum will buy a Bakken pipeline stake for $2-billion.

The heavyweight Financial Index is increasing 0.33 percent. Bank of Montreal (BMO.TO) is higher by 0.28 percent and Canadian Imperial Bank of Commerce (CM.TO) is up 0.68 percent. National Bank of Canada (NA.TO) is adding 0.23 percent and Toronto Dominion Bank (TD.TO) is rising 0.18 percent. Royal Bank of Canada (RY.TO) is gaining 0.24 percent and Bank of Nova Scotia (BNS.TO) is climbing 0.49 percent.

Sun Life Financial (SLF.TO) will acquire PWD Hong Kong's pension business, expanding further in Asia. The stock is dipping 0.02 percent.

The Capped Industrials Index is rising 0.14 percent. Canadian National Railway (CNR.TO) is increasing 0.99 percent and Canadian Pacific Railway (CP.TO) is adding 0.04 percent. Finning International (FTT.TO) is also advancing 1.48 percent.

Genworth MI Canada (MIC.TO) released a profit for second quarter that decreased 12% from last year. Shares are climbing 3.31 percent.

WSP Global (WSP.TO) is rising 1.96 percent. The company reported second quarter EPS of C$0.52, compared to C$1.07 last year.

On the economic front, China's private sector expanded at the fastest pace since September 2014 in July despite moderation in services activity growth. The Caixin composite output index rose to 51.9 in July from 50.3 in June, survey data released by Markit showed Wednesday.

The services sector in China continued to expand in July, albeit at a slower pace, the latest survey from Caixin showed on Wednesday with a services PMI score of 51.7. That's down from 52.7 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The euro area private sector expanded more than estimated in July, final survey data from Markit showed Wednesday. The final composite output index rose to a 6-month high of 53.2 in July from 53.1 in June. According to flash estimate, the index fell to 52.9.

Eurozone retail sales remained flat as expected in June, data from Eurostat showed Wednesday. Sales remained stable in June from May, when it climbed 0.4 percent. Sales of food, drinks and tobacco edged up 0.1 percent and that of non-food products moved up 0.3 percent.

British service sector shrunk for the first time in over three-and-a-half years and at the fastest pace in more than seven years, amid the uncertainty linked to "Brexit", survey data from Markit Economics and the Chartered Institute of Procurement & Supply showed Wednesday.

The Markit/CIPS business activity index for services declined to 47.4 from 52.3 in June, in line with a flash estimate released on July 22. The monthly drop of 4.9 points was the biggest since the survey began in July 1996, Markit said.

Shop prices in the United Kingdom fell 1.6 percent on year in July, the British Retail Consortium said on Wednesday. That follows the 2.0 percent decline in June.

Ahead of the release of the Labor Department's more closely watched monthly jobs report on Friday, payroll processor ADP released a report on Wednesday showing that U.S. private sector employment rose by a little more than expected in the month of July.

ADP said private sector employment increased by 179,000 jobs in July after climbing by an upwardly revised 176,000 jobs in June. Economists had expected employment to grow by about 170,000 jobs compared to the addition of 172,000 jobs originally reported for the previous month.

After reporting strong U.S. service sector growth in the previous month, the Institute for Supply Management released a report on Wednesday showing that the pace of growth in the sector slowed by more than expected in the month of July.

The ISM said its non-manufacturing index declined to 55.5 in July after jumping to a seven-month high of 56.5 in June. Economists had expected the index to show a more modest drop to 56.0.

In commodities, crude oil futures for September delivery are up 0.64 or 1.62 percent at $40.15 a barrel.

Natural gas for September is up 0.091 or 3.33 percent at $2.824 per million btu.

Gold futures for December are down $9.80 or 0.71 percent at $1,362.80 an ounce.

Silver for September is down $0.211 or 1.02 percent at $20.49 an ounce.