Canadian Stocks Are Extending Recent Gains -- Canadian Commentary

(RTTNews) - The Canadian stock market is rising in early trade Tuesday, extending its gains from the previous three sessions. Optimism that the U.S. Federal Reserve may delay its planned increase in interest rates on the heels of Friday's disappointing March jobs report is fueling gains in global equity markets. The Fed may provide additional hints about the outlook for interest rates with the release of the minutes of its latest monetary policy meeting on Wednesday.

Markets in Europe have returned to action Tuesday, following a long Easter holiday weekend. European investors got their first opportunity to react to Friday's weak U.S. jobs report. Investor confidence also received a boost from the Eurozone investor confidence data, which rose to the highest level in nearly seven-and-a-half years in April.

Markets in the United States are also in positive territory this morning, adding to yesterday's gains. Investor optimism for a delay to a rate hike by the Fed was fueled further by comments from Atlanta Fed President Dennis Lockhart. Lockhart stated in an interview that he favors pushing out the first rate hike beyond the next two meetings.

"I would probably be biased toward the July or September dates as opposed to June," said Lockhart. He added, "We will have more data and we will give the economy a little more time to prove out the thesis that I laid out, that the first quarter was anomalous again, just like a year ago."

Trading activity has been somewhat subdued, due to a lack of major U.S. economic data. Investors are also looking ahead to the release of quarterly results from Alcoa after the close of trading on Wednesday, which is views as the unofficial kick-off to the U.S. earnings reporting season.

The benchmark S&P/TSX Composite Index is 151.99 points or 1.01 percent at 15,252.64.

On Monday, the index closed up 74.03 points or 0.49 percent, at 15,100.65. The index scaled an intraday high of 15,160.72 and a low of 15,016.49.

The Energy Index is rising by 1.66 percent. Canadian Oil Sands (COS.TO) is up 2.30 percent and Crescent Point Energy (CPG.TO) is increasing by 2.14 percent. Canadian Natural Resources (CNQ.TO) is higher by 2.58 percent and Legacy Oil + Gas (LEG.TO) is surging by 10.81 percent.

Suncor Energy (SU.TO) is climbing by 1.42 percent and Pacific Rubiales Energy (PRE.TO) is advancing by 0.97 percent. Encana (ECA.TO) is gaining 1.79 percent and Bonterra Energy (BNE.TO) is adding 5.12 percent.

The Capped Industrials Index is gaining 1.31 percent. Canadian Pacific Railway (CP.TO) is rising by 1.30 percent and Canadian National Railway (CNR.TO) is adding 1.95 percent. Bombardier (BBD-A.TO) is climbing by 1.88 percent.

Air Canada (AC.TO) is higher by 3.45 percent. The company reported a March system load factor of 83.1 percent, versus 81.7 percent a year ago.

The Capped Information Technology Index is up 1.37 percent. Constellation Software (CSU.TO) is gaining 2.21 percent and Descartes Systems Group (DSG.TO) is higher by 1.13 percent. BlackBerry (BB.TO) is advancing by 0.77 percent and Sierra Wireless (SW.TO) is gaining 1.49 percent.

The Capped Telecommunication Services Index is climbing by 0.83 percent. BCE (BCE.TO) is higher by 0.99 percent and TELUS (T.TO) is increasing by 1.25 percent. Manitoba Telecom Services (MBT.TO) is advancing by 0.40 percent.

The Capped Health Care Index is rising by 0.94 percent. Valeant Pharmaceuticals International (VRX.TO) is higher by 1.50 percent and Catamaran (CCT.TO) is up 0.20 percent.

The heavyweight Financial Index is gaining 0.81 percent. Bank of Montreal (BMO.TO) is up 1.02 percent and Toronto-Dominion Bank (TD.TO) is adding 0.89 percent. Bank of Nova Scotia (BNS.TO) is advancing by 1.01 percent and Canadian Imperial Bank of Commerce (CM.TO) is higher by 0.90 percent. National Bank of Canada (NA.TO) is rising by 0.62percent and Royal Bank of Canada (RY.TO) is climbing by 1.23 percent.

The Gold Index is falling by 0.79 percent. Yamana Gold (YRI.TO) is declining by 0.52 percent and IAMGOLD (IMG.TO) is falling by 0.77 percent. Kinross Gold (K.TO) is down 1.64 percent and Royal Gold (RGL.TO) is lower by 0.24 percent. Barrick Gold (ABX.TO) is losing 1.21 percent and B2Gold (BTO.TO) is decreasing by 1.24 percent.

The Capped Materials Index is also losing 0.11 percent. Agnico Eagle Mines (AEM.TO) is falling by 2.05 percent and Franco-Nevada (FNV.TO) is losing 1.94 percent.

The Diversified Metal and Mining Index is increasing by 0.43 percent. Capstone Mining (CS.TO) is climbing by 0.79 percent and HudBay Minerals (HBM.TO) is adding 0.84 percent. Lundin Mining (LUN.TO) is rising by 0.39 percent and Finning International (FTT.TO) is gaining 0.96 percent. Sherritt International (S.TO) is advancing by 2.25 percent and Teck Resources (TCK-A.TO) is up 0.32 percent.

Hudson's Bay (HBC.TO) is surging by 6.12 percent. The company reported fourth quarter EPS of C$0.61, up from C$0.16 last year.

Resverlogix (RVX.TO) is up 10.90 percent, after it received two China patent approvals covering RVX-208.

On the economic front, Eurozone investor confidence rose to the highest level in nearly seven-and-a-half years in April, amid signs of strengthening in the euro area economy, survey data from the think tank Sentix revealed Tuesday. The investor confidence index for Eurozone climbed to 20 from 18.6 in March. The latest score was the highest since August 2007.

The Eurozone private sector continued to improve in March with the Purchasing Mangers' Index rising to an 11-month high to mark its joint highest level for almost four years. The final composite output index rose to 54 in March from 53.3 in February, final data from Markit Economics showed today. A reading above 50 indicates expansion in the private sector.

But the score was marginally below the flash estimate of 54.1. The reading reached an 11-month high and its joint-highest for almost four years.

Eurozone producer prices logged the first monthly increase in five months in February, data from Eurostat showed Tuesday. Industrial producer prices for the domestic market rose 0.5 percent from January, when they fell 1.1 percent, which was revised from 0.9 percent fall.

British services sector registered its fastest growth in seven months in March as wider economic recovery and improving confidence boosted new business, survey data from Markit Economics and the Chartered Institute of Procurement & Supply showed Tuesday.

The Markit/CIPS Purchasing Managers' Index for the services sector climbed more-than-expected to 58.9 from February's 56.7. It was the strongest growth in activity since August last year and was above the expected reading of 57.

In commodities, crude oil futures for May delivery are down $0.03 or 0.06 percent at $52.17 a barrel.

Natural gas for May is up $0.031 or 1.17 percent at $2.681 per million btu.

Gold futures for June are down $5.00 or 0.41 percent at $1,213.60 an ounce.

Silver for May is down $0.24 or 1.40 percent at $16.87 an ounce.