Canadian Stocks Are Up On Energy Strength -- Canadian Commentary

(RTTNews) - The Canadian stock market is holding on to modest gains Wednesday morning, but is off its early high. The market is extending the gains of the previous three trading sessions. Global markets are turning in a weak performance Wednesday, but the Canadian market is receiving a boost from the strong performance of energy stocks.

The European markets are trading in the red Wednesday, despite the better than expected German business confidence report. The weakness has been caused by a strengthening in the Euro against the U.S. dollar after the disappointing U.S. durable goods orders report.

Markets in the United States are slightly negative this morning, following an unexpected drop in durable goods orders for February. With orders for transportation equipment showing a notable pullback, the Commerce Department released a report on Wednesday showing that new orders for U.S. manufactured durable goods unexpectedly decreased in the month of February.

The report said durable goods orders fell by 1.4 percent in February following a downwardly revised 2.0 percent increase in January. The drop in orders came as a surprise to economists, who had expected orders to climb by 0.7 percent compared to the 2.8 percent jump that had been reported for the previous month.

The benchmark S&P/TSX Composite Index is up 16.29 points or 0.11 percent at 15,097.55. The index is off its early high of 15,161.61.

On Tuesday, the index closed up 124.05 points or 0.83 percent, at 15,081.26. The index scaled an intraday high of 15,103.18 and a low of 14,930.92.

The Energy Index is climbing by 0.82 percent. Crude oil prices are modestly higher, after a flat performance Wednesday morning. A run to 12-year highs for the dollar weighed on commodities for the past few months, but prices have risen this week as the buck relented versus the euro.

Canadian Natural Resources (CNQ.TO) is higher by 1.19 percent and Suncor Energy (SU.TO) is gaining 0.75 percent. Legacy Oil + Gas (LEG.TO) advancing by 3.83 percent and Pacific Rubiales Energy (PRE.TO) is gaining 1.40 percent.

Crescent Point Energy (CPG.TO) is increasing by 0.44 percent and Cenovus Energy (CVE.TO) is up 0.14 percent.

The Gold Index is rising by 0.97 percent, as gold prices tick higher. Goldcorp (G.TO) is advancing by 0.33 percent and Barrick Gold (ABX.TO) is gaining 1.27 percent. B2Gold (BTO.TO) is climbing by 1.20 percent and Yamana Gold (YRI.TO) is higher by 0.38 percent.

The Capped Materials Index is up 0.94 percent, mostly on the rise in gold prices. Franco-Nevada (FNV.TO) is higher by 0.05 percent and Agnico Eagle Mines (AEM.TO) is gaining 2.46 percent. Agrium (AGU.TO) is higher by 2.41 percent and Potash Corp. of Saskatchewan (POT.TO) is rising by 1.66 percent. The Diversified Metal and Mining Index is decreasing by 0.25 percent. Finning International (FTT.TO) is down 0.98 percent.

The heavyweight Financial Index is down 0.12 percent. Canadian Imperial Bank of Commerce (CM.TO) is falling by 0.11 percent and National Bank of Canada (NA.TO) is decreasing by 0.10 percent. Bank of Montreal (BMO.TO) is also down 0.29 percent.

The Capped Information Technology Index is lower by 0.69 percent. Constellation Software (CSU.TO) is decreasing by 0.91 percent and Sierra Wireless (SW.TO) is losing 1.75 percent. BlackBerry (BB.TO) is also falling by 0.59 percent.

Tricon Capital Group (TCN.TO) is rising by 3.89 percent, after its subsidiary, Tricon American Homes agreed to acquire a portfolio of approximately 1,400 U.S. single-family rental homes.

Oncolytics Biotech (ONC.TO) is surging by 8.25 percent. The European Medicines Agency has granted Orphan Drug Designation to REOLYSIN, a treatment for ovarian, fallopian tube and primary peritoneal cancers.

Dollarama (DOL.TO) is increasing by 4.83 percent, after its fourth quarter EPS rose to C$0.76 from C$0.59 last year.

On the economic front, German business morale improved for the fifth straight month to an eight-month high in March as firms expressed greater optimism about future developments. The business climate index rose more-than-expected to 107.9 in March from 106.8 in February, the results of a survey by Munich-based Ifo Institute showed Wednesday. This was the highest score since July 2014 when the reading was 108. It was forecast to rise to 107.3.

French business confidence weakened in March but remained close to its long-term average, survey data from the statistical office Insee showed Wednesday. The business confidence index fell to 99 from 100 in February. It was forecast to remain unchanged at 100.

U.K. mortgage approvals rose to a five-month high in February, the British Bankers' Association reported Wednesday. The number of mortgages approved for house purchases rose to a seasonally adjusted 37,305 in February from 36,517 in January. This was the highest since September 2014. It was expected to rise slightly to 36,650.

In commodities, crude oil futures for April delivery are up $0.75 or 1.58 percent at $48.26 a barrel.

Natural gas for April is down $0.047 or 1.69 percent at $2.739 per million btu.

Gold futures for April are up $6.30 or 0.53 percent at $1,197.70 an ounce.

Silver for May is up $0.062 or 0.37 percent at $17.045 an ounce.