TSX Pares Losses As Crude Oil Prices Attempt To Stabilize -- Canadian Commentary

(RTTNews) - The Canadian stock market is trading to the downside Tuesday morning, but is off its early low. Crude oil prices have recovered from early weakness and are attempting to stabilize. The market is also receiving a boost from rising gold prices. The precious metal's safe haven appeal is driving gold stocks higher, with global equity markets under pressure.

Markets in Europe are trading solidly in negative territory Tuesday. The weak performance of the Asian markets and early weakness in crude oil prices weighed on the markets. The unexpected drop in German factory orders also contributed to the negative mood.

Markets in the United States are trading in the red this morning, but are off their early lows. The markets began to pare their losses after the ISM service sector report came in better than expected.

The benchmark S&P/TSX Composite Index is down 35.97 points or 0.27 percent at 13,300.18.

On Monday, the index closed down 104.29 points or 0.78 percent, at 13,336.15. The index scaled an intraday high of 13,452.92 and a low of 13,314.60.

The Gold Index is advancing 2.59 percent. Gold prices rebounded Tuesday morning amid increased demand for safe haven assets.

Goldcorp (G.TO) is rising 2.46 percent and Royal Gold (RGL.TO) is higher by 3.38 percent. Kinross Gold (K.TO) is climbing 2.25 percent and Barrick Gold (ABX.TO) is adding 2.95 percent. Eldorado Gold (ELD.TO) is increasing 2.79 percent and Yamana Gold (YRI.TO) is up 1.52 percent. IAMGOLD (IMG.TO) is advancing 1.75 percent and B2Gold (BTO.TO) is gaining 2.36 percent.

The Capped Materials Index is also up 1.27 percent. Agnico Eagle Mines (AEM.TO) is advancing 1.71 percent and Franco-Nevada (FNV.TO) is higher by 2.33 percent. Silver Wheaton (SLW.TO) is gaining 2.96 percent and Agrium (AGU.TO) is increasing 0.23 percent.

The Capped Health Care Index is higher by 0.93 percent. Concordia Healthcare (CXR.TO) is climbing 0.06 percent.

Valeant Pharmaceuticals International (VRX.TO) is surging 10.69 percent. The company announced that the ad hoc committee of the board of directors believes that its review of various Philidor and related accounting matters is complete, and that it has not identified any additional items that would require restatements beyond those required by matters previously disclosed.

The Diversified Metal and Mining Index is climbing 0.62 percent. First Quantum Minerals (FM.TO) is rising 0.47 percent and Lundin Mining (LUN.TO) is up 0.51 percent. Teck Resources (TCK-B.TO) is gaining 1.57 percent.

The Capped Information Technology Index is gaining 0.11 percent. Sierra Wireless (SW.TO) is climbing 1.53 percent and BlackBerry (BB.TO) is adding 0.32 percent. Descartes Systems Group (DSG.TO) is rising 0.32 percent.

The heavyweight Financial Index is decreasing 0.93 percent. Bank of Montreal (BMO.TO) is down 0.64 percent and Bank of Nova Scotia (BNS.TO) is falling 1.32 percent. Royal Bank of Canada (RY.TO) is lower by 0.92 percent and Canadian Imperial Bank of Commerce (CM.TO) is losing 0.63 percent. National Bank of Canada (NA.TO) is declining 0.77 percent and Toronto-Dominion Bank (TD.TO) is surrendering 0.87 percent.

The Capped Industrials Index is losing 0.54 percent. Canadian Pacific Railway (CP.TO) is falling 0.03 percent and Canadian National Railway (CNR.TO) is declining 0.09 percent. Bombardier (BBD-B.TO) is weakening by 0.78 percent and Air Canada (AC.TO) is down 1.18 percent. Finning International (FTT.TO) is decreasing 1 percent.

The Capped Telecommunication Services Index is falling 0.35 percent. Manitoba Telecom Services (MBT.TO) is lower by 0.40 percent and BCE (BCE.TO) is weakening by 0.17 percent. Rogers Communication (RCI-B.TO) is declining 1.12 percent.

The Energy Index is down 0.25 percent. Crude oil prices are attempting to steady, after falling to around $35 a barrel in early trade.

Suncor Energy (SU.TO) is lower by 0.74 percent and Imperial Oil (IMO.TO) is decreasing 0.07 percent. Crescent Point Energy (CPG.TO) is losing 0.29 percent and Cenovus Energy (CVE.TO) is down 0.54 percent. Canadian Natural Resources (CNQ.TO) is falling 0.15 percent.

SNC-Lavalin Group (SNC.TO) named Sylvain Girard EVP And CFO. The stock is falling 0.77 percent.

Fortis (FTS.TO) has completed the acquisition of Aitken Creek Gas Storage ULC from Chevron Canada. Aitken is the largest facility of its kind in BC. Shares are down 0.49 percent.

On the economic front, data from Statistics Canada showed that Canada's trade deficit widened to C$1.9 billion in February from C$628 million in January. This was also bigger than the expected C$900 million shortfall.

Canada's exports fell 5.4 percent to C$43.7 billion in February, while imports declined 2.6 percent to C$45.6 billion.

Eurozone retail sales grew at a slightly slower pace in February as non-food trade dropped for the first time in three months, Eurostat reported Tuesday.

Retail sales climbed 0.2 percent month-on-month in February following a revised 0.3 percent rise in January. Economists had forecast sales to remain flat after January's initially estimated 0.4 percent expansion.

The euro area private sector activity expanded less than initially estimated in March mainly due to the revisions in France and Italy, final data from Markit revealed Tuesday. The final composite output index rose slightly to 53.1 in March from 53.0 in February and the below the flash score of 53.7.

Germany's factory orders decreased unexpectedly in February on falling foreign demand, especially from the euro area, reflecting that sluggish global trade weighed on industrial activity.

Data from Destatis showed that new orders in manufacturing fell a seasonally adjusted 1.2 percent month-over-month in February, confounding economists' expectations for a 0.4 percent climb. This was the biggest fall in six months.

British service sector growth accelerated at a slower-than-expected pace in March, though slightly. Survey figures from Markit Economics showed Tuesday. The Chartered Institute of Procurement & Supply/Markit services Purchasing Managers' Index rose to 53.7 in March from 52.7 in the previous month. Economists had expected the index to rise to 53.8.

With imports rising at a faster rate than exports, the Commerce Department released a report on Tuesday showing that the U.S. trade deficit widened more than expected in the month of February. The Commerce Department said the trade deficit widened to $47.1 billion in February from a revised $45.9 billion in January.

Economists had expected the deficit to widen to $46.2 billion from the $45.7 billion originally reported for the previous month.

Growth in the U.S. service sector accelerated slightly more than expected in the month of March, according to a report released by the Institute for Supply Management on Tuesday. The ISM said its non-manufacturing index climbed to 54.5 in March from 53.4 in February, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 54.0.

In commodities, crude oil futures for May delivery are up 0.17 or 0.48 percent at $35.87 a barrel.

Natural gas for May is down 0.03 or 1.50 percent at $1.968 per million btu.

Gold futures for June are up $9.80 or 0.80 percent at $1,229.10 an ounce.

Silver for May is up $0.151 or 1.01 percent at $15.095 an ounce.