Canadian Stocks Are Holding Gains Despite Weak GDP -- Canadian Commentary

(RTTNews) - The Canadian stock market is holding onto modest gains Tuesday morning, following three straight days of losses. The markets pulled back in early trade, after Canadian GDP logged an unexpected decline in April. However, the recent losing streak has provided investors an opportunity to hunt for bargains. The upside is being limited due to weakness in commodities.

Statistics Canada reported Tuesday morning that Canadian Gross Domestic Product for April fell by 0.1 percent in April, following the decline of 0.2 percent in March. Economists had been expecting an increase of 0.1 percent.

Markets in Europe are trading modestly to the downside, as investors continue to watch the unfolding drama in Greece. Greece has responded to a last-minute offer from creditors with a request for a two-year bailout and debt restructuring.

Markets in the United States are holding onto modest gains this morning. The early strength on Wall Street is partly due to bargain hunting following yesterday's sell-off, which pulled the Dow down to its lowest closing level in almost five months. The S&P 500 also ended the previous session at its worst closing level in three months, while the Nasdaq dropped to a nearly two-month closing low.

Home prices in major U.S. metropolitan areas unexpectedly grew at a slower annual rate in the month of April, according to a report released by Standard & Poor's on Tuesday. The report said the S&P/Case-Shiller 20-City Composite Home Price Index rose 4.9 percent year-over-year in April, reflecting a modest slowdown from the 5.0 percent growth seen in March.

The slowdown came as a surprise to economists, who had expected the annual rate of growth by the index to accelerate to 5.4 percent.

While MNI Indicators released a report on Tuesday showing a notable increase by its Chicago business barometer in the month of June, the index continued to point to a contraction in regional business activity. The report said the Chicago business barometer climbed to 49.4 in June from 46.2 in May, but a reading below 50 continues to indicate a contraction. Economists had expected the index to rise to 50.6.

After reporting a modest improvement in U.S. consumer confidence in the previous month, the Conference Board released a report on Tuesday showing that its consumer confidence index increased by much more than expected in June.

The report said the consumer confidence index jumped to 101.4 in June from a downwardly revised 94.6 in May. Economists had expected the index to rise to 97.4 from the 95.4 originally reported for the previous month.

The benchmark S&P/TSX Composite Index is up 46.45 points or 0.32 percent at 14,536.60.

On Monday, the index closed down 317.94 points or 2.15 percent, at 14,490.15. The index scaled an intraday high of 14,738.48 and a low of 14,482.16.

The Gold Index is declining by 1.05 percent. Gold prices were lower Tuesday morning amid last ditch efforts to revive talks between Greece and its creditors.

Goldcorp (G.TO) is down 1.33 percent and Kinross Gold (K.TO) is dropping by 3.16 percent. IAMGOLD (IMG.TO) is losing 2.71 percent and B2Gold (BTO.TO) is lower by 1.04 percent. Barrick Gold (ABX.TO) is also falling by 1.27 percent.

The Diversified Metal and Mining Index is losing 1.91 percent. First Quantum Minerals (FM.TO) is decreasing by 1.48 percent and HudBay Minerals (HBM.TO) is down 1.90 percent. Lundin Mining (LUN.TO) is losing 2.27 percent and Teck Resources (TCK-A.TO) is declining by 1.69 percent. Sherritt International (S.TO) is also lower by 0.97 percent.

The Capped Materials Index is also down 0.41 percent. Franco-Nevada (FNV.TO) is falling by 0.69 percent and Agnico Eagle Mines (AEM.TO) is declining by 2.41 percent. Silver Wheaton (SLW.TO) is losing 0.88 percent.

The Capped Information Technology Index is dipping by 0.14 percent. Constellation Software (CSU.TO) is down 0.31 percent and BlackBerry (BB.TO) is decreasing by 1.46 percent.

The Capped Telecommunication Services Index is rising by 0.93 percent. TELLUS (T.TO) is up 0.68 percent and BCE (BCE.TO) is advancing by 0.47 percent. Manitoba Telecom Services is higher by 1.48 percent and Rogers Communication (RCI-A.TO) is gaining 1.89 percent.

The Capped Health Care Index is up 0.98 percent. Concordia Healthcare (CXR.TO) is climbing by 2.83 percent and Valeant Pharmaceuticals International (VRX.TO) is gaining 0.77 percent. Extendicare (EXE.TO) is higher by 1.07 percent and Catamaran (CCT.TO) is adding 0.49 percent.

The heavyweight Financial Index is rising by 0.52 percent. Royal Bank of Canada (RY.TO) is higher by 0.47 percent and Bank of Nova Scotia (BNS.TO) is advancing by 0.34 percent. Toronto-Dominion Bank (TD.TO) is rising by 0.53 percent and Bank of Montreal (BMO.TO) is climbing by 0.46 percent. National Bank of Canada (NA.TO) is increasing by 0.21 percent and Canadian Imperial Bank of Commerce (CM) is up 0.40 percent.

The Energy Index is increasing by 0.30 percent. Crude oil prices nudged higher after hitting 3-week lows as focus remained on the Greek debt crisis.

Suncor Energy (SU.TO) is rising by 1.27 percent and Enbridge (ENB.TO) is advancing by 0.45 percent. Legacy Oil + Gas (LEG.TO) is gaining 0.83 percent and Crescent Point Energy (CPG.TO) is up 0.63 percent. Husky Energy (HSE.TO) is climbing by 0.46 percent and Tourmaline Oil (TOU.TO) is higher by 0.37 percent.

Cenovus Energy (CVE.TO) is decreasing by 0.96 percent. The company has reached an agreement to sell Heritage Royalty Limited Partnership, a wholly-owned subsidiary, to Ontario Teachers' Pension Plan for gross cash proceeds of approximately $3.3 billion.

Wi-Lan (WIN.TO) is rising by 5.11 percent, after James Skippen announced plans to retire from his position as President and Chief Executive Officer.

Sun Life Financial (SLF.TO) is gaining 0.84 percent, after it agreed to acquire Prime Advisors Inc.

On the economic front, Eurozone inflation slowed in June largely due to another sharp fall in energy prices, indicating that the central bank has to do more to achieve its inflation target. Inflation eased to 0.2 percent in June, in line with economists' forecast, from 0.3 percent in the prior month, flash data from Eurostat showed Tuesday.

Eurozone unemployment rate remained unchanged at the lowest level seen since early 2012 in May, official data revealed Tuesday. As expected by economists, the jobless rate held steady at 11.1 percent in May, Eurostat reported. This was the lowest rate recorded in the euro area since March 2012.

Germany's retail sales grew for the second straight month in May albeit at a slower pace compared to April, data from Destatis showed Tuesday. Retail sales turnover advanced 0.5 percent from April, when it was up 1.3 percent. This was the second consecutive increase. Sales were expected to remain flat in May.

Germany's unemployment rate held steady in May, figures from Destatis showed Tuesday. The jobless rate came in at an adjusted 4.7 percent in May, the same rate as in the previous month. In the same month of the previous year, the rate was 5.0 percent.

German unemployment declined less than expected in June, data from the Federal Labor Agency reportedly revealed Tuesday. The number of people out of work fell 1,000 in June from the prior month, while it was forecast to drop by 5,000.

The jobless rate remained unchanged at 6.4 percent in June, in line with expectations.

French consumer spending increased for the first time in three months in May, the statistical office Insee reported Tuesday. Consumer spending gained 0.1 percent month-on-month in May, in contrast to the expectations for a 0.2 percent fall. Spending was flat in April and down 0.6 percent in March.

France's producer prices declined again in May largely due to a sharp fall in refined petroleum product prices, the statistical office Insee said Tuesday. Producer prices in the French market decreased 1.7 percent in May from last year. Prices in foreign market climbed 0.6 percent, while prices in total industry declined 1.2 percent.

The U.K. economy grew more than previously estimated in the first quarter, the Office for National Statistics showed Tuesday. Gross domestic product gained 0.4 percent sequentially, revised up from the 0.3 percent growth estimated on May 28.

Consumer confidence in the United Kingdom surged in June, the latest survey from marketing research company GfK revealed on Tuesday, with an index score of +7. That handily beat forecasts for a reading of +2, and it was up from +1 in May.

In commodities, crude oil futures for July delivery are up $0.41 or 0.70 percent at $58.74 a barrel.

Natural gas for July is down 0.042 or 1.50 percent at $2.763 per million btu.

Gold futures for August are down $8.70 or 0.74 percent at $1,170.30 an ounce.

Silver for July is down $0.18 or 1.15 percent at $15.515 an ounce.