Canadian Stocks Are Tracking Global Market Higher -- Canadian Commentary

(RTTNews) - The Canadian stock market is climbing in early trade Monday. The market is tracking global equity markets higher, despite weakness in shares of energy and mining stocks. Investors appear to have shrugged off some disappointing U.S. economic data as they await the results of the Federal Reserve's monetary policy meeting on Wednesday.

Markets in Europe are in the green at the start of the new trading week. The markets appear to be benefitting from the weakness in the U.S. dollar this morning, after the currency ascended to a 12-year high against the Euro on Friday.

Markets in the United States are also positive this morning. Weakness in the dollar is partly responsible for the move, following the currency's recent surge. The Fed is not expected to raise interest rates at its meeting this week, but traders will be paying close attention to the accompanying statement. In light of recent upbeat jobs data, many analysts expect the Fed to drop the word "patient" in its comments about future rate hikes.

Homebuilder confidence in the U.S. has unexpectedly deteriorated in the month of March, according to a report released by the National Association of Home Builders on Monday. The report said the NAHB/Wells Fargo Housing Market Index fell to 53 in March from 55 in February. The drop surprised economists, who had expected the index to inch up to 56.

With a jump in utilities output partly offset by a drop in mining output, the Federal Reserve released a report on Monday showing that U.S. industrial production grew by less than expected in the month of February.

The Fed said industrial production inched up by 0.1 percent in February following a revised 0.3 percent decrease in January. Economists had expected production to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.

The benchmark S&P/TSX Composite Index is up 115.71 points or 0.79 percent at 14,847.21.

On Friday, the index closed down 39.22 points or 0.27 percent, at 14,731.50. The index scaled an intraday high of 14,738.93 and a low of 14,606.19.

The Energy Index is falling by 2.00 percent. U.S. crude oil prices dropped to new 6-year lows Monday morning amid rising stockpiles and hopes of a nuclear deal with Iran.

Sites where crude oil barrels are stores are running out of room for excess supplies as OPEC and non-OPEC nations continue their price war.

Crescent Point Energy (CPG.TO) is falling by 4.27 percent and Canadian Natural Resources (CNQ.TO) is lower by 1.70 percent. Encana (ECA.TO) is down 0.87 percent and Suncor Energy (SU.TO) is losing 1.56 percent.

Cenovus Energy (CVE.TO) is declining by 1.55 percent and Canadian Oil Sands (COS.TO) is down 4.75 percent. Pacific Rubiales Energy (PRE.TO) is decreasing by 9.39 percent and Legacy Oil + Gas (LEG.TO) falling by 9.15 percent. Baytex Energy (BTE.TO) is also down 3.75 percent.

Ensign Energy Services (ESI.TO) is climbing by 3.43 percent. The company reported fourth quarter adjusted net income of C$0.29 per share. Analysts expected earnings per share of C$0.24.

The Gold Index is losing 1.52 percent. Gold prices were steady for a second day Monday morning, as the Federal Reserve prepared to meet about whether to soon raise interest rates.

Barrick Gold (ABX.TO) is declining 2.06 percent and Eldorado Gold (ELD.TO) is falling by 3.88 percent. Yamana Gold (YRI.TO) is lower by 2.93 percent and Kinross Gold (K.TO) is down 2.69 percent. Goldcorp (G.TO) is declining by 1.37 percent and B2Gold (BTO.TO) is also surrendering 2.69 percent.

The Diversified Metal and Mining Index is decreasing by 1.11 percent. Lundin Mining (LUN.TO) is declining by 0.80 percent and HudBay Minerals (HBM.TO) is losing 1.17 percent. First Quantum Minerals (FM.TO) is falling by 1.15 percent and Finning International (FTT.TO) is down 0.29 percent. Teck Resources (TCK-A.TO) dropping by 1.50 percent and Sherritt International (S.TO) is weaker by 4.40 percent.

The Capped Materials Index is also down 0.62 percent. Agnico Eagle Mines (AEM.TO) is lower by 0.88 percent and Franco-Nevada (FNV.TO) is losing 0.20 percent. Silver Wheaton (SLW.TO) is also down 1.37 percent.

The heavyweight Financial Index is gaining 0.93 percent. Toronto-Dominion Bank (TD.TO) is advancing by 0.69 percent and Bank of Montreal (BMO.TO) is rising 1.21 percent. Bank of Nova Scotia (BNS.TO) is climbing by 1.07 percent and Canadian Imperial Bank Of Commerce (CM.TO) is up 0.45 percent. National Bank of Canada (NA.TO) is increasing by 0.88 percent and Royal Bank of Canada (RY.TO) is adding 0.89 percent.

The Capped Health Care Index is rising by 1.80 percent. Catamaran (CCT.TO) is advancing by 2.19 percent.

Valeant Pharmaceuticals International (VRX.TO) is increasing by 2.50 percent. The company agreed to amend its merger agreement with Salix Pharmaceuticals, after raising its bid for the company to $173 per share, from its prior offer of $158 per share.

Extendicare (EXE.TO) is climbing by 0.42 percent, after it declared a cash dividend of C$0.04 per common share for the month of March.

The Capped Industrials Index is up 1.64 percent. Air Canada (AC.TO) is increasing by 1.31 percent and Canadian National Railway (CNR.TO) is advancing by 2.12 percent.

Canadian Pacific Railway (CP.TO) is gaining 3.16 percent, after the company renewed its share repurchase program.

The Capped Telecommunication Services Index is climbing by 0.82 percent. TELUS (T.TO) is increasing by 0.95 percent and BCE (BCE.TO) is rising by 1.48 percent.

The Capped Information Technology Index is gaining 0.76 percent. Sierra Wireless (SW.TO) is up 0.86 percent and Constellation Software (CSU.TO) is rising by 1.66 percent.

Algonquin Power & Utilities (AQN.TO) is surging by 11.18 percent. The company reported fourth quarter adjusted EPS of C$0.14, up from C$0.08 last year.

On the economic front, China's fiscal revenue rose at a slower pace at the start of the year as slower growth weighed on tax collections, data from the Finance Ministry revealed Monday. Fiscal revenues rose 3.2 percent in January to February from the previous year. Revenues totaled CNY 2.57 trillion.

The average asking price for a house in the United Kingdom was up 1.0 percent on month in March, property tracking website Rightmove said on Monday. That missed forecasts for an increase of 1.9 percent, and it was down from the 2.1 percent gain in February.

Activity in the New York manufacturing sector has grown at a slightly slower pace in the month of March, according to a report released by the Federal Reserve Bank of New York on Monday.

The New York Fed said its general business conditions index fell to 6.9 in March from 7.8 in February, although a positive reading continues to indicate growth in regional manufacturing activity. Economists had expected the index to dip to 7.0.

In commodities, crude oil futures for April delivery are down $1.48 or 3.30 percent at $43.36 a barrel.

Natural gas for April is down $0.02 or 0.73 percent at $2.707 per million btu.

Gold futures for April are up $1.50 or 0.13 percent at $1,153.90 an ounce.

Silver for May is up $0.096 or 0.62 percent at $15.59 an ounce.