The Canadian stock market is rising in early trade Friday, after ending yesterday's session with a modest decrease. The majority of the Canadian sectors are rising this morning, with the notable exception of the energy sector. Crude oil prices are falling Friday morning, slipping from 4-year highs near $65.
Markets in Europe are climbing Friday, after ending Thursday's session mostly higher. Optimism about economic growth and corporate earnings are helping investors shrug off concerns about a potential U.S. government shutdown.
Markets on Wall Street are paring early gains and have slipped back near the flat line. Concerns about a potential government shutdown has investors in a nervous mood. The House voted 230 to 197 in favor of a short-term government spending bill Thursday night, with the vote largely coming down along party lines.
However, the future of the spending bill in the Senate is uncertain, with Democrats saying they have the votes to block the legislation.
The benchmark S&P/TSX Composite Index is up 54.66 points or 0.34 percent at 16,339.12.
On Thursday, the index closed down 42.23 points or 0.26 percent, at 16,284.47. The index scaled an intraday high of 16,344.05 and a low of 16,270.64.
The Gold Index is increasing 0.69 percent. Gold prices are rebounding Friday morning, amid the threat of a U.S. federal government shutdown.
Goldcorp (G.TO) is gaining 0.56 percent and IAMGOLD (IMG.TO) is advancing 1.57 percent and Yamana Gold (YRI.TO) is rising 0.72 percent and Barrick Gold (ABX.TO) is up 1.04 percent. Kinross Gold (K.TO) is adding 0.19 percent.
The Capped Telecommunication Services Index is up 0.74 percent. BCE (BCE.TO) advancing 0.62 percent and Rogers Communications (RCI-B.TO) is higher by 0.93 percent. TELUS (T.TO) is climbing 0.70 percent.
The Capped Industrials Index is up 0.65 percent. Canadian National Railway (CNR.TO) is gaining 0.78 percent and WestJet Airlines (WJA.TO) is higher by 0.68 percent. Finning International (FTT.TO) is increasing 0.54 percent
Canadian Pacific Railway (CP.TO) is rising 1.88 percent after it announced earnings for its fourth quarter that increased compared to the same period last year.
The company said its bottom line rose to C$469 million, or C$3.22 per share. This was higher than C$448 million, or C$3.04 per share, in last year's fourth quarter.
The heavyweight Financial Index is increasing 0.67 percent. Royal Bank of Canada (RY.TO) is gaining 0.92 percent and Toronto-Dominion Bank (TD.TO) is advancing 0.61 percent. Bank of Montreal (BMO.TO) is higher by 1.08 percent and National Bank of Canada (NA.TO) is rising 0.87 percent. Bank of Nova Scotia (BNS.TO) is climbing 0.56 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.38 percent.
The Capped Materials Index is up 0.67 percent. Agnico Eagle Mines (AEM.TO) is rising 0.09 percent and Franco-Nevada (FNV.TO) is climbing 0.90 percent. Nutrien (NTR.TO) is higher by 0.18 percent.
The Capped Information Technology Index is gaining 0.35 percent. Descartes Systems Group (DSG.TO) is up 1.12 percent and Sierra Wireless (SW.TO) is adding 0.25 percent. BlackBerry (BB.TO) is advancing 0.12 percent.
The Energy Index is falling 1.27 percent. Crude oil prices are falling Friday morning as OPEC worries that U.S. oil output will remain robust in 2018. There are signs of the U.S. shale boom slowing down, but OPEC's forecast for U.S. output growth this year was revised up by 110,000 barrels per day to 820,000 bpd.
Encana (ECA.TO) is weakening by 0.18 percent and Crescent Point Energy (CPG.TO) is decreasing 4.08 percent. Cenovus Energy (CVE.TO) is declining 2.22 percent and Canadian Natural Resources (CNQ.TO) is losing 0.64 percent. Imperial Oil (IMO.TO) is down 1.11 percent. Suncor Energy (SU.TO) is dropping 1.47 percent and Enbridge (ENB.TO) is down 0.38 percent.
The Capped Healthcare Index is lower by 0.36 percent. Extendicare (EXE.TO) is losing 0.89 percent and Valeant Pharmaceuticals International (VRX.TO) is declining 3.36 percent. ProMetic Life Sciences (PLI.TO) is falling 1.92 percent.
Canopy Growth (WEED.TO) is raising $175 million in a bought deal financing co-led by BMO, the marijuana company said. Shares are climbing 1.27 percent.
On the economic front, a report from Statistics Canada this morning showed that Canadian manufacturing sales increased by 3.4 percent in November. It was the biggest sales increase in over 2 years. Economists had expected an increase of 2.0 percent.
The euro area current account surplus increased in November after falling for two straight months, data from the European Central Bank showed Friday. The current account surplus rose to EUR 32.5 billion from EUR 30.3 billion in October.
Germany's producer price inflation eased in December, figures from Destatis showed Friday. Producer prices climbed 2.3 percent year-on-year in December, slower than the 2.5 percent increase registered in November. A similar weaker rate was last seen in July.
UK retail sales in December declined more-than-expected from the previous month when consumers were lured by Black Friday promotions, data from the Office for National Statistics revealed Friday.
Retail sales volume dropped by a more-than-expected 1.5 percent from November, when they grew 1 percent.
This was the biggest fall since June 2016 and the largest in seven years for the month of December. Economists had forecast a 1 percent fall.
Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of January, according to a preliminary report released by the University of Michigan on Friday. The report said the consumer sentiment index dipped to 94.4 in January from the final December reading of 95.9. Economists had expected the index to rise to 97.0.
In commodities, crude oil futures for February delivery are down 0.43 or 0.67 percent at $63.52 a barrel.
Natural gas for February is down 0.017 or 0.53 percent at $3.172 per million btu.
Gold futures for February are up 7.40 or 0.56 percent at $1,334.60 an ounce.
Silver for March is up 0.091 or 0.54 percent at $17.045 an ounce.
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