The Canadian stock market is bouncing back in early trade Monday, following the heavy losses of the previous week. Investors are breathing a sigh of relief as tensions between the United States and North Korea seem to have eased over the weekend.
Senior U.S. national security officials said Sunday that the nation is not on the brink of nuclear war with North Korea, but the danger is much greater than it was a decade ago.
Also, Chinese President Xi Jinping has urged both sides to avoid words and action that could worsen the situation.
Markets in Europe are rebounding Monday, after suffering their heaviest weekly in nine months last week. Investors shrugged off the first decline in Eurozone industrial production in four months in June, as tensions between the U.S. and North Korea eased over the weekend.
Markets in the United States are also rising at the start of the new trading week. Bargain hunting is playing a role in the early gains, as investors look to snap up stocks at low prices following the losses last week.
The benchmark S&P/TSX Composite Index is up 128.34 points or 0.85 percent at 15,161.72.
On Friday, the index closed down 40.87 points or 0.27 percent, at 15,033.38. The index scaled an intraday high of 15,068.66 and a low of 14,995.25.
The Capped Information Technology Index is gaining 1.45 percent. Sierra Wireless (SW.TO) is advancing 1.33 percent and BlackBerry (BB.TO) is rising 1.80 percent. Constellation Software (CSU.TO) is increasing 1.14 percent and Descartes Systems Group (DSG.TO) is adding 1.66 percent.
The Capped Industrials Index is up 1.28 percent. Canadian National Railway (CNR.TO) is advancing 1.49 percent and Canadian Pacific Railway (CP.TO) is gaining 1.14 percent. Air Canada (AC.TO) is climbing 3.84 percent and Finning International (FTT.TO) is up 0.47 percent.
Bombardier (BBD-B.TO) is increasing 1.56 percent. The company announced that it has won contracts for the first monorails in Thailand.
The heavyweight Financial Index is increasing 1.00 percent. Royal Bank of Canada (RY.TO) is rising 1.14 percent and Bank of Montreal (BMO.TO) is gaining 1.09 percent. Canadian Imperial Bank of Commerce (CM.TO) is up 0.79 percent and National Bank of Canada (NA.TO) is advancing 0.76 percent. Toronto-Dominion Bank (TD.TO) is higher by 0.94 percent and Bank of Nova Scotia (BNS.TO) is climbing 1.06 percent.
The Capped Telecommunication Services Index is up 0.76 percent. BCE (BCE.TO) is rising 0.70 percent and Rogers Communications (RCI-B.TO) is higher by 0.95 percent. TELUS (T.TO) is increasing 0.76 percent.
The Energy Index is rising 0.24 percent. Crude oil prices are holding just below $49 a barrel Monday morning, as the dollar found its footing.
Suncor Energy (SU.TO) is climbing 0.58 percent and Canadian Natural Resources (CNQ.TO) is adding 0.38 percent. Encana (ECA.TO) is rising 0.73 percent and Enbridge (ENB.TO) is up 1.38 percent.
Husky Energy (HSE.TO) is gaining 1.16 percent. The company has agreed to acquire U.S. Midwest Refinery for US$435 million in cash.
The Gold Index is declining 0.77 percent. Gold prices have inched lower Monday morning as tensions between the U.S. and North Korea eased over the weekend.
Kinross Gold (K.TO) is declining 0.19 percent and Eldorado Gold (ELD.TO) is weakening by 1.57 percent. Yamana Gold (YRI.TO) is lower by 2.92 percent and Goldcorp (G.TO) is surrendering 1.64 percent. Barrick Gold (ABX.TO) is decreasing 1.34 percent and B2Gold (BTO.TO) is losing 1.53 percent.
The Capped Materials Index is down 0.14 percent. Agnico Eagle Mines (AEM.TO) is falling 0.27 percent.
Premium Brands (PBH.TO) is climbing 7.55 percent after its second quarter EPS increased to C$0.90 from C$0.64 a year ago.
On the economic front, China's industrial output and retail sales grew at weaker rates at the start of the third quarter as measures to de-leverage the economy and cool property markets weighed on activity.
Data from the National Bureau of Statistics showed that industrial production grew 6.4 percent year-on-year in July, slower than the 7.6 percent increase in June and the expected 7.1 percent.
Retail sales growth eased to 10.4 percent in July from 11 percent in June. Sales were forecast to advance 10.8 percent.
Eurozone industrial production declined for the first time in four months in June, Eurostat reported Monday.
Industrial production decreased 0.6 percent month-on-month in June, reversing a revised 1.2 percent rise in May. This was the first decrease since February, when output slid 0.2 percent. Economists had forecast output to fall 0.5 percent in June.
In commodities, crude oil futures for September delivery are up 0.11 or 0.23 percent at $48.93 a barrel.
Natural gas for September is down 0.034 or 1.14 percent at $2.949 per million btu.
Gold futures for December are down 2.00 or 0.16 percent at $1,289.20 an ounce.
Silver for September is up 0.015 or 0.09 percent at $17.085 an ounce.
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