Canadian Stocks Are Falling After Rate Hike - Canadian Commentary

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(RTTNews.com) - The Canadian stock market is losing ground in early trade Wednesday, extending the losses from the previous two sessions. As expected, the Bank of Canada raised the benchmark rate to 1.75 percent from 1.50 percent this morning.

Crude oil prices are rising this morning, but investors remain preoccupied by geopolitical worries, concerns over the trade war and the outlook for global economic growth.

Markets in Europe are trading in the green Wednesday, following five straight days of losses. However, the early struggles on Wall Street have caused the European markets to pare their gains.

Markets on Wall Street are losing ground in early trade Wednesday. Investors continue to sift through corporate earnings and are keeping a close eye on speeches from several Fed officials. Traders are also looking forward to the release of the Beige Book this afternoon.

The benchmark S&P/TSX Composite Index is down 122.59 points or 0.80 percent at 15,162.58.

On Tuesday, the index closed down by 127.53 points or 0.83 percent, at 15,285.17. The index scaled an intraday high of 15,323.16 and a low of 15,094.66.

The heavyweight Financial Index is decreasing 1.14 percent. Bank of Nova Scotia (BNS.TO) is losing 1.02 percent and Royal Bank of Canada (RY.TO) is weakening by 1.16 percent. Canadian Imperial Bank of Commerce (CM.TO) is down 0.77 percent and Toronto-Dominion Bank (TD.TO) is falling 0.65 percent. National Bank of Canada (NA.TO) is lower by 0.80 percent and Bank of Montreal (BMO.TO) is surrendering 1.17 percent.

The Capped Industrials Index is down 0.94 percent. Canadian Pacific Railway Limited (CP.TO) is falling 1.33 percent. Finning International (FTT.TO) is declining 2.81 percent and Air Canada (AC.TO) is falling 2.40 percent. WestJet Airlines (WJA.TO) is slipping 0.86 percent.

Canadian National Railway (CNR.TO) is losing 0.44 percent after it reported an 11% jump in adjusted net income at C$1,102 million for the third quarter of current financial year, compared to year-ago quarter. Adjusted earnings per share increased by 15% to C$1.50, the company said.

The Capped Materials Index is down 1.13 percent. Agnico Eagle Mines (AEM.TO) is falling 0.97 percent and Franco-Nevada (FNV.TO) is surrendering 0.91 percent. Nutrien (NTR.TO) is declining 1.95 percent.

The Gold Index is decreasing 0.86 percent. Kinross Gold (K.TO) is lower by 0.82 percent and Goldcorp (G.TO) is losing 1.29 percent. Barrick Gold (ABX.TO) is declining 0.46 percent and IAMGOLD (IMG.TO) is down 1.56 percent. B2Gold (BTO.TO) is weakening by 1.39 percent and Yamana Gold (YRI.TO) is falling 0.59 percent. Eldorado Gold (ELD.TO) is surrendering 1.71 percent.

The Capped Information Technology Index is losing 0.59 percent. BlackBerry (BB.TO) is falling 1.87 percent and Sierra Wireless (SW.TO) is down 0.12 percent. Descartes Systems Group (DSG.TO) is lower by 0.39 percent.

The Capped Telecommunication Services Index is down 0.50 percent. BCE (BCE.TO) is lower by 0.59 percent and TELUS (T.TO) is losing 0.24 percent. Rogers Communications Inc. (RCI.B.TO) is falling 0.45 percent

The Energy Index is falling 0.19 percent. Encana (ECA.TO) is down 0.36 percent and Crescent Point Energy (CPG.TO) is losing 2.17 percent. Suncor Energy (SU.TO) is dropping 0.95 percent and Enbridge (ENB.TO) is down 1.39 percent.

Restaurant Brands International Inc. (QSR.TO) is dipping 0.35 percent after it announced that profit attributable to shareholders was US$133.6 million or 53 cents per diluted share for the third quarter, up from $91.4 million or 37 cents per diluted share a year ago.

On the economic front, Eurozone private sector activity grew at the slowest rate for over two years in October as an export-led slowdown continued to broaden-out to the service sector amid weak manufacturing performance.

The composite output index declined more-than-expected to 52.7 from 54.1 in September, flash data from the IHS Markit's purchasing managers' survey showed on Wednesday. The expected score was 53.9, which was the lowest score since September 2016.

Germany's private sector expanded at the slowest pace for almost three-and-a-half years in October with both the manufacturing and service sectors showing notable losses of momentum, flash data from IHS Markit revealed Wednesday.

The composite output index fell to a 41-month low of 52.7 from 55.0 in September. The score below its long-run average of 53.4 reflected weaker increases in both services and manufacturing output.

France's private sector expanded at a faster pace in October despite a slowdown in factory activity, flash data from IHS Markit showed Wednesday. The composite output index rose unexpectedly to 54.3 in October from 54.0 in September. The score was forecast to drop to 53.9.

France's factory confidence unexpectedly dropped for a second straight month in October, as manufacturers' view on their past activity deteriorated sharply, survey data from the statistical office INSEE showed Wednesday.

The manufacturing confidence indicator dropped to 104 from 107 in September. Economists had expected the reading to remain unchanged.

UK mortgage approvals declined to a 6-month low in September, monthly data from UK Finance showed Wednesday. The number of loans approved in September fell to 38,505 from 39,241 in August. This was the lowest since March.

In commodities, crude oil futures for November delivery are up 0.41 or 0.62 percent at $66.84 a barrel.

Natural gas for November is up 0.014 or 0.44 percent at $3.226 per million btu.

Gold futures for December are down 2.50 or 0.20 percent at $1,234.30 an ounce.

Silver for December is down 0.033 or 0.22 percent at $14.76 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2946899/canadian-stocks-are-falling-after-rate-hike-canadian-commentary.aspx)

For comments and feedback: contact editorial@rttnews.com

This article appears in: 401k , Insurance , Banking and Loans , Economy , Oil , Retirement
Referenced Symbols: ABX ,

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