Canadian Stocks Are Falling As Crude Prices Drop - Canadian Commentary

Shutterstock photo

(RTTNews.com) - The Canadian stock market is losing ground in early trade Friday as commodity prices weaken. The drop in crude oil prices is weighing heavily on the energy sector. Gold stocks are also struggling as the price of the precious metal falls.

Markets in Europe are turning in a mixed performance Friday, but remain little changed overall. Traders are in a cautious mood ahead of Sunday's Brexit summit. Negotiators are meeting today in an attempt to clear any final hurdles ahead of the summit.

Markets on Wall Street are struggling this morning. Trading volume is on the light side due to today's abbreviated session following yesterday's Thanksgiving Day holiday.

The benchmark S&P/TSX Composite Index is down 151.09 points or 1.00 percent at 14,940.49.

On Thursday, the index closed down by 3.44 points or 0.02 percent, at 15,091.58. The index scaled an intraday high of 15,105.60 and a low of 15,059.11.

The Energy Index is falling 3.81 percent. Imperial Oil (IMO.TO) is losing 3.32 percent and Husky Energy (HSE.TO) is declining 4.14 percent. Suncor Energy (SU.TO) is down 2.76 percent and Encana (ECA.TO) is lower by 4.45 percent. Canadian Natural Resources (CNQ.TO) is weakening 5.28 percent and Crescent Point Energy (CPG.TO) is sinking 7.99 percent. Cenovus Energy (CVE.TO) is decreasing 4.56 percent and Enbridge (ENB.TO) is surrendering 2 percent.

The Gold Index is decreasing 2.18 percent. Goldcorp (G.TO) is weakening 2.46 percent and Barrick Gold (ABX.TO) is falling 3.32 percent. IAMGOLD (IMG.TO) is down 4.91 percent and Yamana Gold (YRI.TO) is lower by 4.04 percent. Kinross Gold (K.TO) is losing 2.23 percent and B2Gold (BTO.TO) is declining 3.27 percent. Eldorado Gold (ELD.TO) is surrendering 3.53 percent.

The Capped Materials Index is down 2.30 percent. Franco-Nevada (FNV.TO) is declining 2.32 percent and Agnico Eagle Mines (AEM.TO) is falling 3.67 percent. Nutrien (NTR.TO) is losing 1.46 percent.

The heavyweight Financial Index is decreasing 0.24 percent. Bank of Nova Scotia (BNS.TO) is losing 0.31 percent and Royal Bank of Canada (RY.TO) is down 0.23 percent. Toronto-Dominion Bank (TD.TO) is declining 0.23 percent and Bank of Montreal (BMO.TO) is falling 0.27 percent. Canadian Imperial Bank of Commerce (CM.TO) is surrendering 0.66 percent and National Bank of Canada (NA.TO) is weakening 0.43 percent.

The Capped Industrials Index is down 0.22 percent. Bombardier (BBD-B.TO) is decreasing 8.80 percent and Finning International (FTT.TO) is losing 1.06 percent. Canadian National Railway (CNR.TO) is declining 0.40 percent and Canadian Pacific Railway (CP.TO) is lower by 0.38 percent.

On the economic front, Data from Statistics Canada showed that the CPI rose 0.3 percent on a seasonally adjusted monthly basis from September, when sales dropped 0.1 percent. Economists had expected a 0.1 percent rise.

Core inflation, excluding food and energy, improved 0.4 percent in October, in contrast with a -0.1 percent drop in the previous month.

The consumer price index rose 2.4 percent year-on-year in October following a 2.2 percent increase in September.

Separate data showed that Canadian retail sales grew more than expected in September, driven by food and beverage stores.

On a month-on-month basis, retail sales increased 0.2 percent after falling 0.1 percent in August. The reading was forecast to be flat.

Core retail sales rose 0.1 percent, in line with economists forecast. In August, core retail sales recorded a decline of 0.4 percent.

Eurozone private sector grew at the slowest pace in nearly four years in November, with slower expansions in both manufacturing and services, flash estimates from IHS Markit showed on Friday. The composite purchasing managers' index, or PMI, which combines manufacturing and services, fell to 52.4 from 53.1 in October. Economists had expected a score of 53.

Germany's private sector growth slowed more-than-expected in November to its lowest level in almost four years, survey data from IHS Markit showed on Friday. The composite purchasing managers' index, or PMI, which combines manufacturing and services, dropped to 52.2 from 53.4 in October. Economists had forecast a score of 53.1.

Germany's economy shrunk for the first time since early 2015 and at the fastest pace in nearly six years, mainly due to weak exports and car sales, latest figures from the Federal Statistical Office confirmed on Friday. Gross domestic product declined a seasonally and calendar-adjusted 0.2 percent quarter-on-quarter in the three months to September, after expanding 0.5 percent in the second quarter.

France's private sector growth slowed less-than-expected in November at the slowest pace in two months, survey data from IHS Markit showed on Friday. The composite Purchasing Managers' Index, or PMI, which combines manufacturing and services, fell to 54 from 54.1 in October. Economists had expected a reading of 53.9.

France's manufacturing confidence increase in November after easing in the previous two months, figures from the statistical office INSEE showed on Thursday. The manufacturing confidence index rose to 105 from 104 in October. Economists had expected the reading to remain unchanged.

In commodities, crude oil futures for December delivery are down 3.56 or 6.52 percent at $51.07 a barrel.

Natural gas for December is up 0.067 or 1.51 percent at $4.518 per million btu.

Gold futures for December are down 3.90 or 0.32 percent at $1,224.10 an ounce.

Silver for December is down 0.222 or 1.53 percent at $14.28 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2957345/canadian-stocks-are-falling-as-crude-prices-drop-canadian-commentary.aspx)

For comments and feedback: contact editorial@rttnews.com

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

More from RTT News


See All RTT news

Research Brokers before you trade

Want to trade FX?