(RTTNews.com) - The Canadian stock market is under pressure Thursday morning, reversing the gains of the previous session. Rising yields have made bonds more attractive to investors than riskier investments like equities.
Markets on Wall Street are losing ground Thursday morning after a jump in U.S. treasury yields has sapped buying interest. The ten-year yield spiked to its highest level in over seven years following the release of upbeat employment data.
Markets in Europe are trading in the red Thursday. Investors are keeping an eye on Italy, where the coalition government set budget deficit target of 2.1 percent of GDP for 2020 and 1.8 percent of GDP for the following year.
The benchmark S&P/TSX Composite Index is down 73.39 points or 0.46 percent at 15,998.66.
On Wednesday, the index closed up by 54.82 points or 0.34 percent, at 16,072.05. The index scaled an intraday high of 16,082.26 and a low of 16,006.23.
The Capped Information Technology Index is losing 1.04 percent. BlackBerry (BB.TO) is falling 2.95 percent and Sierra Wireless (SW.TO) is dipping 0.12 percent. Descartes Systems Group (DSG.TO) is declining 1.31 percent.
The Capped Telecommunication Services Index is down 0.46 percent. BCE Inc. (BCE.TO) is losing 0.88 percent and TELUS (T.TO) is falling 0.48 percent. Rogers Communications (RCI-B.TO) is lower by 0.12 percent.
The heavyweight Financial Index is decreasing 0.43 percent. Bank of Montreal (BMO.TO) is lower by 0.38 percent and Bank of Nova Scotia (BNS.TO) is losing 0.68 percent. Royal Bank of Canada (RY.TO) is weakening by 0.36 and Canadian Imperial Bank of Commerce (CM.TO) is down 0.58 percent. National Bank of Canada (NA.TO) is falling 0.54 percent and Toronto-Dominion Bank (TD.TO) is surrendering 0.18 percent.
The Energy Index is falling 0.07 percent. Cenovus Energy (CVE.TO) is weakening by 1.79 percent and Suncor Energy (SU.TO) is losing 0.10 percent. Imperial Oil (IMO.TO) is lower by 0.16 percent and Encana (ECA.TO) is down 0.69 percent. Crescent Point Energy (CPG.TO) is declining 0.23 percent.
The Gold Index is increasing 1.24 percent. Goldcorp (G.TO) is rising 0.45 percent and Yamana Gold (YRI.TO) is climbing 3.44 percent. Eldorado Gold (ELD.TO) is advancing 3.48 percent and Kinross Gold (K.TO) is higher by 1.68 percent. IAMGOLD (IMG.TO) is up 3.32 percent and Barrick Gold (ABX.TO) is adding 0.20 percent. B2Gold (BTO.TO) is gaining 3.87 percent.
The Capped Materials Index is up 0.59 percent. Agnico Eagle Mines (AEM.TO) is gaining 0.76 percent and Nutrien (NTR.TO) is adding 0.07 percent.
Canadian Pacific Railway (CP.TO) is climbing 2.26 percent after it said revenues are estimated to grow by 19% to an all-time record high of approximately $1.9 billion, in the third quarter. The company has raised its 2018 full-year guidance. It expects adjusted diluted EPS to grow in excess of 20%, increased from earlier guidance of low-double digit growth.
On the economic front, the German construction sector saw a loss of growth momentum in September, data from IHS Markit revealed Thursday. The construction Purchasing Managers' Index came in at 50.2 in September, down from 51.5 in August. A score above 50 indicates expansion.
With the release of the closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing a bigger than expected drop in first-time claims for U.S. unemployment benefits in the week ended September 29th.
The Labor Department said initial jobless claims fell to 207,000, a decrease of 8,000 from the previous week's revised level of 215,000. Economists had expected jobless claims to edge down to 213,000 from the 214,000 originally reported for the previous week.
After reporting a pullback in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Thursday showing a substantial rebound in factory orders in the month of August.
The Commerce Department said factory orders surged up by 2.3 percent in August after falling by a revised 0.5 percent in July. Economists had expected factory orders to jump by 2.1 percent compared to the 0.8 percent drop originally reported for the previous month.
In commodities, crude oil futures for November delivery are down 0.89 or 1.16 percent at $75.52 a barrel.
Natural gas for November is down 0.024 or 0.74 percent at $3.206 per million btu.
Gold futures for December are up 5.29 or 0.44 percent at $1,208.20 an ounce.
Silver for December is up 0.08 or 0.55 percent at $14.75 an ounce.
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