Canadian Stocks Are Falling Despite Strong Jobs Report - Canadian Commentary

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(RTTNews.com) - The Canadian stock market is losing ground in early trade Friday, despite a solid employment report. Trade war concerns and the turmoil in Turkey's banking sector are overshadowing the positive jobs report this morning.

Data from Statistics Canada showed that the employment rose by 54,100 jobs in July, following an addition of 31,800 jobs in June. Economists were expecting a job growth of 17,000.

The unemployment rate declined by 0.2 percentage points to 5.8 percent from 6 percent. The rate was forecast to fall to 5.9 percent.

Markets in Europe are trading in the red Friday due to the banking crisis in Turkey. The Turkish lira tumbled more than 14 percent in early trade to hit a new low amid a deepening rift with the United States and intensifying worries about the state of the economy.

Markets on Wall Street are under pressure in early trade Friday, amid concerns about rising tensions over the U.S. and Turkey due to the Turkish detention of U.S. pastor Andrew Brunson.

The benchmark S&P/TSX Composite Index is down 104.81 points or 0.64 percent at 16,312.17.

On Thursday, the index closed by points or percent, at 16, . The index scaled an intraday high of 16, . and a low of 16, . .

The Capped Healthcare Index is lower by 0.83 percent. Concordia International Corp. (CXR.TO) is falling 4.26 percent and ProMetic Life Sciences (PLI.TO) is losing 2.86 percent.

The Capped Telecommunication Services Index is down 0.74 percent. BCE Inc. (BCE.TO) is losing 0.69 percent and TELUS (T.TO) is weakening by 0.63 percent. Rogers Communications (RCI-B.TO) is falling 1.21 percent.

The Energy Index is falling 0.77 percent. Encana (ECA.TO) is losing 0.23 percent and Imperial Oil (IMO.TO) is falling 0.85 percent. Canadian Natural Resources (CNQ.TO) is declining 1.10 percent and Crescent Point Energy (CPG.TO) is weakening 0.83 percent. Cenovus Energy (CVE.TO) is down 1.32 percent and Suncor Energy (SU.TO) is lower by 0.67 percent.

The heavyweight Financial Index is decreasing 0.69 percent. Royal Bank of Canada (RY.TO) is falling 0.67 percent and Toronto-Dominion Bank (TD.TO) is losing 0.64 percent. Bank of Nova Scotia (BNS.TO) is declining 0.87 percent and Bank of Montreal (BMO.TO) is lower by 0.46 percent. National Bank of Canada (NA.TO) is surrendering 0.63 percent and Canadian Imperial Bank of Commerce (CM.TO) is down 0.33 percent.

The Capped Industrials Index is down 0.44 percent. Canadian Pacific Railway (CP.TO) is declining 0.35 percent and Canadian National Railway (CNR.TO) is falling 1.01 percent. Air Canada (AC.TO) is weakening 0.71 percent and Bombardier (BBD-B.TO) is losing 1.27 percent. Finning International (FTT.TO) is lower by 0.89 percent.

The Gold Index is increasing 0.58 percent. Goldcorp (G.TO) is climbing 0.70 percent and Barrick Gold (ABX.TO) is rising 0.92 percent. Yamana Gold (YRI.TO) is up 2.02 percent and B2Gold (BTO.TO) is increasing 2.49 percent. IAMGOLD (IMG.TO) is gaining 0.46 percent.

Cipher Pharmaceuticals Inc. (CPH.TO) reported total revenue was $7.0 million for second quarter of current financial year, compared to $9.9 million in the year-ago quarter. The stock is falling 2.17 percent.

Brookfield Real Estate Services Inc. (BRE.TO) said it posted a net loss of $3.7 million, or $0.39 per share for the three months ended June 30, 2018, compared to net earnings of $3.3 million or $0.35 per Share, in the year-ago quarter. Shares are sinking 12.16 percent.

Boralex Inc. (BLX.TO) is tumbling 6.92 percent after it reported a net loss attributable to shareholders of $28 million or $0.36 per share for the second quarter of 2018, compared with a net loss of $2 million or $0.03 per share for the same period a year earlier.

The company said that the increase in net loss between the two periods was primarily due to lower than expected production volume at existing facilities, $7 million in extraordinary acquisition costs and $12 million in impairment losses.

Cineplex Inc. (CGX.TO) reported net income of $24.4 million for the second quarter, as compared to $1.4 million in the year-ago quarter. Shares are rising 1.88 percent.

On the economic front, France's industrial and manufacturing output rebounded in June driven by a recovery in petroleum output, data from the statistical office Insee showed Friday. Industrial output climbed 0.6 percent month-on-month in June, reversing a 0.2 percent fall in May. Production was expected to gain 0.5 percent.

UK economic growth doubled in the second quarter driven by stronger growth in both services and construction sectors, first quarterly estimate from the Office for National Statistics showed Friday. Gross domestic product rose 0.4 percent, faster than the 0.2 percent expansion seen in the first quarter. The rate came in line with expectations.

UK industrial production expanded in June after falling for three straight months, data from the Office for National Statistics showed Friday. Industrial production climbed 0.4 percent month-on-month, reversing a 0.2 percent fall in May. This was the first increase in four months. Output was expected to climb 0.3 percent.

The UK's visible trade deficit narrowed in June, while the surplus in services grew, leading to a smaller total trade gap, data from the Office for National Statistics showed Friday. The visible trade deficit decreased to GBP 11.38 billion from GBP 12.52 billion in May. Economists had forecast a shortfall of GBP 11.90 billion.

Consumer prices in the U.S. showed a modest increase in the month of July, according to a report released by the Labor Department on Friday. The Labor Department said its consumer price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase in prices matched economist estimates.

In commodities, crude oil futures for September delivery are up 0.71 or 1.06 percent at $67.52 a barrel.

Natural gas for September is down 0.018 or 0.61 percent at $2.937 per million btu.

Gold futures for December are up 3.90 or 0.32 percent at $1,223.80 an ounce.

Silver for September is down 0.037 or 0.24 percent at $15.425 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2925763/canadian-stocks-are-falling-despite-strong-jobs-report-canadian-commentary.aspx)

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This article appears in: Stocks , World Markets , Politics , Oil
Referenced Symbols: ABX ,

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