Quantcast

Canadian Stocks Are Falling On Broad Weakness - Canadian Commentary


Shutterstock photo


(RTTNews.com) - The Canadian stock market is under pressure in early trade Tuesday. Global markets are struggling due to renewed concerns over the trade dispute between the U.S. and China.

The majority of the Canadian sectors are trading in the red this morning, with notable weakness in the energy and financial sectors. Meanwhile, gold stocks are providing some support as the price of the precious metal climbs.

Markets in Europe are trading in the red Tuesday. Brexit worries and renewed concerns over Italy's budget have dented investors' appetite for risk.

Markets on Wall Street are nearly flat in early trade Tuesday. After reaching a new trade deal with Canada and Mexico, President Trump said it is "too early to talk" with China about the escalating trade dispute between the two countries.

"Can't talk now because they're not ready," Trump said of China. "Because they have been ripping us for so many years, it doesn't happen that quickly."

The benchmark S&P/TSX Composite Index is down 108.66 points or 0.67 percent at 15,995.77.

On Monday, the index closed up by 31.29 points or 0.19 percent, at 16,104.43. The index scaled an intraday high of 16,193.06 and a low of 16,069.66.

The Energy Index is rising 1.62 percent. Canadian Natural Resources (CNQ.TO) is declining 1.51 percent and Cenovus Energy (CVE.TO) is weakening by 2.17 percent. Suncor Energy (SU.TO) is losing 1.08 percent and Imperial Oil (IMO.TO) is lower by 1.10 percent. Husky Energy (HSE.TO) is decreasing 2.97 percent and Enbridge (ENB.TO) is down 0.38 percent. Crescent Point Energy (CPG.TO) is surrendering 1.54 percent.

The Capped Information Technology Index is losing 1.21 percent. BlackBerry (BB.TO) is falling 1.51 percent and Sierra Wireless (SW.TO) is weakening by 3.08 percent. Constellation Software (CSU.TO) is down 2.03 percent and Descartes Systems Group (DSG.TO) is declining 1.93 percent.

The heavyweight Financial Index is decreasing 0.85 percent. Bank of Montreal (BMO.TO) is lower by 0.53 percent and Bank of Nova Scotia (BNS.TO) is losing 0.93 percent. Royal Bank of Canada (RY.TO) is weakening by 1.01 and Toronto-Dominion Bank (TD.TO) is surrendering 1.21 percent. Canadian Imperial Bank of Commerce (CM.TO) is down 0.77 percent and National Bank of Canada (NA.TO) is falling 0.53 percent.

The Capped Industrials Index is down 0.68 percent. Canadian National Railway (CNR.TO) is weakening by 1.23 percent and Canadian Pacific Railway (CP.TO) is falling 1.07 percent. Air Canada (AC.TO) is surrendering 1.26 percent and WestJet Airlines (WJA.TO) is lower by 1.20 percent.

The Capped Telecommunication Services Index is down 0.64 percent. BCE Inc. (BCE.TO) is losing 0.13 percent and TELUS (T.TO) is falling 0.94 percent. Rogers Communications (RCI-B.TO) is lower by 0.86 percent.

The Gold Index is increasing 2.79 percent. Goldcorp (G.TO) is rising 3.55 percent and Yamana Gold (YRI.TO) is climbing 4.40 percent. Eldorado Gold (ELD.TO) is advancing 5.13 percent and B2Gold (BTO.TO) is up 6.29 percent. Barrick Gold (ABX.TO) is gaining 2.66 percent and Kinross Gold (K.TO) is higher by 3.69 percent. IAMGOLD (IMG.TO) is adding 4.42 percent.

The Capped Materials Index is up 1.50 percent. Franco-Nevada (FNV.TO) is higher by 2.45 percent and Agnico Eagle Mines (AEM.TO) is gaining 3.57 percent.

Maple Leaf Foods Inc. (MFI.TO) is climbing 3.82 percent after it announced that it has signed a definitive agreement to acquire VIAU Foods, a Canadian market leader in premium Italian cooked, dry-cured and charcuterie meats for a purchase price of $215 million, including $30 million in Maple Leaf stock.

Thomson Reuters Corp. (TRI.TO) is down 0.33 percent after it announced the completion of the sale of a majority stake in its Financial & Risk unit to private equity firm Blackstone Group LP.

On the economic front, Euro area producer price inflation slowed for the first time in four months during August, preliminary data from the statistical office Eurostat showed on Tuesday.

Industrial producer prices on the domestic market rose 4.2 percent year-on-year following 4.3 percent in July, which was revised from 4 percent. Economists had expected a 3.80 percent increase. Inflation eased for the first time since April.

UK construction sector unexpectedly grew at the weakest pace in six months in September, as all three sub-sectors lost momentum, survey data from IHS Markit showed on Tuesday. The IHS Markit/CIPS UK construction purchasing managers' index fell to 52.1 from 52.9 in August. In contrast, economists had expected the index to rise to 53.1.

UK house prices logged steady growth in September, data from Nationwide Building Society showed Tuesday. House prices grew 2 percent year-on-year in September, the same rate as seen in August. Prices were expected to climb 1.9 percent.

In commodities, crude oil futures for November delivery are down 0.18 or 0.24 percent at $75.12 a barrel.

Natural gas for November is up 0.037 or 1.20 percent at $3.131 per million btu.

Gold futures for December are up 18.10 or 1.52 percent at $1,209.80 an ounce.

Silver for December is up 0.413 or 2.85 percent at $14.92 an ounce.


Read the original article on RTTNews (http://www.rttnews.com/2940228/canadian-stocks-are-falling-on-broad-weakness-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

Subscribe






See All RTT news











Research Brokers before you trade

Want to trade FX?