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Canadian Stocks Are Falling On Commodity Weakness - Canadian Commentary


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(RTTNews.com) - The Canadian stock market is losing ground in early trade Tuesday. A pullback in commodity prices is weighing on the market this morning, as well as the sell-off in global equity markets on concerns over a trade war.

Markets in Europe are trading solidly to the downside Tuesday. Profit warnings coupled with an escalating trade spat between the world's two biggest economies soured investors' appetite for risk.

Markets on Wall Street are also under pressure Tuesday morning. President Donald Trump has directed U.S. Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. Trump said the tariffs will go into effect if China refuses to change its unfair trade practices and insists on going forward with recently announced tariffs.

The benchmark S&P/TSX Composite Index is down 81.19 points or 0.50 percent at 16,302.44.

On Monday, the index closed up by 69.21 points or 0.42 percent, at 16,383.63. The index scaled an intraday high of 16,389.26 and a low of 16,253.30.

The Capped Materials Index is down 1.23 percent. Franco-Nevada (FNV.TO) is losing 0.28 percent and Nutrien (NTR.TO) is weakening by 1.84 percent.

The Capped Information Technology Index is losing 1.19 percent. Constellation Software (CSU.TO) is falling 0.97 percent and BlackBerry (BB.TO) is declining 2.92 percent.

The Capped Industrials Index is down 1 percent. Canadian Pacific Railway (CP.TO) is losing 1.09 percent and Canadian National Railway (CNR.TO) is surrendering 1.21 percent. Finning International (FTT.TO) is declining 2.24 percent and Air Canada (AC.TO) is falling 1.30 percent.

The heavyweight Financial Index is decreasing 0.32 percent. Toronto-Dominion Bank (TD.TO) is declining 0.34 percent and Bank of Montreal (BMO.TO) is down 0.12 percent. Royal Bank of Canada (RY.TO) is weakening by 0.19 percent and Bank of Nova Scotia (BNS.TO) is lower by 0.63 percent.

The Energy Index is falling 0.44 percent. Crude oil prices continue to fall Tuesday, part of a global sell-off sparked by trade tensions with the U.S. and most partners.

Crescent Point Energy (CPG.TO) is weakening by 0.83 percent and Cenovus Energy (CVE.TO) is falling 0.08 percent. Encana (ECA.TO) is declining 1.04 percent and Suncor Energy (SU.TO) is decreasing 0.25 percent. Husky Energy (HSE.TO) is down 0.40 percent and Imperial Oil (IMO.TO) is lower by 0.82 percent.

The Capped Healthcare Index is higher by 2.29 percent. Extendicare (EXE.TO) is gaining 1.22 percent and Valeant Pharmaceuticals International (VRX.TO) is rising 3.22 percent.

The Gold Index is increasing 0.09 percent. Gold prices dropped to the lowest since January Tuesday morning amid a widespread sell-off across asset classes.

Barrick Gold (ABX.TO) is gaining 0.65 percent and B2Gold (BTO.TO) is increasing 0.30 percent. Kinross Gold (K.TO) is rising 1.42 percent and Yamana Gold (YRI.TO) is advancing 3.30 percent. IAMGOLD (IMG.TO) is adding 0.52 percent.

On the economic front, the euro area current account surplus declined to a 10-month low in April, the European Central Bank reported Tuesday. The current account surplus fell to EUR 28.4 billion in April from EUR 32.8 billion in March. This was the lowest surplus since June 2017.

Eurozone construction output increased in April, after falling in the previous three months, data from Eurostat showed Tuesday. Construction output advanced 1.8 percent month-over-month in April, reversing a revised 0.2 percent drop in March.

While the Commerce Department released a report on Tuesday showing a much bigger than expected jump in new residential construction in the U.S. in the month of May, the report also showed a much steeper than expected drop in building permits.

The report said housing starts soared by 5.0 percent to an annual rate of 1.350 million in May after tumbling by 3.1 percent to a revised rate of 1.286 million in April. Economists had expected housing starts to climb by 1.8 percent to a rate of 1.310 million from the 1.287 million originally reported for the previous month.

Meanwhile, the Commerce Department said building permits plunged by 4.6 percent to an annual rate of 1.301 million in May after falling by 0.9 percent to a revised rate of 1.364 million in April.

Building permits, an indicator of future housing demand, had been expected to edge down by 0.1 percent to a rate of 1.350 million from the 1.352 million originally reported for the previous month.

In commodities, crude oil futures for July delivery are down 1.40 or 2.13 percent at $64.45 a barrel.

Natural gas for July is down 0.054 or 1.83 percent at $2.897 per million btu.

Gold futures for August are down 4.29 or 0.34 percent at $1,275.80 an ounce.

Silver for July is down 0.145 or 0.88 percent at $16.295 an ounce.


Read the original article on RTTNews (http://www.rttnews.com/2906480/canadian-stocks-are-falling-on-commodity-weakness-canadian-commentary.aspx)


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


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