(RTTNews.com) - The Canadian stock market is losing ground in early trade Wednesday. Global equity markets are under pressure as trade war concerns have come back to the forefront. Beijing has vowed to take countermeasures after the U.S. proposed tariffs on an extra $200 billion of Chinese goods.
Markets in Asia pulled back overnight, the European markets are trading solidly in the red and markets on Wall Street are slipping in early trade.
Meanwhile, the Bank of Canada has raised their key interest rate Wednesday despite concerns that trade tensions could hurt the global economy. The BoC increased its target for the overnight rate to 1 1/2 per cent.
The Bank expects the global economy to grow by about 3 3/4 per cent in 2018 and 3 1/2 per cent in 2019, in line with the April Monetary Policy Report.
The benchmark S&P/TSX Composite Index is down 115.14 points or 0.70 percent at 16,433.58.
On Tuesday, the index closed up by 96.38 points or 0.59 percent, at 16,548.72. The index scaled an intraday high of 16,553.79 and a low of 16,481.26.
The Capped Materials Index is down 1.61 percent. Franco-Nevada (FNV.TO) is declining 0.12 percent and Agnico Eagle Mines (AEM.TO) is falling 1.25 percent. Nutrien (NTR.TO) is weakening by 2.32 percent.
The Gold Index is decreasing 1.03 percent. Gold prices are lower Wednesday morning amid an escalating trade war between the world's two largest economies.
Yamana Gold (YRI.TO) is declining 1.73 percent and Kinross Gold (K.TO) is lower by 1.17 percent. Goldcorp (G.TO) is weakening by 2.14 percent and Barrick Gold (ABX.TO) is losing 0.91 percent.
Eldorado Gold Corp. (ELD.TO) is rising 0.72 percent after it announced that it has named Philip Yee as Executive Vice President and Chief Financial Officer. Philip Yee will join Eldorado in September 2018.
The Capped Healthcare Index is lower by 0.73 percent. Valeant Pharmaceuticals International (VRX.TO) is falling 2.25 percent and Extendicare (EXE.TO) is down 0.28 percent. Concordia International (CXR.TO) is surrendering 1.89 percent.
The Energy Index is falling 0.86 percent. Crude oil prices are lower Wednesday morning after the API's weekly report showed U.S. crude oil stocks fell 6.8 million barrels.
The EIA reported this morning that U.S. crude inventories sank by 12.6 million barrels last week.
Cenovus Energy (CVE.TO) is falling 2.12 percent and Canadian Natural Resources (CNQ.TO) is losing 1.55 percent. Crescent Point Energy (CPG.TO) is dipping 0.39 percent and Encana (ECA.TO) is down 2.25 percent. Suncor Energy (SU.TO) is lower by 0.99 percent. Enbridge (ENB.TO) is declining 1 percent.
The Capped Industrials Index is down 0.81 percent. Canadian Pacific Railway (CP.TO) is losing 1.30 percent and Canadian National Railway (CNR.TO) is falling 1.08 percent. Finning International (FTT.TO) is weakening by 0.75 percent and WestJet Airlines (WJA.TO) is declining 1.44 percent. Air Canada (AC.TO) is decreasing 1.89 percent.
The heavyweight Financial Index is decreasing 0.51 percent. Royal Bank of Canada (RY.TO) is losing 0.68 percent and Bank of Montreal (BMO.TO) is lower by 0.27 percent. National Bank of Canada (NA.TO) is falling 0.60 percent and Bank of Nova Scotia (BNS.TO) is slipping 0.31 percent. Toronto-Dominion Bank (TD.TO) is declining 0.29 percent and Canadian Imperial Bank of Commerce (CM.TO) is surrendering 0.45 percent.
The Capped Information Technology Index is losing 0.53 percent. BlackBerry (BB.TO) is falling 1.44 percent and Sierra Wireless (SW.TO) is surrendering 0.38 percent. Constellation Software (CSU.TO) is declining 0.74 percent and Descartes Systems Group (DSG.TO) is down 0.60 percent.
On the economic front, Producer prices in the U.S. increased by slightly more than expected in the month of June, according to a report released by the Labor Department on Wednesday.
The Labor Department said its producer price index for final demand rose by 0.3 percent in June after climbing by 0.5 percent in May. Economists had expected prices to edge up by 0.2 percent.
In commodities, crude oil futures for August delivery are down 0.67 or 0.90 percent at $73.44 a barrel.
Natural gas for August is up 0.019 or 0.68 percent at $2.807 per million btu.
Gold futures for August are down 4.00 or 0.32 percent at $1,251.40 an ounce.
Silver for September is down 0.137 or 0.85 percent at $15.95 an ounce.
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