(RTTNews.com) - The Canadian stock market got off to a positive start Monday, but has since slipped back near the flat line after early gains eroded. Information technology and gold stocks are under pressure this morning, while energy and financial stocks are providing some support.
The majority of the European markets are trading modestly to the downside Monday, pulling back from six-week highs. Mining stocks are under pressure as metal prices weaken on concerns over slowing growth in China.
Markets on Wall Street are struggling at the start of the new trading week. Traders appear reluctant to make any significant moves ahead of the Federal Reserve's monetary policy announcement on Wednesday.
The benchmark S&P/TSX Composite Index is down 3.92 points or 0.02 percent at 16,390.03.
On Friday, the index closed down by 61.78 points or 0.38 percent, at 16,393.95. The index scaled an intraday high of 16,489.06 and a low of 16,361.31.
The Capped Information Technology Index is losing 2.66 percent. BlackBerry (BB.TO) is falling 3.06 percent and Sierra Wireless (SW.TO) is weakening by 0.74 percent. Descartes Systems Group (DSG.TO) is down 1.82 percent and Constellation Software (CSU.TO) is sinking 4.57 percent
The Capped Materials Index is down 0.23 percent. Agnico Eagle Mines (AEM.TO) is decreasing 0.37 percent and Nutrien (NTR.TO) is weakening by 0.73 percent.
The Gold Index is decreasing 0.10 percent. Gold prices are little changed Monday, as investors looked ahead to key central bank meetings in the U.S., Japan and the U.K. this week for clues to the future direction of interest rates and the dollar.
Kinross Gold (K.TO) is declining 0.21 percent and Barrick Gold (ABX.TO) is falling 0.20 percent. Goldcorp (G.TO) is weakening by 0.12 percent and B2Gold (BTO.TO) is losing 1.21 percent.
The Energy Index is rising 0.75 percent. Crude oil prices are rising Monday after a draft proposal by federal regulators to rollback U.S. automobile efficiency requirements contended that new U.S. mileage targets would increase U.S. fuel consumption by 500,000 barrels per day.
Suncor Energy (SU.TO) is higher by 0.47 percent and Husky Energy (HSE.TO) is increasing 1.51 percent. Canadian Natural Resources (CNQ.TO) is up 0.85 percent and Enbridge (ENB.TO) is gaining 0.79 percent. Encana (ECA.TO) is climbing 2.47 percent and Imperial Oil (IMO.TO) is rising 1.58 percent. Crescent Point Energy (CPG.TO) is advancing 0.95 percent and Cenovus Energy (CVE.TO) is adding 0.77 percent.
The heavyweight Financial Index is increasing 0.19 percent. Royal Bank of Canada (RY.TO) is rising 0.21 percent and Canadian Imperial Bank of Commerce (CM.TO) is adding 0.22 percent. National Bank of Canada (NA.TO) is up 0.14 percent and Toronto-Dominion Bank (TD.TO) is gaining 0.25 percent. Bank of Nova Scotia (BNS.TO) is advancing 0.42 percent and Bank of Montreal (BMO.TO) is higher by 0.04 percent.
Photon Control Inc. (PHO.TO) has announced that the company has entered into an exclusive distribution agreement with Crowntech Photonics, a leading manufacturer and distributor of integrated fiber optic modules for the datacom and telecom industries in China. The stock is climbing 6.30 percent.
Excellon Resources Inc. (EXN.TO) reported second quarter revenue of $9.9 million, up 177% from $3.6 million in the year-ago quarter. Shares are rising 4.03 percent.
On the economic front, Eurozone economic confidence continued its downward trend hitting the lowest level in almost a year in July on weaker sentiment among retailers and firms, survey data from the European Commission showed Monday.
The economic sentiment index dropped slightly to 112.1 in July from 112.3 in the previous month. The score matched economists' expectations. The reading was the lowest since August 2017.
Germany's consumer price inflation slowed to a 3-month low in July, flash estimate from Destatis showed Monday. The consumer price index advanced 2 percent year-on-year in July, slightly slower than the 2.1 percent rise in June and 2.2 percent increase in May.
Inflation was expected to remain unchanged at 2.1 percent. This was the lowest rate since April, when prices rose 1.6 percent.
UK mortgage approvals increased to a five-month high in June, figures from Bank of England showed Monday. The number of mortgage approvals rose to 65,619 in June from 64,684 in May. This was the highest level since January, when approvals totaled 67,156.
In commodities, crude oil futures for August delivery are up 1.52 or 2.21 percent at $70.21 a barrel.
Natural gas for August is down 0.004 or 0.14 percent at $2.778 per million btu.
Gold futures for August are down 0.50 or 0.04 percent at $1,222.50 an ounce.
Silver for September is down 0.003 or 0.02 percent at $15.49 an ounce.
Read the original article on RTTNews (http://www.rttnews.com/2919980/canadian-stocks-are-paring-early-gains-canadian-commentary.aspx)
For comments and feedback: contact firstname.lastname@example.org