Canadian Stocks Are Pulling Back On Trade Concerns - Canadian Commentary

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(RTTNews.com) - The Canadian stock market is losing ground in early trade Friday. Trade concerns are weighing on investor sentiment this morning. The U.S. and Canada are approaching a September 30 deadline to reach an agreement for Canada to join a trade deal struck between the U.S. and Mexico.

U.S. Trade Representative Robert Lighthizer recently said the U.S. is prepared to move ahead with the deal replacing the North American Free Trade Agreement without Canada.

Markets in Europe are trading in the red Friday, but have recovered some ground in the last few hours. Bank stocks are under heavy pressure after Italy's new government offered a budget with a deficit target three times as big as the previous administration's goal.

Markets on Wall Street are nearly flat in early trade Friday.

The benchmark S&P/TSX Composite Index is down 73.18 points or 0.45 percent at 16,131.44.

On Thursday, the index closed up by 35.34 points or 0.22 percent, at 16,204.62. The index scaled an intraday high of 16,262.84 and a low of 16,193.04.

The Capped Telecommunication Services Index is down 0.86 percent. BCE Inc. (BCE.TO) is losing 1.15 percent and TELUS (T.TO) is falling 0.85 percent. Rogers Communications (RCI-B.TO) is lower by 0.80 percent.

The Capped Industrials Index is down 0.80 percent. Canadian National Railway (CNR.TO) is weakening by 1.51 percent and Canadian Pacific Railway (CP.TO) is falling 0.82 percent. Air Canada (AC.TO) is surrendering 0.40 percent and Finning International (FTT.TO) is lower by 0.10 percent.

The heavyweight Financial Index is decreasing 0.59 percent. Bank of Montreal (BMO.TO) is lower by 0.67 percent and Bank of Nova Scotia (BNS.TO) is losing 0.49 percent. Royal Bank of Canada (RY.TO) is weakening by 0.40 and Toronto-Dominion Bank (TD.TO) is surrendering 0.34 percent. Canadian Imperial Bank of Commerce (CM.TO) is down 0.54 percent.

The Energy Index is falling 0.58 percent. Canadian Natural Resources (CNQ.TO) is declining 1.11 percent and Cenovus Energy (CVE.TO) is weakening by 1.38 percent. Suncor Energy (SU.TO) is losing 1.52 percent and Imperial Oil (IMO.TO) is lower by 0.89 percent. Husky Energy (HSE.TO) is decreasing 0.74 percent and Enbridge (ENB.TO) is down 0.85 percent.

The Gold Index is increasing 0.38 percent. Goldcorp (G.TO) is rising 0.61 percent and Yamana Gold (YRI.TO) is climbing 2.22 percent. Eldorado Gold (ELD.TO) is rising 0.90 percent and B2Gold (BTO.TO) is advancing 2.13 percent.

The Capped Information Technology Index is gaining 0.24 percent. BlackBerry (BB.TO) is surging 11.68 percent after it reported non-GAAP revenue of $214 million and GAAP revenue of $210 million for the second quarter of fiscal 2019. Total non-GAAP software and services revenue of $197 million, up 1% year-over-year. Total GAAP software and services revenue was $193 million, up 4% year-over-year.

The Capped Materials Index is up 0.12 percent. Franco-Nevada (FNV.TO) is higher by 0.02 percent and Agnico Eagle Mines (AEM.TO) is gaining 0.88 percent.

Cargojet Inc. (CJT.TO) is rising 0.12 percent after it announced an amended and extended $400 million revolving 5-year credit facility pursuant to a series of amendments and an extension to its existing credit agreement with a syndicated lending group led by the Royal Bank of Canada.

On the economic front, data from Statistics Canada showed that the gross domestic product increased 0.2 percent on a seasonally adjusted monthly basis in July.

This was higher than expectations for a 0.1 percent rise. The economic growth stagnated in June.

Separate data showed that the industrial product price index dropped in August, driven by lower prices for primary non-ferrous metal products.

The IPPI dropped 0.5 percent in August following a 0.2 percent decrease in July.

Eurozone inflation accelerated in September on food and energy prices, flash data from Eurostat showed Friday. Inflation rose marginally to 2.1 percent, in line with expectations, from 2 percent a month ago.

German unemployment decreased notably in September, figures from the Federal Labor Agency revealed Friday. The number of unemployed declined 23,000 from the previous month to 2.3 million in September. Economists had forecast a moderate fall of 9,000. Unemployment had declined by 10,000 in August.

Germany's jobless rate remained unchanged in August, figures from Destatis revealed Friday. The unemployment rate came in at adjusted 3.4 percent, the same rate as seen in July.

France consumer price inflation slowed marginally in September, the provisional estimate from the statistical office Insee showed Friday. Inflation eased to 2.2 percent in September from 2.3 percent in August. The rate was expected to remain at 2.3 percent. Final data is due on October 11.

The UK economy expanded as initially estimated in the second quarter and the current account gap widened on visible trade deficit and primary income shortfall, data from the Office for National Statistics revealed Friday.

Gross domestic product grew 0.4 percent in the second quarter, unrevised from the previous estimate. The growth rate for the first quarter was revised down to 0.1 percent from 0.2 percent.

Due to higher visible trade deficit and primary income shortfall, the current account deficit widened by GBP 4.6 billion to GBP 20.3 billion in the second quarter. This was equivalent to 3.9 percent of GDP.

UK consumer confidence weakened in September amid heightened uncertainty surrounding Brexit, survey data from GfK showed Friday. The consumer sentiment index dropped to -9 in September from -7 in August. The expected score was -8.

Personal income in the U.S. rose by slightly less than expected in the month of August, according to a report released by the Commerce Department on Friday, while personal spending increased in line with economist estimates.

The report said personal income climbed by 0.3 percent in August, matching the increase seen in July. Economists had expected income to rise by 0.4 percent.

Meanwhile, the Commerce Department said personal spending rose by 0.3 percent in August after climbing by 0.4 percent in the previous month. Spending had been expected to increase by 0.3 percent.

Reflecting moderations in both output and new orders growth as well as weaker hiring sentiment, MNI Indicators released a report on Friday showing a bigger than expected slowdown in the pace of growth in Chicago-area business activity in the month of September.

MNI Indicators said its Chicago business barometer fell to 60.4 in September from 63.6 in August, although a reading above 50 still indicates growth. Economists had expected the barometer to edge down to 62.5.

In commodities, crude oil futures for October delivery are up 0.31 or 0.43 percent at $72.43 a barrel.

Natural gas for October is down 0.069 or 2.26 percent at $2.987 per million btu.

Gold futures for December are up 3.50 or 0.29 percent at $1,190.90 an ounce.

Silver for December is up 0.305 or 2.13 percent at $14.595 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2939281/canadian-stocks-are-pulling-back-on-trade-concerns-canadian-commentary.aspx)

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This article appears in: World Markets , 401k , Insurance , Banking and Loans , Oil , Retirement
Referenced Symbols: AEM ,

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