(RTTNews.com) - The Canadian stock market is down slightly in early trade Friday. Weakness in the energy sector is weighing on the market this morning, as crude oil prices have dropped back below $70 a barrel. Reports have surfaced indicating that OPEC may end its supply quota plan with Russia.
After trading modestly to the upside during the first half of the day, the bulk of the European markets have now slipped into negative territory. Traders are keeping a close eye on Spain, after a vote of no confidence on Prime Minister Rajoy.
Markets on Wall Street got off to a weak start Friday, but have since pared their early losses. North Korea has responded to yesterday's summit cancelation by President Trump by saying they remain open to talks.
The benchmark S&P/TSX Composite Index is down 36.90 points or 0.23 percent at 16,076.72 .
On Thursday, the index closed down by 20.18 points or 0.13 percent, at 16,113.62. The index scaled an intraday high of 16,171.46 and a low of 16,086.03.
The Energy Index is falling 2.71 percent. Crude oil prices are falling Friday morning amid reports that Saudi Arabia wants to capitalize on the recent rise in energy prices.
Media reports say that Saudi Arabia and Russia are planning to raise oil output, which would be finalized as early as June.
Imperial Oil (IMO.TO) is lower by 1.15 percent and Canadian Natural Resources (CNQ.TO) is falling 2.54 percent. Encana (ECA.TO) is weakening by 3.65 percent and Crescent Point Energy (CPG.TO) is losing 4.96 percent. Cenovus Energy (CVE.TO) is surrendering 5.29 percent and Suncor Energy (SU.TO) is down 2.51 percent. Husky Energy (HSE.TO) is declining 3.23 percent and Enbridge (ENB.TO) is decreasing 1.13 percent.
The Capped Healthcare Index is lower by 1.56 percent. Extendicare (EXE.TO) is falling 1.13 percent.
The Capped Information Technology Index is gaining 0.74 percent. Sierra Wireless (SW.TO) is climbing 1.01 percent and BlackBerry (BB.TO) is rising 0.34 percent. Descartes Systems Group (DSG.TO) is adding 0.41 percent.
The Capped Industrials Index is up 0.77 percent. Canadian National Railway (CNR.TO)is rising 0.47 percent and Canadian Pacific Railway (CNR.TO) is climbing 1.37 percent. WestJet Airlines (WJA.TO) is increasing 0.89 percent and Air Canada (AC.TO) is up 1.40 percent.
The Gold Index is increasing 0.12 percent. Gold prices are slightly lower Friday, trimming strong gains from earlier in the week.
Yamana Gold (YRI.TO) is gaining 1.06 percent and Barrick Gold (ABX.TO) is advancing 0.35 percent. Eldorado Gold (ELD.TO) is higher by 0.68 percent.
The heavyweight Financial Index is increasing 0.11 percent. Bank of Nova Scotia (BNS.TO) is higher by 0.05percent and National Bank of Canada (NA.TO) is climbing 0.42 percent. Toronto-Dominion Bank (TD.TO) is gaining 0.66 percent.
CAE Inc. (CAE.TO) is surging 6.57 percent after its reported fourth quarter EPS of C$0.37 up from C$0.25 last year. Analysts expected EPS of C$0.32.
On the economic front, Germany's business confidence remained stable in May after falling for five straight months, survey data from the Munich-based Ifo Institute showed Friday. The business climate index came in at 102.2 in May, unchanged from April. This was the lowest reading since last May. The score was forecast to drop to 102 from April's originally estimated reading of 102.1.
The UK economy expanded at a weaker pace, as estimated, in the first quarter, second estimate from the Office for National Statistics showed Friday. Gross domestic product grew 0.1 percent sequentially in the first quarter, slower than the 0.4 percent expansion registered in the fourth quarter. The rate came in line with the estimate published on April 27.
UK mortgage approvals increased in April after falling in March, data from UK Finance showed Friday. The number of loans approved for house purchases increased to 38,049 in April from 37,606 in March.
With orders for transportation equipment pulling back sharply, the Commerce Department released a report on Friday showing a bigger than expected decrease in new orders for U.S. manufactured durable goods in the month of April.
The Commerce Department said durable goods orders slumped by 1.7 percent in April after spiking by an upwardly revised 2.7 percent in March. Economists had expected orders to drop by 1.4 percent compared to the 2.6 percent jump that had been reported for the previous month.
Consumer sentiment in the U.S. unexpectedly saw a modest deterioration in the month of May, according to revised data released by the University of Michigan on Friday. The report said the consumer sentiment index for May was downwardly revised to 98.0 from the preliminary reading of 98.8.
Economists had expected the consumer sentiment index to be unrevised at 98.8, which would have been unchanged from the final April reading.
In commodities, crude oil futures for June delivery are down 2.00 or 2.83 percent at $68.71 a barrel.
Natural gas for June is up 0.004 or 0.14 percent at $2.944 per million btu.
Gold futures for June are down 1.10 or 0.08 percent at $1,303.30 an ounce.
Silver for July is down 0.092 or 0.55 percent at $16.595 an ounce.
Read the original article on RTTNews (http://www.rttnews.com/2898943/canadian-stocks-are-struggling-as-crude-prices-tumble-canadian-commentary.aspx)
For comments and feedback: contact firstname.lastname@example.org