Canadian Stocks Are Struggling As Oil Prices Fall - Canadian Commentary

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(RTTNews.com) - The Canadian stock market is losing ground in early trade Tuesday. The pullback in energy stocks is weighing on the overall market. Crude oil prices are retreating after rising above $70 a barrel on Monday.

Geopolitical concerns are also weighing on the markets ahead of U.S. President Donald Trump's announcement of his decision on the Iran nuclear deal. Trump is widely expected to withdraw from the agreement, which lifted sanctions on Iran in exchange for limits on the country's nuclear program.

Markets on Wall Street are dipping in early trade Tuesday. Markets in Europe are turning in a mixed performance Tuesday, but remain little changed overall.

The benchmark S&P/TSX Composite Index is down 16.23 points or 0.10 percent at 15,792.40.

On Monday, the index closed up 79.23 points or 0.50 percent, at 15,808.63. The index scaled an intraday high of 15,848.38 and a low of 15,759.74.

The Energy Index is falling 1.69 percent. Crude oil prices are lower Tuesday morning, easing from 4-year highs despite ongoing tensions between Iran and the U.S.

Encana (ECA.TO) is lower by 1.95 percent and Crescent Point Energy (CPG.TO) is declining 0.99 percent. Cenovus Energy (CVE.TO) is falling 2.45 percent and Enbridge (ENB.TO) is losing 0.47 percent. Canadian Natural Resources (CNQ.TO) is decreasing 2.72 percent and Suncor Energy (SU.TO) is surrendering 1.13 percent. Husky Energy (HSE.TO) is weakening by 1.25 percent and Imperial Oil (IMO.TO) is down 0.69 percent.

The Gold Index is decreasing 0.47 percent. Gold prices are losing ground Tuesday morning, as traders await U.S. President Trump's decision on the Iran nuclear deal.

Barrick Gold (ABX.TO) is losing 1.51 percent. Kinross Gold (K.TO) is weakening by 1.16 percent. Goldcorp (G.TO) is falling 1.20 percent and Eldorado Gold (ELD.TO) is lower by 0.78 percent. B2Gold (BTO.TO) is down 0.54 percent.

IAMGOLD (IMG.TO) is gaining 6.15 percent after the company reported first quarter EPS of $0.09.

The Capped Telecommunication Services Index is down 0.43 percent. TELUS (T.TO) is losing 0.26 percent and Rogers Communications (RCI-B.TO) is falling 0.79 percent. BCE (BCE.TO) is weakening by 0.19 percent

The Capped Materials Index is down 0.08 percent. Franco-Nevada (FNV.TO) is falling 0.78 percent.

The Capped Healthcare Index is higher by 4.66 percent. Concordia International (CXR.TO) is gaining 2.63 percent and ProMetic Life Sciences (PLI.TO) is rising 1.35 percent.

Valeant Pharmaceuticals International (VRX.TO) is climbing 15.05 percent. The company reported that its net loss for the first-quarter ended March 31, 2018 was $2.693 billion, as compared to net income of $628 million for the same period in 2017.

In an effort to re-brand, Valeant will change its name to Bausch Health Companies Inc., effective in July 2018, and will trade under the symbol BHC.

The Capped Information Technology Index is gaining 0.78 percent. BlackBerry (BB.TO) is increasing 0.42 percent and Sierra Wireless (SW.TO) is rising 2.22 percent. Descartes Systems Group (DSG.TO) is adding 0.13 percent.

The heavyweight Financial Index is increasing 0.21 percent. Bank of Montreal (BMO.TO) is gaining 0.91 percent and Royal Bank of Canada (RY.TO) is advancing 0.13 percent. National Bank of Canada (NA.TO) is climbing 0.37 percent and Toronto-Dominion Bank (TD.TO) is adding 0.18 percent. Canadian Imperial Bank of Commerce (CM.TO) is adding 0.12 percent.

WestJet Airlines (WJA.TO) is sinking 9.41 percent after its disappointing first quarter report.

Aimia (AIM.TO) named Jeremy Rabe as its new president and CEO on Tuesday, effective immediately. Shares are rising 0.50 percent.

George Weston (WN.TO) raised its dividend, and reported a $180-million Q1 profit. The stock is up 0.08 percent.

Quebecor (QBR.B.TO) is climbing 3 percent after it announced that it is buying Caisse's stake in Quebecor Media for $1.69 billion.

On the economic front, China's exports recovered at a faster than expected pace in April and imports growth accelerated notably, data from General Administration of Customs revealed Tuesday.

Exports advanced 12.9 percent year-on-year in April, reversing a 2.7 percent drop in March. Economists had forecast an increase of 8 percent.

At the same time, imports growth accelerated to 21.5 percent from 14.4 percent in the previous month. Imports were expected to rise 16 percent.

Consequently, the trade surplus totaled $28.8 billion in April, above the expected level of $27.75 billion.

Germany's exports increased for the first time in four months in March, while imports continued to drop, figures from Destatis showed Tuesday.

Exports climbed 1.7 percent on month, in contrast to a 3.1 percent fall in February. Shipments were expected to grow 1.8 percent. This was the first increase since November 2017.

Meanwhile, imports slid 0.9 percent after declining 1.4 percent a month ago. Economists had forecast a 1 percent rise.

As a result, the trade surplus increased to a seasonally adjusted EUR 22 billion from EUR 19.4 billion in February.

Germany's industrial production recovered in March, provisional data from Destatis showed Tuesday. Industrial production grew by more-than-expected 1 percent month-on-month in March, reversing a 1.7 percent fall in February. Output was forecast to grow 0.8 percent.

UK house prices decreased for the first time in three months in April, data from the Lloyds bank subsidiary Halifax and IHS Markit showed Tuesday.

House prices declined 3.1 percent in April from March, when they rose 1.6 percent, reflecting the volatility in the short term monthly measure. Prices were forecast to fall marginally by 0.2 percent in April. This was the first decrease in three months.

In commodities, crude oil futures for June delivery are down 0.86 or 1.22 percent at $69.87 a barrel.

Natural gas for June is up 0.006 or 0.22 percent at $2.747 per million btu.

Gold futures for June are down 7.20 or 0.55 percent at $1,306.90 an ounce.

Silver for July is down 0.13 or 0.79 percent at $16.365 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2892402/canadian-stocks-are-struggling-as-oil-prices-fall-canadian-commentary.aspx)

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

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