Canadian Stocks Have Slipped Into The Red - Canadian Commentary
(RTTNews.com) - The Canadian stock market got off to a positive start Friday, but has since pared its early gains and dropped into negative territory. Gold and financial stocks are struggling this morning, while energy stocks are rising after a rebound in crude oil prices.
After a positive start, the majority of the European markets are now clinging to small gains. Traders have been keeping a close eye on comments coming out of U.S. President Trump's UK visit. Trump warned that Prime Minister Theresa May's current 'soft-Brexit' proposal with the EU would probably "kill" any future trade deals with the United States.
Markets on Wall Street are little changed Friday morning. Traders were confronted with some mixed corporate earnings and seem unsure how to proceed following the volatility of the past few sessions.
The benchmark S&P/TSX Composite Index is down 10.09 points or 0.06 percent at 16,557.33.
On Thursday, the index closed up by 150.10 points or 0.91 percent, at 16,567.42. The index scaled an intraday high of 16,577.06 and a low of 16,449.08.
The Capped Healthcare Index is lower by 0.52 percent. Valeant Pharmaceuticals International (VRX.TO) is falling 1.32 percent and ProMetic Life Sciences (PLI.TO) is down 1.20 percent.
The Gold Index is decreasing 0.38 percent. Gold prices are losing ground Friday morning, extending yearly lows.
Kinross Gold (K.TO) is lower by 1.40 percent and Barrick Gold (ABX.TO) is losing 0.12 percent. B2Gold (BTO.TO) is falling 0.30 percent and IAMGOLD (IMG.TO) is surrendering 0.26 percent. Yamana Gold (YRI.TO) is weakening by 0.65 percent.
The heavyweight Financial Index is decreasing 0.27 percent. Royal Bank of Canada (RY.TO) is losing 0.15 percent and National Bank of Canada (NA.TO) is falling 0.50 percent. Bank of Nova Scotia (BNS.TO) is down 0.23 percent and Toronto-Dominion Bank (TD.TO) is declining 0.44 percent. Canadian Imperial Bank of Commerce (CM.TO) is dipping 0.11 percent.
The Capped Information Technology Index is losing 0.24 percent. Constellation Software (CSU.TO) is declining 1.23 percent and Descartes Systems Group (DSG.TO) is down 0.47 percent.
The Energy Index is rising 0.75 percent. Crude oil prices are rising Friday morning, trimming this week's significant losses.
Canadian Natural Resources (CNQ.TO) is gaining 0.37 percent and Crescent Point Energy (CPG.TO) is climbing 1.89 percent. Encana (ECA.TO) is up 1.77 percent and Suncor Energy (SU.TO) is higher by 0.64 percent. Husky Energy (HSE.TO) is advancing 0.45 percent and Imperial Oil (IMO.TO) is gaining 0.81 percent.
The Capped Industrials Index is up 0.33 percent. Canadian Pacific Railway (CP.TO) is gaining 1.23 percent and Canadian National Railway (CNR.TO) is rising 0.25 percent. WestJet Airlines (WJA.TO) is advancing 0.78 percent and Air Canada (AC.TO) is increasing 0.67 percent. Finning International (FTT.TO) is adding 0.89 percent.
On the economic front, China's exports increased more-than-expected in June and its trade surplus with the U.S. reached a record high in the midst of escalating trade disputes between the two countries.
Data from the General Administration of Customs showed that exports increased 11.3 percent year-on-year in June, bigger than the expected 9.5 percent, but slower than the 12.6 percent rise seen in May.
At the same time, annual growth in imports slowed to 14.1 percent. Economists had forecast a sharp growth of 21.3 percent after May's 26 percent increase.
Consequently, the overall trade surplus surged to $41.61 billion in June from about $24.9 billion in May. The surplus with the U.S. came in at record $28.97 billion, Reuters and Bloomberg reported, citing their own calculations.
Germany's wholesale price inflation accelerated further in June to the highest level in nine months, data from Destatis showed Friday. Wholesale prices climbed 3.4 percent year-on-year in June, faster than the 2.9 percent increase seen in May.
A report released by the Labor Department on Friday showed an unexpected decrease in U.S. import prices in the month of June, although the report also showed a slightly bigger than expected increase in export prices during the month.
The Labor Department said import prices fell by 0.4 percent in June after climbing by an upwardly revised 0.9 percent in May.
The pullback surprised economists, who had expected import prices to inch up by 0.1 percent compared to the 0.6 percent increase originally reported for the previous month.
Meanwhile, the Labor Department also said export prices rose by 0.3 percent in June following a 0.6 percent increase in May. Economists had expected export prices to edge up by 0.2 percent.
Reflecting concerns about the potential impact of tariffs, the University of Michigan released a report on Friday showing an unexpected deterioration in U.S. consumer sentiment in the month of July.
The preliminary report said the consumer sentiment index dipped to 97.1 in July from the final June reading of 98.2. Economists had expected the index to come in unchanged.
In commodities, crude oil futures for August delivery are up 0.43 or 0.61 percent at $70.76 a barrel.
Natural gas for August is down 0.031 or 1.11 percent at $2.766 per million btu.
Gold futures for August are down 5.20 or 0.42 percent at $1,241.40 an ounce.
Silver for September is down 0.202 or 1.26 percent at $15.775 an ounce.
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