Canadian Stocks Are Falling On Commodity Weakness -- Canadian Commentary

(RTTNews) - The Canadian stock market is losing ground in early trade Monday. Mining, gold and energy stocks are leading the way lower at the start of the week, as commodity prices head lower. Crude oil prices had dropped to around $43 a barrel on oversupply concerns.

The Canadian markets has been on an upward trend for the past 4 weeks, which has driven it to its highest level of the year. In addition to the commodity weakness, investors appear to be taking an opportunity to lock in some profits following the recent rally.

Markets in Europe are turning in a mixed performance Monday. The markets are paring early gains and many have now slipped into negative territory. Early strength was due to the better than expected German business sentiment report.

Markets in the United States are drifting lower in early trade Monday. While there has been no U.S. economic data this morning, investors are looking forward to a deluge of data in the coming days. Consumer confidence, durable goods orders and GDP are ahead later this week. Investors are also behaving cautiously ahead of the Bank of Japan and Federal Reserve meetings this week.

The benchmark S&P/TSX Composite Index is down 85.51 points or 0.59 percent at 14,515.15.

On Friday, the index closed up 34.83 points or 0.24 percent, at 14,600.66. The index scaled an intraday high of 14,605.25 and a low of 14,546.57.

The Gold Index is lower by 2.82 percent. Gold prices are falling Monday morning as the dollar strengthened ahead of a flood of economic data and the crucial Federal Reserve meeting.

Barrick Gold (ABX.TO) is dropping 3.74 percent and Kinross Gold (K.TO) is decreasing 3.50 percent. Eldorado Gold (ELD.TO) is declining 4.93 percent and Yamana Gold (YRI.TO) is losing 2.24percent. IAMGOLD (IMG.TO) is falling 2.14 percent and B2Gold (BTO.TO) is down 2.30 percent. Goldcorp (G.TO) is also weakening by 2.08 percent.

The Capped Materials Index is also down 2.09 percent. Agnico Eagle Mines (AEM.TO) is falling 3.33 percent and Franco-Nevada (FNV.TO) is losing 2.08 percent. Silver Wheaton (SLW.TO) is decreasing 3.11 percent and Agrium (AGU.TO) is weakening by 0.45 percent.

The Energy Index is down 1.78 percent. Crude oil prices are tumbling further Monday morning amid speculation global supplies will outpace demand for the rest of the year.

Cenovus Energy (CVE.TO) is lower by 1.66 percent and Imperial Oil (IMO.TO) is decreasing 1.46 percent. Encana (ECA.TO) is declining 2.40 percent and Canadian Natural Resources (CNQ.TO) is falling 1.73 percent. Enbridge (ENB.TO) is losing 0.51 percent. Suncor Energy (SU.TO) is surrendering 1.86 percent and Husky Energy (HSE.TO) is down 1.57 percent. Crescent Point Energy (CPG.TO) is also forfeiting 2.08 percent.

The Diversified Metal and Mining Index is declining 1.47 percent. First Quantum Minerals (FM.TO) is decreasing 2.00 percent and Teck Resources (TCK-B.TO) is losing 2.86 percent. Lundin Mining (LUN.TO) is falling 0.94 percent.

The Capped Healthcare Index is losing 0.15 percent. Concordia Healthcare (CXR.TO) is declining 2.35 percent and Extendicare (EXE.TO) is down 0.37 percent.

The heavyweight Financial Index is decreasing 0.12 percent. National Bank of Canada (NA.TO) is falling 0.16 percent and Bank of Nova Scotia (BNS.TO) is weakening by 0.14 percent. Toronto-Dominion Bank (TD.TO) is declining 0.07 percent.

The Capped Information Technology Index is climbing 0.62 percent. Sierra Wireless (SW.TO) is increasing 1.35 percent and Descartes Systems Group (DSG.TO) is adding 0.12 percent. BlackBerry (BB.TO) up 2.10 percent and Constellation Software (CSU.TO) is gaining 0.48 percent.

The Capped Telecommunication Services Index is up 0.41 percent. TELUS (T.TO) is advancing 0.32 percent and Rogers Communication (RCI-B.TO) is climbing 1.20 percent. Manitoba Telecom Services (MBT.TO) is also adding 0.23 percent.

Capital Power (CPX.TO) reported a net income loss of $23 million, but the company raised its dividend almost 7 percent. The stock is climbing 1.89 percent.

Fiera Capital Corp. (FSZ.TO) has closed its JV Transaction with Aquila Infrastructure Management. Shares are currently unchanged at $12.75.

On the economic front, Germany's business sentiment weakened in July as the 'Brexit' vote made businesses less optimistic about their future. Nonetheless, they assessed a slight improvement in the current situation. The business climate index fell less-than-expected to 108.3 in July from 108.7 in June, survey results from the Munich-based Ifo economic institute showed Monday. The expected score was 107.5.

U.K. industrial orders declined further in July, the Industrial Trends Survey from the Confederation of British Industry showed Monday. The total order books balance dropped to -4 percent in July from -2 percent in June. The export order books declined notably to -22 percent from -14 percent in the prior month.

British business confidence plunged to its lowest level in seven-and-a-half years, after the surprise "Brexit" vote, survey results from the Confederation of British Industry (CBI) showed Monday.

The quarterly CBI Industrial Trends survey showed that 52 percent of firms were less optimistic about the general business situation than three months ago, while 5 percent said they were more optimistic, giving a balance of -47.

That was the lowest figure since January 2009, when it was -64, the survey said. Optimism about export prospects for the year ahead also fell, down to -11.

In commodities, crude oil futures for August delivery are down 0.90 or 2.04 percent at $43.29 a barrel.

Natural gas for August is down 0.02 or 0.72 percent at $2.757per million btu.

Gold futures for August are down $9.70 or 0.73 percent at $1,313.70 an ounce.

Silver for September is down $0.269 or 1.37 percent at $19.42 an ounce.