TSX Extends Losing Streak As Trade Worries Weigh

(RTTNews) - The Canadian market started on a slightly positive note, retreated soon, but climbed higher in mid morning trade before it lost its way again as growth worries weighed.

Data showing a deterioration in Canada's manufacturing sector hurt as well.

Gold stocks had a great outing as the safe haven asset climbed higher, but despite their strong performance, the market settled weak as shares from energy and healthcare sections tumbled.

Technology stocks declined, in line with peers in the U.S. market where reports of antitrust investigations involving several big-name companies hit the sector.

The benchmark S&P/TSX Composite Index ended down by 21.60 points, or 0.13%, at 16,015.89, around 100 points from the day's high of 16,105.85. The index touched a low of 15,960.93 in the session.

Among the stocks in the materials index, Semafo (SMF.TO) soared more than 13%. Eldorado Gold (ELD.TO) ended nearly 12% up. Iamgold Corp. (IMG.TO), Kinross Gold Corp. (K.TO), MAG Silver Corp. (MAG.TO), Endeavous Mining Corp. (EDV.TO), Alamos Gold (AGI.TO), Ero Copper Corp. (ERO.TO) and Barrick Gold Corporation (ABX.TO) gained 5% - 10%.

Kirkland Lake Gold (KL.TO), Lundin Mining Corp. (LUN.TO), Norbord Inc. (OSB.TO), First Quantum Minerals (FM.TO) and Agnico Eagle Mines (AEM.TO) also posted strong gains.

Among the stocks in the Healthcare Index, Aurora Cannabis (ACB.TO) declined more than 6%. Canopy Growth Corporation (WEED.TO), Aphria Inc. (APHA.TO) and Cronos Group (CRON.TO) ended lower by 4 to 4.6%.

Hexo Corp. (HEXO.TO) declined 3.2%, while Bausch Health Companies (BHC.TO), Sienna Senior Living (SIA.TO) and CannTrust Holdings (TRST.TO) lost 1.4 to 1.6%. Knight Therapeutics Inc. (GUD.TO) shed about 1.05%.

In the energy space, Suncor Energy (SU.TO), Cenovus Energy (CVE.TO), Canadian Natural Gas (CNQ.TO), Enerplus Corp. (ERF.TO) and Crescent Point Energy (CPG.TO) lost 1 to 2.3%.

Information technology stocks Shopify (SHOP.TO), Descartes Systems (DSG.TO), Open Text Corporation (OTEX.TO), Enghouse Systems (ENGH.TO), Constellation Software (CSU.TO), CGI Group (GIB.A.TO) and Kinaxis Inc. (KXS.TO) lost 1 to 4.3%.

On the economic front, data from IHS Markit Canada showed that manufacturing activity in Canada deteriorated for a second month. The IHS Markit Manufacturing Purchasing Managers' Index dropped from 49.7 in April to 49.1 in May.

U.S. stocks ended lower on trade worries. The Nasdaq plunged 1.6% and the S&P 500 closed lower by 0.3%, while the Dow edged up by less than a tenth of a percent.

The Chinese government blamed the U.S. for the escalating trade dispute between the world's two largest economies.

China accused President Donald Trump's administration of continually changing its demands, arguing the setbacks in the talks were all the result of "U.S. breach of consensus and commitments, and backtracking."

At a press conference in Beijing on Sunday, Chinese Vice Commerce Minister Wang Shouwen denied Trump's claims that China had been the side seeking to renegotiate a nearly completed agreement.