Canadian Market Recovers After Weak Start

After drifting lower in early trades, led by losses in mining stocks due to weak gold prices, the Canadian stock market recovered and briefly emerged into positive territory by late morning on Tuesday.

Information technology shares are the other notable losers, while energy, financial and consumer discretionary stocks are faring fairly well.

Markets in Europe and the U.S. advanced today after the U.S. Commerce Department temporarily eased trade restrictions on Chinese tech giant Huawei.

Following the reprieve announced by the U.S. government, Google reversed its earlier decision and announced it will continue to work with Huawei over the next 90 days.

The benchmark S&P/TSX Composite Index, which recovered to 16,411.65 after falling to a low of 16,354.31 earlier, is now down 14.59 points, or 0.09%, at 16,387.16.

Among the stocks in the materials space, First Quantum Minerals (FM.TO) is declining 5.2% and Kinross Gold Corporation (K.TO) is down 1.1%. Barrick Gold Corporation (ABX.TO) is down nearly 1% and IAM Gold Corporation (IMG.TO) is lower by about 0.6%.

Industrial stock Bombardier Inc. (BBD.B.TO) is rising more than 3%.

Energy stocks Encana Corporation (ECA.TO), Baytex Energy (BTE.TO), Whitecap Resources (WCP.TO) and Suncor Energy (SU.TO) are up with solid gains.

In the financial space, Royal Bank of Canada (RY.TO) and Bank of Nova Scotia (BNS.TO) are up with modest gains and Toronto-Dominion Bank (TD.TO) is up marginally, while Canadian Imperial Bank of Commerce (CM.TO) is rising 1.6%. Manulife Financial Corporation (MFC.TO) is gaining about 1.3%.

U.S. stocks are up this morning and the major averages have all posted notable gains. The temporary reprieve to Huawei triggered the upside for the market.

The Dow is gaining about 0.6% and the S&P 500 is up 0.88%, while the Nasdaq is rising 1.12%.

The U.S. Commerce Department issued a temporary license authorizing specific, limited engagement in transactions involving the export, re-export, and transfer of items to Huawei for 90 days.

Commerce Secretary Wilbur Ross said the temporary reprieve grants “operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services.”

“In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks,” he added.

In commodities, crude oil futures for June pared early gains and are down $0.07, or 0.11%, at $63.03 a barrel.

Gold futures for June are down $3.50, or 0.27%, at $1,273.80 an ounce.

Silver futures for are declining $0.015, or 0.1%, at $14.430 an ounce, while Copper futures for July are down marginally at $2.7250 per pound.

Stocks are dipping as Trump’s ‘meddling’ fuels market anxiety

  • US futures and European stocks are slipping. 
  • “Trump’s meddling is almost single-handedly driving the markets right now,”says Jasper Lawler of London Capital Group.
  • “The president’s almost haphazard approach, of sounding optimistic over trade talks before turning confrontational, is creating high levels of uncertainty and volatility,” he said.

European equities and US futures dipped on Thursday as anxious investors reacted to US President Donald Trump’s capricious trade rhetoric as well as disappointing economic data.

Traders remain uncertain of the potential for a US-China trade agreement, after Trump claimed the Asian nation “broke the deal” and hiked tariffs on $200 billion worth of Chinese imports last week, then downplayed the dispute as a “little squabble” and said a deal “could absolutely happen” after China retaliated with duties on $60 billion of US goods this week.

The president has also imposed sanctions on Chinese telecom titan Huawei, but signaled he might delay tariffs on automobiles for six months. 

“Trump’s meddling is almost single-handedly driving the markets right now,” said Jasper Lawler, head of research at London Capital Group.

“The president’s almost haphazard approach, of sounding optimistic over trade talks before turning confrontational, is creating high levels of uncertainty and volatility.”

Market sentiment wasn’t helped by a 0.2% dip in US retail sales in April — a sharp reversal from 1.7% growth in March — as Americans spent less on cars, clothing, electronics, and appliances. The disappointing data came after China reported slower growth in retail sales and industrial production.

As geopolitical concerns jostle with a strong labor market and recent stock-market gains in people’s minds, “the US consumer is not willing to spend more,” said Konstantinos Anthis, head of research at ADSS.

“This could become a self-fulfilling prophecy: lower spending leads to fewer sales, meaning less growth in the economy and potentially more layoffs from companies in the US, which could eventually lead towards recession.”

Here’s the market roundup as of 9.54 am (4.54 a.m. ET):

  • European equities drifted lower. The Euro Stoxx 50 and Germany’s DAX slid 0.2%, while Britain’s FTSE 100 dipped 0.1%.
  • Asian indexes were mixed with the Shanghai Composite up 0.6%, Japan’s Nikkei down 0.6%, and Hong Kong’s Hang Seng almost flat.
  • US stocks could fall after the open. The futures underlying the Dow Jones Industrial Average and S&P 500 were marginally down, and the Nasdaq was down 0.1%.
  • Oil prices have rallied with Brent and WTI crude both up about 0.8%.

TSX Snaps 4-day Losing Streak, Settles Notably Higher

The Canadian stock market ended on a firm note on Friday, snapping a four-day losing streak, thanks to strong gains in energy, materials and cannabis shares.

A few stocks from industrials, information technology and financial sections too posted solid gains.

Upbeat U.S. jobs data aided sentiment. However, a disappointing report on U.S. service sector growth capped the market’s upside.

The benchmark S&P/TSX Composite Index ended up 83.55 points, or 0.51%, at 16,494.43, about a couple of points off the day’s high of 16,496.63.

On Thursday, the index ended down 91.87 points, or 0.56%, at 16,410.88. The index lost 0.72% in the week.

Among energy stocks, Suncor Energy (SU.TO) gained about 2%, Encana Corporation (ECA.TO) moved up 3.3% and Parex Resources (PXT.TO) advanced by 2.15%.

Baytex Energy Corp. (BTE.TO) soared nearly 13% on strong results. Crescent Point Energy (CPG.TO) gained about 4.3%, Whitecap Resources (WCP.TO) climbed 2.2% and ARC Resources (ARX.TO) gained 1.25%.

In the materials space, Nutrien (NTR.TO) gained 2.15%, Teck Resources (TECK.B.TO) jumped 3.6%, Agnico Eagle Mines (AEM.TO) advanced 1.7%, First Quantum Minerals (FM.TO) gained 3.2% and Methanex Corporation (MX.TO) ended 3.1% up.

Eldorado Gold Corporation (ELD.TO) shares plunged nearly 18% after the company reported adjusted net loss of $17.9 million ($0.11 per share) for the first quarter of 2019, compared to adjusted net earnings of $14.0 million ($0.09 per share) in the year-ago quarter.

Industrials stock Bombardier Inc. (BBD.B.TO) gained 3.2%, bouncing back after suffering a sharp setback in the previous session. Among financials, Manulife Financial Corporation (MFC.TO) gained 1.3%.

From the healthcare section, Hexo Corp. (HEXO.TO) gained 3.3% and CannTrust Holdings Inc. (TRST.TO) jumped 7.1%. Aphria Inc. (APHA.TO) declined nearly 3%.

Among the gainers in the information technology space, Shopify Inc. (SHOP.TO) climbed up 3.2%, BlackBerry (BB.TO) added 1.6%, Open Text Corporation (OTEX.TO) gained 1.1%, Descartes Systems Group (DSG.TO) and Sierra Wireless (SW.TO) both gained 1.3% and Celestica Inc. (CLS.TO) advanced by 1.8%.

U.S. stocks ended moderately higher on upbeat jobs data. The Dow advanced 0.8% and the S&P 500 gained 1%, while the Nasdaq surged up 1.6%.

Major European markets closed higher, with traders reacting positively to earnings updates from banks and U.S. jobs report.

Asian stocks turned in a mixed performance on Friday.

In commodities, West Texas Intermediate Crude oil futures for June ended up $0.13, at $61.94 a barrel.

Gold futures for June ended up $9.30, or 0.7%, at $1,281.30 an ounce.

Silver futures for July ended up $0.361, at $14.978 an ounce, while Copper futures for July settled at $2.8910 per pound, gaining $0.0395 for the session.