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Canadian Stocks Are Dropping As Energy Stocks Tumble - Canadian Commentary

The Canadian stock market is losing ground in early trade Tuesday, adding to yesterday's small loss. Energy stocks are leading the way lower this morning, as crude oil prices have slipped back to around $56 a barrel. Investors are concerned that U.S. production will outpace demand.

Markets in Europe have slipped into negative territory again Tuesday, after early gains quickly eroded. An increase in the value of the euro is weighing on stocks, after the release of some better than expected economic data.

Markets in the United States are also down slightly in early trade Tuesday. Lingering uncertainty about the outlook for the Republican tax reform proposal seems to be weighing on the markets as the House prepares to vote on their bill later this week.

The benchmark S&P/TSX Composite Index is down 81.41 points or 0.51 percent at 15,944.85.

On Monday, the index closed down 13.00 points or 0.08 percent, at 16,026.26. The index scaled an intraday high of 16,065.85 and a low of 15,999.10.

The Energy Index is falling 1.89 percent. Crude oil prices have slipped to around $56 a barrel Tuesday morning, ahead of U.S. inventory data.

Crescent Point Energy (CPG.TO) is dropping 4.33 percent and Imperial Oil (IMO.TO) is down 0.60 percent. Canadian Natural Resources (CNQ.TO) is weakening by 2.72 percent and Encana (ECA.TO) is losing 2.18 percent. Husky Energy (HSE.TO) is decreasing 1.33 percent and Enbridge (ENB.TO) is surrendering 0.91 percent. Suncor Energy (SU.TO) is declining 0.92 percent.

Cenovus Energy (CVE.TO) is lower by 2.26 percent. The company has reached a deal to sell its Weyburn oil facility for $940 million to Whitecap Resources (WCP.TO).

The Capped Healthcare Index is lower by 1.01 percent. Concordia International (CXR.TO) is falling 5.88 percent and Extendicare (EXE.TO) is down 0.55 percent. ProMetic Life Sciences (PLI.TO) is losing 2.21 percent.

The heavyweight Financial Index is decreasing 0.37 percent. Toronto-Dominion Bank (TD.TO) is down 0.15 percent and Bank of Nova Scotia (BNS.TO) is lower by 0.37 percent. Bank of Montreal (BMO.TO) is weakening by 0.54 percent and National Bank of Canada (NA.TO) is declining 0.14 percent. Canadian Imperial Bank of Commerce (CM.TO) is falling 0.28 percent and Royal Bank of Canada (RY.TO) is forfeiting 0.42 percent.

The Capped Materials Index is down 0.26 percent. Agrium (AGU.TO) is decreasing 0.41 percent and Potash Corp. of Saskatchewan (POT.TO) is losing 0.29 percent.

The Capped Information Technology Index is losing 0.22 percent. Sierra Wireless (SW.TO) is falling 0.24 percent and Constellation Software (CSU.TO) is dipping 0.05 percent. BlackBerry (BB.TO) is weakening by 0.29 percent.

The Capped Industrials Index is down 0.17 percent. Canadian Pacific Railway (CP.TO) is dropping 0.76 percent and Canadian National Railway (CNR.TO) is lower by 0.22 percent.

Bombardier (BBD.B.TO) is climbing 2.61 percent. The company has signed a letter of intent with Cairo-based EgyptAir Holding Company for up to 24 CS300 aircraft. This includes firm orders for twelve CS300 aircraft with purchase rights for an additional 12 aircraft. The deal could be worth $2.2 billion.

The Gold Index is increasing 0.29 percent. Gold prices are little changed Tuesday morning, despite a weak U.S. dollar and lingering concerns about tax reform delays.

Barrick Gold (ABX.TO) is rising 0.45 percent and B2Gold (BTO.TO) is advancing 1.04 percent. IAMGOLD (IMG.TO) is climbing 0.96 percent.

The Capped Telecommunication Services Index is up 0.23 percent. BCE (BCE.TO) is gaining 0.21 percent and Rogers Communications (RCI-B.TO) is rising 0.58 percent.

Premium Brands Holdings (PBH.TO) said revenues rose sharply in the third quarter. Shares are sinking 7.45 percent.

Marijuana company Canopy Growth (WEED.TO) reported a quarter loss despite rising sales. The stock is falling 3.63 percent.

On the economic front, China's industrial production and retail sales growth decelerated in October and property investment cooled, as measures taken to curb excessive debt and factory pollution weighed on activity.

Industrial production grew 6.2 percent year-on-year in October, but slower than the 6.6 percent expansion seen in September, data from the National Bureau of Statistics showed Tuesday. This was also weaker than the expected growth of 6.3 percent.

Likewise, retail sales growth eased to 10 percent from 10.3 percent in September. Economists had forecast growth to improve to 10.5 percent.

The euro area economy expanded at a slightly slower pace, as initially estimated, in the third quarter, flash data from Eurostat showed Tuesday. Gross domestic product grew 0.6 percent sequentially, slightly slower than the 0.7 percent expansion seen a quarter ago.

Eurozone industrial production dropped for the first time in three months in September, data published by Eurostat showed Tuesday. Industrial production fell 0.6 percent month-on-month, reversing a 1.4 percent rise in August. The monthly decline came in line with expectations. This was the first decline since June.

Germany's economic confidence rose to a 6-month high in November, survey data from Mannheim-based think tank ZEW showed Tuesday.

The ZEW Indicator of Economic Sentiment for Germany rose to 18.7 in November from 17.6 in October. This was the highest score since May, when the reading was 20.6. Nonetheless, the score was below the expected level of 19.5.

Germany's economic growth accelerated in the third quarter, data published by the Federal Statistical Office showed Tuesday. Gross domestic product grew 0.8 percent sequentially, faster than the 0.6 percent expansion logged in the second quarter. The growth rate was forecast to remain at 0.6 percent.

Germany's inflation slowed as initially estimated in October, final data from Destatis showed Tuesday. The consumer price index rose 1.6 percent year-on-year following 1.8 percent climb in September. A similar slower rate was last seen in June.

UK inflation held steady at the strongest level in more than five years in October as higher cost of food was offset by cheaper motor fuel prices. Consumer prices climbed 3 percent year-on-year in October, the same pace as seen in September, the Office for National Statistics reported Tuesday. Inflation was expected to accelerate to 3.2 percent.

British house price inflation accelerated in September to the highest level in almost a year, figures from the Office for National Statistics showed Tuesday. The house price index climbed 5.4 percent year-over-year in September, faster than the 4.8 percent rise in August, which was revised down from a 5.0 percent increase reported earlier.

Producer prices in the U.S. increased by more than expected in the month of October, according to a report released by the Labor Department on Tuesday. The Labor Department said its producer price index for final demand climbed by 0.4 percent in October, matching the increase seen in September. Economists had expected prices to inch up by 0.1 percent.

In commodities, crude oil futures for December delivery are down 0.60 or 1.06 percent at $56.16 a barrel.

Natural gas for December is down 0.073 or 2.31 percent at $3.094 per million btu.

Gold futures for December are up 1.10 or 0.09 percent at $1,280.00 an ounce.

Silver for December is down 0.017 or 0.10percent at $17.03 an ounce.

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