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Canadian Stocks Are Paring Early Losses - Canadian Commentary

The Canadian stock market got off to a weak start Tuesday, but has since pared its losses in early trade. Gold and energy stocks are trading in the red this morning, as commodity prices head lower. Traders are keeping a close eye on Wall Street this morning, as U.S. markets attempt to recover following the biggest one-day point drop ever on the Dow Jones Industrial Average.

Markets in Europe are down again Tuesday, extending their recent losing streak to seven sessions. Traders are keeping an eye on political developments in Germany as Chancellor Angela Merkel's conservatives and the Social Democrats embark on a final round of talks to clinch an agreement on a renewed "grand coalition."

Markets on Wall Street are turning in a mixed performance Tuesday, as they swing back and forth between gains and losses in early trade. The markets are attempting to stage a recovery following yesterday's sharp sell-off.

The benchmark S&P/TSX Composite Index is down 91.83 points or 0.60 percent at 15,242.98.

On Monday, the index closed down 271.22 points or 1.74 percent, at 15,334.81. The index scaled an intraday high of 15,584.12 and a low of 15,284.39.

The Gold Index is decreasing 1.24 percent. Gold prices are down slightly Tuesday morning, as stocks on Wall Street swing back and forth in early trade.

Yamana Gold (YRI.TO) is losing 0.98 percent and Kinross Gold (K.TO) is weakening by 1.36 percent. B2Gold (BTO.TO) is lower by 2.43 percent and Goldcorp (G.TO) is falling 1.01 percent.

The Capped Materials Index is down 1.44 percent. Franco-Nevada (FNV.TO) is declining 2.20 percent and Agnico Eagle Mines (AEM.TO) is falling 0.84 percent.

Nutrien (NTR.TO) is decreasing 4.05 percent after it said it expected full-year 2018 EBITDA of US$3.2 billion to US$3.7 billion.

The Capped Information Technology Index is losing 1.41 percent. BlackBerry (BB.TO) is declining 0.67 percent and Constellation Software (CSU.TO) is weakening by 1.32 percent. Descartes Systems Group (DSG.TO) is lower by 1.70 percent.

The Energy Index is falling 0.70 percent. Crude oil prices are falling Tuesday morning, extending big losses from the previous session amid turmoil in the global markets.

Canadian Natural Resources (CNQ.TO) is losing 0.32 percent and Husky Energy (HSE.TO) is weakening by 0.76 percent. Suncor Energy (SU.TO) is decreasing 0.07 percent and Cenovus Energy (CVE.TO) is dropping 0.85 percent.

The heavyweight Financial Index is decreasing 0.65 percent. Royal Bank of Canada (RY.TO) is losing 0.65 percent and Bank of Montreal (BMO.TO) is weakening by 0.13 percent. Canadian Imperial Bank of Commerce (CM.TO) is lower by 0.01 percent and Bank of Nova Scotia (BNS.TO) is surrendering 0.29 percent. Toronto-Dominion Bank (TD.TO) is declining 0.79 percent.

The Capped Telecommunication Services Index is down 0.51 percent. TELUS (T.TO) is weakening by 0.31 percent and BCE (BCE.TO) is dropping 0.55 percent.

The Capped Healthcare Index is higher by 2.72 percent. Valeant Pharmaceuticals International (VRX.TO) is up 4.98 percent and Extendicare (EXE.TO) is adding 1.54 percent.

The Capped Industrials Index is up 0.17 percent. Canadian Pacific Railway (CP.TO) is rising 1.15 percent and Air Canada (AC.TO) is higher by 1.30 percent. Finning International (FTT.TO) is adding 0.89 percent.

WestJet Airlines (WJA.TO) is losing 0.12 percent after it reported revenues rose 10 percent in the fourth quarter. Earnings were in line with estimates.

On the economic front, Germany's factory orders rebounded at a faster-than-expected pace at the end of 2017 on foreign demand.

Factory orders increased 3.8 percent month-on-month in December, in contrast to a revised 0.1 percent drop in November, data from Destatis showed Tuesday. This was the fastest growth in four months. Orders were expected to climb moderately by 0.8 percent.

Germany's construction sector expanded at the fastest pace in nearly seven years in January on mild weather, survey results from IHS Markit showed Tuesday. The Purchasing Managers' Index rose sharply to 59.8 in January, the highest since March 2011, from 53.7 in December. A score above 50 indicates expansion in the sector.

UK retail sales increased in January as rising food prices inflated spending, data from the British Retail Consortium showed Tuesday. Retail sales increased 0.6 percent on a like-for-like basis in January from the previous year, when they had decreased 0.6 percent. On a total basis, sales rose 1.4 percent in January.

In commodities, crude oil futures for March delivery are down 0.05 or 0.08 percent at $64.10 a barrel.

Natural gas for March is down 0.016 or 0.58 percent at $2.731 per million btu.

Gold futures for April are down 2.80 or 0.21 percent at $1,333.70 an ounce.

Silver for March is down 0.041 or 0.25 percent at $16.63 an ounce.

by RTTNews Staff Writer

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