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Canadian Stocks Are Falling After Holiday Break - Canadian Commentary

The Canadian stock market is losing ground in early trade Tuesday, after returning to action following the long holiday weekend. Gold and energy stocks are struggling this morning despite a slight uptick in commodity prices.

Markets in Europe are turning in a mixed performance Tuesday. The markets dropped into the red this morning, but have since staged a recovery. Investors continue to keep a close eye on the Italian budget, as well as Brexit developments.

Markets on Wall Street are struggling to find direction Tuesday morning. Upbeat economic data has pushed treasury yields higher in recent sessions, leading to concerns the Federal Reserve may raise interest rates more aggressively than previously anticipated.

The benchmark S&P/TSX Composite Index is down 35.45 points or 0.22 percent at 15,910.72.

On Friday, the index closed down by 60.50 points or 0.38 percent, at 15,946.17. The index scaled an intraday high of 16,028.04 and a low of 15,895.50.

The Capped Information Technology Index is losing 1.48 percent. BlackBerry (BB.TO) is falling 1.39 percent and Sierra Wireless (SW.TO) is dropping 2.35 percent. Constellation Software (CSU.TO) is weakening by 1.33 percent and Descartes Systems Group (DSG.TO) is declining 0.79 percent.

The Gold Index is decreasing 1.22 percent. Kinross Gold (K.TO) is lower by 1.12 percent and Goldcorp (G.TO) is adding 0.54 percent. IAMGOLD (IMG.TO) is up 0.41 percent and B2Gold (BTO.TO) is gaining 0.63 percent. Barrick Gold (ABX.TO) is surrendering 1.68 percent.

The Capped Materials Index is down 0.98 percent. Agnico Eagle Mines (AEM.TO) is losing 3.70 percent and Franco-Nevada (FNV.TO) is weakening by 1.75 percent.

The Energy Index is falling 0.84 percent. Cenovus Energy (CVE.TO) is weakening by 0.96 percent and Suncor Energy (SU.TO) is losing 0.07 percent. Encana (ECA.TO) is down 1.63 percent and Crescent Point Energy (CPG.TO) is declining 0.37 percent. Canadian Natural Resources (CNQ.TO) is dropping 2.54 percent and Husky Energy (HSE.TO) is decreasing 0.86 percent.

The Capped Industrials Index is down 0.55 percent. Air Canada (AC.TO) is declining 2.32 percent and WestJet Airlines (WJA.TO) is lower by 2.58 percent. Canadian Pacific Railway (CP.TO) is falling 0.42 percent and Finning International (FTT.TO) is surrendering 0.61 percent.

The Capped Telecommunication Services Index is down 0.22 percent. TELUS (T.TO) is falling 0.78 percent and BCE (BCE.TO) is lower by 0.44 percent.

Aurora Cannabis Inc. (ACB.TO) is climbing 3.59 percent. The company has applied to list its shares on the New York Stock Exchange. The shares are expected to trade in New York under the ticker symbol ACB, the same as its listing on the Toronto Stock Exchange. Aurora expects trading on the NYSE to start before the end of the month.

Canopy Growth Corporation (WEED.TO) is rising 4.70 percent after it announced it has completed a legal transfer of cannabis products to a research partner in the United States. This is the first export of legal cannabis products from Canada to the United States pursuant to an import permit issued by the federal United States Drug Enforcement Administration.

On the economic front, a report from Canada Mortgage and Housing Corp. this morning showed that Canadian housing starts came in at a seasonally adjusted rate of 188,683 units in September. Economists had expected a rate of 210,000 units.

German exports declined for a second straight month in August, defying expectations for an increase, preliminary data from the statistical office Destatis showed on Tuesday.

Merchandise exports fell a calendar and seasonally-adjusted 0.1 percent from July, when they decreased 0.8 percent. Economists had expected a 0.4 percent increase.

Imports dropped 2.7 percent after a 2.8 percent rise in July. Economists were looking for a 0.1 percent gain.

The trade surplus rose to EUR 17.2 billion in August from EUR 16.5 billion in the previous month. Economists had predicted a surplus of EUR 16.2 billion.

In commodities, crude oil futures for November delivery are down 0.20 or 0.27 percent at $74.09 a barrel.

Natural gas for November is up 0.005 or 0.15 percent at $3.272 per million btu.

Gold futures for December are up 2.30 or 0.19 percent at $1,190.90 an ounce.

Silver for December is up 0.041 or 0.29 percent at $14.37 an ounce.

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