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Canadian Market Pares Early Losses

The Canadian stock market pared early losses and was trading flat a little before noon Tuesday, with investors largely making cautious moves, looking ahead to some key U.S. and Canadian earnings reports and crucial economic data.

Lingering worries about U.S.-China trade and weak commodity prices too weighed on sentiment and prompted investors to refrain from making significant moves.

The benchmark S&P/TSX Composite Index, which rose to 16,521.99 from an early low of 16,467.13, was down 3.10 points, or 0.02%, at 16,507.72 at noon.

Shares from healthcare, industrial and mining sections were among the notable gainers, while those from information technology and telecommunications sectors edged lower.

Financial, consumer discretionary and energy stocks were turning in a mixed performance.

Canopy Growth Corporation (WEED.TO) climbed up nearly 2.5%. Aurora Cannabis (ACB.TO) moved up 2%, Extendicare Inc. (EXE.TO) rose 1.6%, Hexo Corp. (HEXO.TO) gained 1.5% and Cronos Group (CRON.TO) advanced 1.3%.

CannTrust Holdings (TRST.TO), which posted strong gains on Monday after recording hefty losses in the previous week, declined more than 6% this morning.

In the industrial space, Canadian Pacific Railway (CP.TO) gained 2.6%. The company today declared a quarterly dividend of $0.83 per share on the outstanding Common Shares. The dividend is payable on October 28, 2019 to holders of record at the close of business on September 27, 2019, the company said.

Transcontinental Inc. (TCL.A.TO) gained 4.5%, Bombardier Inc. (BBD.B.TO) advanced 3.2%, Aecon Group (ARE.TO) climbed 2.75% and Cargojet Inc. (CJT.TO) added 2.2%. Air Canada (AC.TO), Ritchie Brothers (RBA.TO) and Canadian National Railway (CNR.TO) also posted solid gains.

Among mining stocks, Fortuna Silver Mines (FVI.TO) soared nearly 12%. First Majestic Silver (FR.TO), First Quantum Minerals (FM.TO), Pan American Silver Corp. (PAAS.TO) and Hudbay Minerals (HBM.TO) gained 5 to 6%.

Methanex (MX.TO), Oceanagold Corp. (OGC.TO), Nutrien (NTR.TO), MAG Silver (MAG.TO), Ivanhoe Mines (IVN.TO), West Fraser Timber (WFT.TO) and Wheaton Precious Metals (WPM.TO) also rose sharply.

In the energy section, Baytex Energy (BTE.TO), Precision Drilling Corp. (PD.TO) and Ensign Energy Services (ESI.TO) gained 1 to 2.3%, while Kelt Exploration (KEL.TO), PrairieSky Royalty (PSK.TO), Whitecap Resources (WCP.TO) and MEG Energy (MEG.TO) declined.

Among bank stocks, CDN Western Bank (CWB.TO) and Royal Bank of Canada (RY.TO) moved higher, while Bank of Nova Scotia (BNS.TO) and Toronto-Dominion Bank (TD.TO) declined marginally.

In economic news, a report from Statistics Canada showed that foreigners acquired $10.2 billion of Canadian securities in May, following two months of divestment.

Meanwhile, Canadian investment in foreign securities reached $4.1 billion in May, led by purchases of U.S. corporate bonds.

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