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Canadian Shares Swinging Between Gains And Losses In Cautious Trade

After opening on a negative note amid worries about growth in the wake of reports showing a sharp surge in new coronavirus cases, the Canadian stock market bounced back into positive territory Thursday mid morning, but is struggling make any significant move up north by noon.

Weak economic data from the U.S., and the International Monetary Fund's latest report that gives a gloomy forecast for the global economy this year weigh on sentiment.

The benchmark S&P/TSX Composite Index, which rose to 15,374.58 after falling to 15,178.35 in early trades, is up 33.01 points or 0.24% at 15,331.39 around noon.

Energy stocks are moving higher, rebounding from losses in the previous session. A few stocks from financial and industrial sectors are finding good support. Healthcare and consumer discretionary stocks are weak.

Cenovus Energy (CVE.TO) is up nearly 2.5%. Baytex Energy (BTE.TO) and Canadian Natural Resources (CNQ.TO) are higher by 1.7% and 1.6%, respectively. Shopify Inc. (SHOP.TO) is gaining 1.5%.

Manulife Financial Corporation (MFC.TO) is rising 1% and Suncor Energy (SU.TO) is up 0.75%. Royal Bank of Canada (RY.TO), Canadian National Railway (CNR.TO) and Franco-Nevada Corporation (FNV.TO) are up with modest gains.

On the other hand, Fairfax Financial Holdings (FFH.TO), Norbord (OSB.TO), West Fraser Timber (WFT.TO), Ritchie Bros. Auctioneers (RBA.TO), BRP Inc. (DOO.TO) and Restaurant Brands International (QSR.TO) are down in negative territory, losing 1.3 to 4%.

BlackBerry Ltd. (BB.TO) shares are down 2%. The company reported a net loss of US$636 million or US$1.14 per share for the first quarter ended May 31. That included a $594-million goodwill impairment primarily related to its BlackBerry Spark reporting unit, which provides tailored cybersecurity options for enterprises.

On the economic front, average weekly wages in Canada increased 9.1% in April of 2020 over the same month in the previous year. In March, weekly average earnings had increased by a downwardly revised 3.2%.

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