Canadian Stocks Are Falling On Commodity Weakness -- Canadian Commentary

(RTTNews) - The Canadian stock market is down in early trade Monday, following the modest gains on Friday. Weak economic data from China overnight has soured the mood among investors globally. Fresh data from the country showed a decline in industrial profits, a further sign that the once-dynamic economy might be in significant trouble. Concerns over China have sparked weakness in commodity prices this morning.

Markets in Europe are significantly lower at the start of the new trading week. Markets in the United States are also under pressure this morning. China concerns are partly responsible for the weakness, but investors are also disappointed by the release of some weaker than expected U.S. housing data.

Consumer spending rose a little more than economists had predicted last month, according to new government statistics released Monday. This came despite a slower-than-expected expansion in income.

Data released by the U.S. Department of Commerce showed that personal spending rose by 0.4 percent in August. Economists had expected the figure to rise by 0.3 percent.

Personal income also increased during the month. The figures showed a 0.3 percent advance during August, below expectations of a 0.4 percent increase.

A measure of strength in the housing market unexpectedly declined for August, raising concerns that home sales figures might be poised for a decline in the near future. The National Association of Realtors revealed that its pending home index fell 1.5 percent in August. This came as a surprise to economists, who were generally expecting a 0.5 percent increase for the month.

The benchmark S&P/TSX Composite Index is down 164.95 points or 1.23 percent at 13,213.62.

On Monday, the index closed up 39.90 points or 0.30 percent, at 13,378.57. The index scaled an intraday high of 13,468.75 and a low of 13,350.66.

The Diversified Metal and Mining Index is sinking by 7.59 percent. HudBay Minerals (HBM.TO) is losing 8.17 percent and First Quantum Minerals (FM.TO) is down 11.52 percent. Capstone Mining (CS.TO) is declining by 6.52 percent and Sherritt International (S.TO) is lower by 7.41 percent. Lundin Mining (LUN.TO) is surrendering 5.16 percent and Teck Resources (TCK-A.TO) is falling by 6.09 percent.

The Capped Materials Index is down 3.23 percent. Franco-Nevada (FNV.TO) is falling by 1.09 percent and Agnico Eagle Mines (AEM.TO) is decreasing by 2.23 percent. Silver Wheaton (SLW.TO) is declining by 3.56 percent and Agrium (AGU.TO) is losing 3.74 percent. Potash Corp. of Saskatchewan is also weakening by 2.91 percent.

The Gold Index is decreasing by 2.48 percent. Kinross Gold (K.TO) is declining by 3.57 percent and Goldcorp (G.TO) is falling by 3.07 percent. Eldorado Gold (ELD.TO) is losing 3.36 percent and IAMGOLD (IMG.TO) is decreasing by 3.14 percent. Royal Gold (RGL.TO) is weakening by 3.15 percent and Barrick Gold (ABX.TO) is down 2.29 percent.

The Capped Health Care Index is declining by 3.23 percent. Valeant Pharmaceuticals International (VRX.TO) is falling by 0.38 percent and Concordia Healthcare (CXR.TO) is sinking by 11.27 percent.

The Energy Index is decreasing by 2.32 percent. Canadian Natural Resources (CNQ.TO) is declining by 2.29 percent and Enbridge (ENB.TO) is losing 1.56 percent. Encana (ECA.TO) is falling by 3.85 percent and Crescent Point Energy (CPG.TO) is surrendering 4.67 percent. Suncor Energy (SU.TO) is weakening by 1.31 percent and Cenovus Energy (CVE.TO) is down 3.37 percent. Canadian Oil Sands (COS.TO) is lower by 4.92 percent and Pacific Exploration & Production (PRE.TO) is decreasing by 3.91 percent.

The Capped Industrials Index is down 1.12 percent. CAE (CAE.TO) is losing 0.86 percent and Bombardier (BBD-A.TO) is decreasing by 1.84. Canadian Pacific Railway (CP.TO) is falling by 0.64 percent and Canadian National Railway (CNR.TO) is lower by 0.74 percent. Air Canada (AC.TO) is declining by 4.12 percent.

AutoCanada (ACQ.TO) is dropping 5.30 percent. The company announced that it has agreed to buy the operating assets of Grove Dodge Chrysler Jeep Ltd.

The heavyweight Financial Index is falling by 0.93 percent. Royal Bank of Canada (RY.TO) is declining by 0.89 percent and Bank of Nova Scotia (BNS.TO) is lower by 0.87 percent. Toronto-Dominion Bank (TD.TO) is decreasing by 0.56 percent and National Bank of Canada (NA.TO) is down 1.23 percent. Bank of Montreal (BMO.TO) is weakening by 0.92 percent and Canadian Imperial Bank of Commerce (CM.TO) is losing 0.69 percent.

The Capped Information Technology Index is losing 0.82 percent. Constellation Software (CSU.TO) is down 0.81 percent and Sierra Wireless (SW.TO) is surrendering 1.43 percent. BlackBerry (BB.TO) is declining by 3.70 percent.

The Capped Telecommunication Services Index is higher by 0.39 percent. BCE (BCE.TO) is gaining 0.07 percent and TELUS (T.TO) is increasing by 1.08 percent. Manitoba Telecom Services (MBT.TO) is also up 0.39 percent.

DHX Media (DHX.TO) is climbing 1.65 percent, after its full year 2015 revenues rose 127 percent to $264.0 million, from $116.1 million in 2014. The company also increased its quarterly dividend by 7.1 percent.

On the economic front, China's industrial profits declined in August as product prices continued to decrease, the National Bureau of Statistics reported Monday. Industrial profits fell 8.8 percent in August from a year ago, following a 2.9 percent drop in July.

England/Wales house price growth eased to a 21-month low in August, data from Land Registry showed Monday. House prices advanced 4.2 percent year-on-year in August, which was the slowest growth since November 2013, when it climbed 3.5 percent. In July, house prices rose 4.6 percent and by 4.9 percent in June.

In commodities, crude oil futures for October delivery are down $0.62 or 1.36 percent at $45.08 a barrel.

Natural gas for October is up 0.054 or 2.11 percent at $2.618 per million btu.

Gold futures for December are down $12.00 or 1.05 percent at $1,133.60 an ounce.

Silver for December is down $0.506 or 3.35 percent at $14.605 an ounce.