Canadian Stocks Are Falling On Global Growth Concerns -- Canadian Commentary

(RTTNews) - The Canadian stock market is under pressure in early trade Thursday. Global markets are selling off after Chinese export and import data fell short of expectations. The disappointing report has investors fretting over the health of the global economy.

Nearly every Canadian sector is declining this morning, with the notable exception of gold. In an environment where traders are worried over the global economy, gold stocks benefit from their safe haven appeal.

Markets in Europe are trading solidly in negative territory Thursday. Disappointing Chinese trade data has hit the region hard. The data has raised concerns over global economic growth and has also driven shares of mining stocks lower.

Markets in the United States are also losing ground in early trade, largely due to the weak China data and the concerns it has raised.

The benchmark S&P/TSX Composite Index is down 83.48 points or 0.57 percent at 14,535.49.

On Wednesday, the index closed up 69.37 points or 0.48 percent, at 14,618.97. The index scaled an intraday high of 14,634.87 and a low of 14,529.06.

The Capped Healthcare Index is lower by 1.40 percent. Concordia Healthcare (CXR.TO) is falling 3.17 percent and Valeant Pharmaceuticals International (VRX.TO) is decreasing 2.19 percent. Extendicare (EXE.TO) is also slipping 1.62 percent.

The Capped Information Technology Index is falling 1.02 percent. BlackBerry (BB.TO) is losing 1.59 percent and Sierra Wireless (SW.TO) is declining 1.17 percent. Constellation Software (CSU.TO) is also down 1.33 percent.

The Capped Industrials Index is losing 0.81 percent. Canadian National Railway (CNR.TO) is lower by 1.04 percent and Canadian Pacific Railway (CP.TO) is falling 0.73 percent. Finning International (FTT.TO) is down 1.02 percent and AutoCanada (ACQ.TO) is declining 1.23 percent. Bombardier (BBD-B.TO) is dropping 2.26 percent.

The heavyweight Financial Index is decreasing 0.78 percent. Royal Bank of Canada (RY.TO) is down 0.32 percent and Bank of Nova Scotia (BNS.TO) is declining 0.83 percent. Bank of Montreal (BMO.TO) is lower by 0.43 percent and Canadian Imperial Bank of Commerce is losing 0.60 percent. Toronto-Dominion Bank (TD.TO) is weakening by 0.62 percent and National Bank of Canada (NA.TO) is surrendering 0.66 percent.

The Energy Index is down 0.74 percent. Crude oil prices are holding around $50 a barrel as traders await U.S. inventory data.

Yesterday, the American Petroleum Institute reported a 2.7 million build, the first increase in U.S. supplies in six weeks.

Cenovus Energy (CVE.TO) is losing 0.15 percent and Suncor Energy (SU.TO) is decreasing 0.54 percent. Imperial Oil (IMO.TO) is down 0.67 percent and Crescent Point Energy (CPG.TO) is weakening by 1.27 percent. Canadian Natural Resources (CNQ.TO) is falling 1.37 percent and Encana (ECA.TO) is declining 0.82 percent. Husky Energy (HSE.TO) is also dropping 1.69 percent.

The Capped Telecommunication Services Index is weakening by 0.59 percent. BCE (BCE.TO) is falling 0.85 percent and Manitoba Telecom Services (MBT.TO) is dipping 0.20 percent. Rogers Communication (RCI-B.TO) is decreasing 0.72 percent and TELUS (T.TO) is declining 0.63 percent.

The Capped Materials Index is down 0.48 percent. Silver Wheaton (SLW.TO) is declining 0.36 percent and Agrium (AGU.TO) is lower by 1.34 percent. Potash Corp. of Saskatchewan (POT.TO) is also weakening by 0.99 percent.

The Gold Index is rising 0.73 percent. Gold prices are higher Thursday morning, as traders continued to assess yesterday's Federal Reserve minutes.

Goldcorp (G.TO) is rising 0.95 percent and Barrick Gold (ABX.TO) is advancing 0.67 percent. B2Gold (BTO.TO) is climbing 2.57 percent.

Premium Brands (PBH.TO) is advancing 2.18 percent. The company has agreed to acquire Belmont Meat Products for $50 million.

Capstone Mining (CS.TO) is sinking 8.0 percent. The company announced that it produced 32K tonnes of copper in the third quarter.

Loblaw (L.TO), as Shoppers Drug Mart, has completed its acquisition of QHR for $3.10 in cash per share. The stock is dipping 0.05 percent.

First Majestic (FR.TO) said silver production rose 27% from a year ago. Shares are climbing 2.86 percent.

Denison Mines Corp. (DML.TO) announced it has executed a definitive agreement with ALX Uranium Corp. (AL.V) to acquire 80% ownership of the Hook-Carter property in exchange for stock. The stock is falling 1.67 percent.

On the economic front, a report from Statistics Canada this morning showed that the Canadian new housing price index increased 0.2 percent in August. Economists had been expecting an increase of 0.3 percent.

China's exports declined more than expected in September reflecting subdued global demand, data from the General Administration of Customs revealed Thursday.

Exports dropped notably by 10 percent in September from prior year, much bigger than the expected fall of 3.3 percent. Shipment had declined 2.8 percent in August.

At the same time, imports slid 1.9 percent annually, confounding expectations for an increase of 0.9 percent and reversing a 1.5 percent rise in August, which was the first increase in almost two years.

As a result, the trade surplus narrowed to $42 billion compared to the expected level of $53 billion.

German consumer price inflation accelerated to a 16-month high in September, final data from Destatis showed Thursday. Consumer prices advanced 0.7 percent year-on-year in September, in line with flash estimate and faster than the 0.4 percent increase seen in prior month. The latest inflation figure was the highest since May 2015, when it was at the same level.

House prices in the United Kingdom picked up steam in September, the latest survey from the Royal Institution of Chartered Surveyors showed on Thursday with an index score of +17. That's up from +13 in August and the three-year low of +5 in July. That reading immediately followed the Brexit vote and capped five straight months of decline.

First-time claims for U.S. unemployment benefits held steady in the week ended October 8th, the Labor Department revealed in a report on Thursday. The Labor Department said initial jobless claims came in at 246,000, unchanged from the previous week's revised level.

Economists had expected jobless claims to climb to 254,000 from the 249,000 originally reported for the previous week.

Import prices in the U.S. saw a modest uptick in the month of September, according to a report released by the Labor Department on Thursday. The report said import prices inched up by 0.1 percent in September after falling by 0.2 percent in August. The uptick in prices matched economist estimates.

The Labor Department also said export prices rose by 0.3 percent in September following a 0.8 percent drop in August. Export prices had been expected to edge up by 0.1 percent.

In commodities, crude oil futures for November delivery are down 0.11 or 0.22 percent at $50.07 a barrel.

Natural gas for November is down 0.031 or 0.97 percent at $3.179 per million btu.

Gold futures for December are up $8.70 or 0.69 percent at $1,262.50 an ounce.

Silver for December is up $0.035 or 0.20 percent at $17.54 an ounce.