Canadian Stocks Are Struggling In Early Trade -- Canadian Commentary

(RTTNews) - The Canadian stock market is trading slightly to the downside Friday morning. The Canadian market has turned in a lackluster performance this week, but is still holding near 11-month highs. Dismal British private sector data has investors in a negative mood this morning. In addition, crude oil prices have dropped to around $44 a barrel and most metal prices are heading lower.

Markets in Europe are turning in a mixed performance at the end of the week. The markets have fluctuated between small gains and losses as hopes for BOJ and ECB stimulus faded and a closely-watched survey of business managers showed U.K. private sector activity contracted at the steepest pace since early 2009 in July in the wake of the Brexit vote.

Markets in the United States are flat in early trade Friday. With no U.S. economic data to drive trading, investors appear to be sticking to the sidelines ahead of the Federal Reserve's two-day monetary policy meeting next week.

The benchmark S&P/TSX Composite Index is down 2.76 points or 0.02 percent at 14,563.07.

On Thursday, the index closed up 32.26 points or 0.22 percent, at 14,565.83. The index scaled an intraday high of 14,596.31 and a low of 14,531.09.

The Capped Healthcare Index is losing 1.47 percent. Concordia Healthcare (CXR.TO) is declining 2.39 percent and Extendicare (EXE.TO) is down 0.37 percent.

Valeant Pharmaceuticals International (VRX.TO) is weakening by 3.28 percent. The company has received a Complete Response Letter from the U.S. FDA regarding its New Drug Application for latanoprostene bunod ophthalmic solution, 0.024%, an intraocular pressure lowering single-agent eye drop for patients with open angle glaucoma or ocular hypertension.

The Diversified Metal and Mining Index is declining 0.82 percent. HudBay Minerals (HBM.TO) is decreasing 3.64 percent and Teck Resources (TCK-B.TO) is losing 2.23 percent. Lundin Mining (LUN.TO) is dipping 0.28 percent.

The Capped Materials Index is down 0.62 percent. Agnico Eagle Mines (AEM.TO) is falling 0.07 percent and Franco-Nevada (FNV.TO) is losing 0.27 percent. Silver Wheaton (SLW.TO) is decreasing 0.58 percent and Agrium (AGU.TO) is weakening by 0.53 percent.

The Gold Index is lower by 0.30 percent. Gold prices slipped Friday morning, trimming yesterday's gains while moving back near monthly lows.

Barrick Gold (ABX.TO) is dipping 0.11 percent and Kinross Gold (K.TO) is decreasing 1.50 percent. Eldorado Gold (ELD.TO) is declining 3.60 percent and Yamana Gold (YRI.TO) is losing 2.60 percent. IAMGOLD (IMG.TO) is falling 3.04 percent and B2Gold (BTO.TO) is down 1.61 percent.

The Energy Index is down 0.17 percent. Crude oil prices are stuck below $45 a barrel Friday morning amid speculation that Libya and Nigeria are ramping up production. Canadian oil sands are also getting back to normal after a devastating wildfire in Alberta earlier this year.

Cenovus Energy (CVE.TO) is lower by 0.22percent and Imperial Oil (IMO.TO) is decreasing 0.24percent. Encana (ECA.TO) is declining 1.85 percent and Canadian Natural Resources (CNQ.TO) is falling 0.46 percent. Enbridge (ENB.TO) is losing 0.60 percent. Suncor Energy (SU.TO) is slipping 0.36 percent. The company has for the first time set a specific goal for greenhouse gas reductions by 2030.

The Saskatchewan government says oil from a Husky Energy (HSE.TO) pipeline has spilled into the North Saskatchewan River.

Husky also said it swung to a net loss of C$196 million ($150 million) last quarter. The stock is now up 0.32 percent.

The heavyweight Financial Index is decreasing 0.04 percent. Bank of Montreal (BMO.TO) is weakening by 0.24 percent.

The Capped Telecommunication Services Index is up 0.78 percent. BCE (BCE.TO) is increasing 0.53 percent and TELUS (T.TO) is advancing 0.99 percent. Rogers Communication (RCI-B.TO) is climbing 1.78 percent

The Capped Information Technology Index is climbing 0.30 percent. Sierra Wireless (SW.TO) is increasing 0.04 percent and Descartes Systems Group (DSG.TO) is gaining 0.54 percent.

BlackBerry (BB.TO) announced that a federal jury ruled in favor of the company in a patent infringement case brought by Mobile Telecommunications LLC in the U.S. District Court for the Northern District of Texas. The stock is now up 0.89 percent.

The Capped Industrials Index is rising 0.09 percent. Canadian National Railway (CNR.TO) is increasing 0.84 percent and Canadian Pacific Railway (CP.TO) is up 0.67 percent. Air Canada (AC.TO) is gaining 0.91 percent.

On the economic front, data from Statistics Canada showed that retail sales increased 0.2 percent on a seasonally adjusted monthly basis in May, higher than forecasts for a flat reading. This follows a 0.9 percent gain in June.

Core retail sales, excluding motor vehicle and autos, improved 0.9 percent, beating expectations for a 0.3 percent rise. In July, the core retail sales surged up by 1.3 percent.

Separate data showed that Canada's consumer prices increased 0.2 percent month-on-month on an unadjusted basis in June, in line with expectations. This was slower than July's 0.4 percent growth.

Core inflation was flat on month - also unchanged from expectations and follows a 0.3 percent uptick in May.

Eurozone private sector expanded at the weakest pace in 18 months in July, but remained resilient in the face of the surprise "Brexit" vote and the terror attack in France. The flash composite output index fell to 52.9 in July, an 18-month low, from 53.1 in June, preliminary results of a survey by Markit showed Friday. Economists had forecast a weaker score of 52.5.

Germany's private sector expanded at the fastest pace in seven months in July, flash survey results from Markit showed Friday. The flash composite output index rose to 55.3 from 54.4 in June. The index reached its highest level in 2016 so far with both manufacturers and service providers reporting stronger expansions.

The French private sector stagnated in July as the growth in services was offset by a contraction in manufacturing, survey data showed Friday. The composite output index rose to neutral 50.0 in July from 49.6 in June, flash report from Markit revealed today.

The U.K. private sector activity contracted at the steepest pace since early 2009, after Britons voted to leave the European Union in a surprise move, a closely watched survey showed Friday. The flash composite output index fell to an 87-month low of 47.7 in July from 52.4 in June, according to flash survey results from Markit and the Chartered Institute of Procurement & Supply.

In commodities, crude oil futures for August delivery are down 0.68 or 1.52 percent at $44.07 a barrel.

Natural gas for August is up 0.089 or 3.31 percent at $2.781per million btu.

Gold futures for August are down $7.90 or 0.59 percent at $1,323.10 an ounce.

Silver for September is down $0.05 or 0.25 percent at $19.765 an ounce.