Canadian Stocks Continue To Sink On China Concerns -- Canadian Commentary

(RTTNews) - The Canadian stock market is down sharply in early trade Monday, extending its losses from the previous 5 trading sessions. Every sector of the Canadian market its trading in the red, with the exception of Gold. Markets across the globe are under pressure following the sharp sell-off in the Chinese stock market. Weakness in commodities has also weighed on Canada's resource-heavy market.

China's benchmark Shanghai Composite index plunged 8.49 percent and finished at a five-month low. The hefty plunge came even as Beijing allowed its main state pension fund to invest up to 30 percent of its net assets in domestically-listed shares.

Earlier this month, China devalued yuan by the most in two decades to cushion its exports.

Markets in Europe are firmly in negative territory at the start of the new trading week, extending the weakness from last week. Concerns over the slowdown in China sparked the largest single session sell-offs in Europe in nearly 7 years.

Markets in the United States are also under pressure this morning. Following the weak performance of the previous trading week, U.S. equities are selling off sharply on continued China concerns.

The benchmark S&P/TSX Composite Index is down 329.60 points or 2.45 percent at 13,144.07.

On Friday, the index closed down 263.33 points or 1.92 percent, at 13,473.67. The index scaled an intraday high of 13,697.53 and a low of 13,468.72.

The Diversified Metal and Mining Index is sinking by 5.34 percent. HudBay Minerals (HBM.TO) is losing 6.77 percent and Capstone Mining (CS.TO) is falling by 11.43 percent. First Quantum Minerals (FM.TO) is surrendering 8.69 percent and Teck Resources (TCK-A.TO) is down 13.64 percent. Lundin Mining (LUN.TO) is lower by 6.84 percent and Sherritt International (S.TO) is declining by 8.57 percent.

The Capped Health Care Index is falling by 3.86 percent. Concordia Healthcare (CXR.TO) is declining by 8.73 percent and Extendicare (EXE.TO) is losing 1.16 percent. Valeant Pharmaceutical International (VRX.TO) is weakening by 2.63 percent.

The Capped Telecommunication Services Index is dropping by 3.17 percent. TELUS (T.TO) is down 2.43 percent and BCE (BCE.TO) is losing 3.93 percent. Manitoba Telecom Services (MBT.TO) is also lower by 3.06 percent.

The Energy Index is decreasing by 2.71 percent. The rout in crude oil prices continued Monday morning amid anxiety over stocks and the health of the global economy. Crude oil prices have dropped below $40 a barrel.

Crescent Point Energy (CPG.TO) is down 7.92 percent and Cenovus Energy (CVE.TO) is falling by 2.80 percent. Canadian Natural Resources (CNQ.TO) is lower by 2.31 percent and Encana (ECA.TO) is decreasing by 2.93 percent. Pacific Exploration & Production (PRE.TO) is sinking 18.84 percent and Canadian Oil Sands (COS.TO) is weakening by 5.19 percent. Suncor Energy (SU.TO) is surrendering 3.30 percent and Enbridge (ENB.TO) is tumbling by 3.25 percent.

The heavyweight Financial Index is weakening by 2.20 percent. Royal Bank of Canada (RY.TO) is declining by 2.83 percent and Toronto-Dominion Bank (TD.TO) is down 3.20 percent. Bank of Nova Scotia (BNS.TO) is falling by 3.70 percent and Bank of Montreal (BMO.TO) is losing 3.65percent. National Bank of Canada (NA.TO) is decreasing by 2.16 percent and Canadian Imperial Bank of Commerce (CM.TO) is surrendering 2.03 percent.

The Capped Information Technology Index is losing 1.97 percent. Sierra Wireless (SW.TO) is falling by 5.97 percent and BlackBerry (BB.TO) is down 3.40 percent. Descartes Systems Group (DSG.TO) is declining by 3.82 percent and Avigilon (AVO.TO) is sinking by 9.10 percent. Constellation Software (CSU.TO) is also tumbling by 14.53 percent.

The Capped Industrials Index is down 1.80 percent. Canadian Pacific Railway (CP.TO) is falling by 2.84 percent and Canadian National Railway (CNR.TO) is losing 2.52 percent. Finning International (FTT.TO) is lower by 2.62 percent and Air Canada (AC.TO) is decreasing by 5.75 percent. Bombardier (BBD-A.TO) is also declining by 9.70 percent.

AutoCanada (ACQ.TO) is surrendering 6.00 percent. The company announced that it has received approval from General Motors of Canada to acquire an 80 percent non-voting equity interest in the assets of Don Folk Chevrolet.

The Capped Materials Index is down 0.98 percent. Franco-Nevada (FNV.TO) is losing 1.69 percent and Silver Wheaton (SLW.TO) is declining by 3.81 percent. Agrium (AGU.TO) is lower by 2.65 percent and Potash Corp. of Saskatchewan is decreasing by 2.36 percent.

The Gold Index is rising by 0.91 percent. Gold is back in fashion due to its safe haven appeal, but prices were little changed Monday morning after another collapse in Chinese equities.

Yamana Gold (YRI.TO) is lower by 2.33 percent and B2Gold (BTO.TO) is losing 1.19 percent. Kinross Gold (K.TO) is declining by 2.02 percent and Royal Gold (RGL.TO) is falling by 1.08 percent. Goldcorp (G.TO) is decreasing by 0.88 percent and IAMGOLD (IMG.TO) is weakening by 0.81 percent. Eldorado Gold (ELD.TO) is tumbling by 3.12 percent and Barrick Gold (ABX.TO) is down 3.33 percent.

Baylin Technologies (BYL.TO) is falling by 0.66 percent. Randy Dewey has been appointed as its new President and Chief Executive Officer, effective immediately.

In commodities, crude oil futures for September delivery are down $1.65 or 4.08 percent at $38.80 a barrel.

Natural gas for September is up 0.013 or 0.49 percent at $2.689 per million btu.

Gold futures for December are up $1.40 or 0.12 percent at $1,161.00 an ounce.

Silver for September is down $0.441 or 2.88 percent at $14.86 an ounce.