Energy Sell-off Pulls TSX Lower -- Canadian Commentary

(RTTNews) - Canadian stocks fell for a second day in a row Tuesday, as significant weakness emerged in the energy sector.

The S&P/TSX Composite Index was down 52.38 points, or 0.35 percent, to 14,870.63, pulling back from last week's 16-month high.

At a speech to the House of Commons finance committee in Ottawa on Late Monday, the Bank of Canada Governor Stephen Poloz said the governing council actively discussed the possibility of further stimulus if needed.

"Monetary policy has room to maneuver and we are ready to use that room," he said.

However, Poloz also said that monetary policy is less effective when interest rates are low, and uncertainties keep the bank from cutting rates.

Energy stocks fell 1.6 percent. Dec. WTI oil fell 56 cents, or 1.1 percent, to settle at $49.96/bbl.

Consumer discretionary and consumer staples stocks were also sharply lower.

Loblaw's (L.TO) Shoppers Drug Mart has officially applied to carry medical marijuana in its 1,300+ stores across Canada, according to CBC reports. Shares were down fractionally.

Sherritt (S.TO) reported disappointing quarterly results on lower revenues. The stock rose 4.5 percent.

Brookfield Canada Office Properties (BOXC) revealed a profit for its third quarter that rose 18 percent from last year.