Gold Stocks Shine, But TSX Falls In 2016 Debut -- Canadian Commentary

(RTTNews) - Canadian stocks fell on the first trading day of 2016, although weakness in Toronto was less pronounced than other global markets.

Rebonding gold stocks helped to offset losses among energy and finacial stocks, as investors shunned most equities amid concerns about the Chinese economy.

The S&P/TSX Composite Index dropped 82.20 points, or 0.64 percent, to 12,927.15, having lost about 12 percent in 2015.

Overnight, tChinese market dropped nearly 7 percent and was halted for the rest of the trading session as a newly launched circuit breaker mechanism kicked in for the first time.

China's manufacturing sector continued to contract in December on weak orders and a renewed fall in output.

The Energy Index was down 0.5 percent. Crude oil prices fell despite concerns that the rift between Iran and Saudi Arabia might disrupt supplies from the Middle East.

Saudi Arabia cut diplomatic ties with fellow OPEC member Iran on Sunday after its embassy in Tehran was attacked. Iranians were protesting the Saudi execution of prominent Shiite Muslim cleric Nemer al-Nemer.

In corporate news from the oil patch, Canadian Oil Sands (COS.TO) again urged shareholders to reject a takeover bid by Suncor (SU.TO).