TSX Drifts Lower On Growth Concerns

(RTTNews) - The Canadian stock market ended notably lower on Monday, as worries about global economic outlook amid the ongoing trade dispute between the U.S. and China continued to weigh on sentiment.

While comments from U.S. President Donald Trump last Friday that fresh tariffs may not be imposed on Chinese goods has raised hopes about a solution to the trade dispute between the two countries, Vice President Mike Spence's comments that U.S. would not back down from its trade dispute until China changed its ways, rendered the mood cautious.

Brexit uncertainty, comments from two U.S. Federal Reserve officials that cautioned about global economic growth and a CIA report concluding that Saudi Arabia's powerful Crown Prince Mohammed bin Salman was behind the killing of journalist Jamal Khashoggi weighed as well.

Financial, materials, technology and consumer discretionary stocks declined. Energy stocks recovered after a weak start and ended on a mixed note.

The benchmark S&P/TSX Composite Index ended down 84.49 points, or 0.56%, at 15,071.01. The index scaled a low of 15,040.53 and a high of 15,170.82 in the session.

The Capped Financial Index shed nearly 1%. Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Montreal (BMO.TO), Canadian Imperial Bank Of Commerce (CM.TO) and National Bank of Canada (NA.TO) lost 0.6% - 1.3%. Bank of Nova Scotia (BNS.TO) edged down marginally.

The Capped Information Technology Index shed 4.4%. Shopify Inc. (SHOP.TO) tanked 11.3%. BlackBerry Limited (BB.TO), Descartes Systems Group Inc. (DSG) and Kinaxis Inc. (KXS.TO) ended lower by 4 to 4.7%, while Celestica Inc. (CLS.TO), Enghouse Systems (ENGH.TO), CGI Group Inc. (GIB.A.TO), Constellation Software Inc. (CSU.TO) and Open Text Corporation (OTEX.TO) shed 2 to 3%.

The Capped Healthcare Index ended 5.29% down. Bausch Health Companies Inc. (BHC.TO) and Canopy Growth Corporation (WEED.TO) both shed about 7%, Aurora Cannabis Inc. (ACB.TO) ended 4.4% down, Aphria Inc. (APHA.TO) declined by 6.1% and Extendicare Inc. (EXE.TO) eased 2.1%.

The Capped Materials Index lost nearly 1%. Nutrien (NTR.TO), Teck Resources (TECK.B.TO), First Quantum Minerals (FM.TO) and CCL Industries Inc. (CCL.B.TO) lost 1.5 to 3%, while Methanex Corporation (MX.TO) ended 5.4% down.

Among energy stocks, Suncor Energy (SU.TO) and Imperial Oil (IMO.TO) lost 1.2% and 1.1%, respectively. Husky Energy (HSE.TO) declined by 3.2%,

Vermilion Energy Inc. (VET.TO) advanced by 1.5%, Tourmaline Oil Corporation (TOU.TO) gained 3%, ARC Resources (ARX.TO) moved up 2.1% and PrairieSky Royalty (PSK.TO) surged up 2.7%.

Bombardier Inc. (BBD.B.TO) zoomed 24%. The company has bagged an order to supply 19 OMNEO Premium trains for the Hauts-de-France region's intercity lines.

In the consumer discretionary space, Restaurant Brands International Inc. (QSR.TO) lost nearly 3%, Dollarama Inc. (DOL.TO) ended 1.6% down, The Stars Group Inc. (TSGI.TO) declined 2.3%, Canada Goose Holdings Inc. (GOOS.TO) ended 4.2% down and BRP Inc. (DOO.TO) shed 5.7%.

U.S. stocks ended sharply lower amid concerns about global economic slowdown and on reports Apple has slashed production orders for all three of the iPhone models that were unveiled in September. The Nasdaq plunged as much as 3%, while the Dow and the S&P 500 declined by 1.6% and 1.7%, respectively.

In U.S. economic news, a report from the National Association of Home Builders showed a notable drop in homebuilder confidence in the month of November. The NAHB/Wells Fargo Housing Market Index plunged to 60 in November, after inching up by one point to 68 in October. Economists had expected the index to edge down to 67.

European markets failed to hold early gains and ended lower, tracking losses on Wall Street. In economic news from Europe, figures from the European Central Bank showed Eurozone's current account surplus to have decreased in September. The report said current account surplus fell to EUR 17 billion from EUR 24 billion in August.

Eurozone construction output increased in September after declining in the previous month. UK house prices were down sharply in November.

Asian markets ended mixed on Monday amid trade concerns.

In commodities, crude oil futures for January ended up $0.52, or 0.9%, at $57.20 a barrel.

Gold futures for December ended up $2.30, or 0.2%, at $1,225.30 an ounce, extending gains to a fourth straight session.

Silver futures for December ended up $0.021. at $14.403.00 an ounce, while Copper futures for December ended up $0.0005, at $2.7990 per pound.