TSX Settles Modestly Lower

(RTTNews) - The Canadian stock market ended the final session of the year with modest losses, as investors stayed reluctant to create new positions on Tuesday despite signs of a revival in global economic growth.

With the U.S.-China phase one trade deal all set to be signed this month, and the latest data out of China showing an expansion in China's manufacturing sector, it is expected that the global economy will see a revival of sorts in the near to medium term.

The benchmark S&P/TSX Composite Index, which dropped to a low of 17,027.40, recovered to close at 17,063.43, but still posted a loss of 35.13 points, or 0.21%, for the session.

The index, which scaled a new all-time high at 17,230.58 last week, gained about 19.1% in 2019.

Cannabis shares rebounded after recent losses and contributed to the market's recovery from lower levels. The Capped Healthcare Index climbed up nearly 6%.

Energy, industrial, consumer discretionary and telecommunications shares turned in a mixed performance. Materials, financial and consumer staples shares closed mostly weak.

Cronos Group Inc. (CRON.TO) soared 15.5%, Aurora Cannabis (ACB.TO) gained 12%, Canopy Growth Corp (WEED.TO) advanced 11.5%, Aphria Inc. (APHA.TO) surged about 10% and Hexo Corp (HEXO.TO) ended with a gain of 3.5%. Bausch Health Companies (BHC.TO) shares gained about 1.1%.

In the energy space, Gran Tierra Energy (GTE.TO) gained 5.6%. ARC Resources (ARX.TO), Tourmaline Oil Corp (TOU.TO), Seven Generations Energy (VII.TO) and Vermilion Energy (VET.TO) gained 0.75% to 1.8%.

Lundin Mining (LUN.TO), Agnico Eagle Mines (AEM.TO) Silvercorp Metals (SVM.TO) were among the prominent losers in the materials space. Oceanagold (OGC.TO), Eldorado Gold (ELD.TO) and B2Gold Corp (BTO.TO) ended on a firm note.

Shares of Hudson's Bay Company (HBC.TO) ended nearly 21% up. Trading was halted at the counter after the stock's volatile movements pushed it up by 22%, triggering the circuit break. On resumption, it retreated slightly from higher levels, but still ended the session on a high note.

Hudson's Bay Company is in the midst of proxy battle between a group led by executive chairman Richard Baker and a dissident shareholder group that opposes Baker's plan to take the company private.

Canada Goose Holdings (GOOS.TO) and Restaurant Brands International (QSP.UN) ended stronger by 1.6% and 1.3%, respectively.

On Wall Street, stocks showed a lack of direction throughout much of the trading day on Tuesday but moved to the upside going into the close.

The Dow, the Nasdaq and the S&P 500 all ended higher by 0.3%. The Nasdaq and S&P 500 posted their biggest yearly gains in six years, rising 35.2% and 29.6%, respectively. The Dow gained 22.3% in the year, scoring its best returns since 2017.

President Donald Trump revealed in a post on Twitter this morning that the phase one trade deal will be signed during a White House ceremony on January 15th.

"I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15. The ceremony will take place at the White House. High level representatives of China will be present. At a later date I will be going to Beijing where talks will begin on Phase Two!" Trump tweeted.

Recent reports have indicated Chinese Vice Premier Liu He, Beijing's top trade negotiator, will be on hand to sign the agreement.

Stock markets across the Asia-Pacific region ended mostly lower on Tuesday. Sevearl markets were closed for New Year holidays.

European stocks moved to the downside during an abbreviated trading session. France and the U.K. closed lower by 0.1% and 0.6%, respectively, while Switzerland and Germany were closed for New Year's Eve.

In commodities, West Texas Intermediate crude oil futures for February ended down $0.62, or about 1%, at $61.06 a barrel.

Oil futures gained about 11% in the month of December 2019. For the year, WTI crude oil futures gained nearly 35%, the best returns since 2016, when futures soared as much as 45%.

Gold futures for February ended up $4.50, or about 0.3%, at $1,523.10 an ounce, the highest settlement in about 14 weeks. Annually, year 2019 turned out to be the best for the safe-haven asset in nine years in terms of returns.

Silver futures for March ended down $0.080 at $17.921 an ounce, while Copper futures for March settled at $2.7970 per pound, down $0.0365 from previous close.