Canadian Stocks Are Down As Commodity Prices Struggle -- Canadian Commentary

(RTTNews) - The Canadian stock market is under pressure in early trade Monday, largely due to falling commodity prices. Easing concerns over German lender Deutsche Bank has caused an increase in risk appetite among investors. The bank is reportedly nearing a $5.4 billion settlement with the U.S. Justice Department over its mortgage lending activities before the financial crisis. The news has dented the safe haven appeal of gold stocks and other precious metals.

Meanwhile, crude prices are also dipping after a jump in prices last week. OPEC announced last week that it would finalize a deal to cut output at its policy meeting in November.

Markets in Europe are turning in a mixed performance Monday. A number of European markets have stayed close to the unchanged line in cautious trade at the start of the week. The DAX of Germany is closed for a holiday, while the FTSE of the UK is outperforming the rest of the region. The British manufacturing sector expanded at the fastest pace since mid-2014 in September on faster growth in output and new orders.

Markets in the United States are slipping in early trade Monday. The better than expected ISM manufacturing report has done little to boost investor sentiment this morning. Investors are in a cautious mood ahead of the release of the September jobs report at the end of the week.

The benchmark S&P/TSX Composite Index is down 17.17 points or 0.12 percent at 14,708.69.

On Friday, the index closed down 28.69 points or 0.19 percent, at 14,725.86. The index scaled an intraday high of 14,821.82 and a low of 14,725.86.

The Gold Index is lower by 1.45 percent. Gold prices are slightly lower Thursday morning. The risk appetite among investors has increased due to easing concerns over the financial troubles of Deutsche Bank.

Kinross Gold (K.TO) is losing 1.54 percent and Barrick Gold (ABX.TO) is declining 1.03 percent. Eldorado Gold (ELD.TO) is down 2.13 percent and IAMGOLD (IMG.TO) is decreasing 1.13 percent. Yamana Gold (YRI.TO) is surrendering 0.71 percent.

Goldcorp (G.TO) is falling 2.26 percent. The company announced a controlled shutdown of operations at its Peñasquito mine, following a blockade by a trucking contractor that began September 26, 2016.

The Capped Materials Index is also down 1.32 percent. Agnico Eagle Mines (AEM.TO) is falling 1.49 percent and Franco-Nevada (FNV.TO) is declining 1.34 percent. Silver Wheaton (SLW.TO) is losing 1.69 percent and Agrium (AGU.TO) is weakening by 1.19 percent. Potash Corp. of Saskatchewan (POT.TO) is also slipping 0.56 percent.

The Capped Healthcare Index is lower by 1.01 percent. Valeant Pharmaceuticals International (VRX.TO) is declining 2.14 percent and Extendicare (EXE.TO) is falling 1.16 percent.

The Energy Index is down 0.36 percent. Crude oil prices have slipped back to around $48 a barrel Monday morning, reversing early gains.

Cenovus Energy (CVE.TO) is losing 1.75 percent and Suncor Energy (SU.TO) is decreasing 0.44 percent. Husky Energy (HSE.TO) is lower by 0.50 percent and Imperial Oil (IMO.TO) is down 0.15 percent.

The Capped Information Technology Index is slipping 0.21 percent. BlackBerry (BB.TO) is falling 0.19 percent and Sierra Wireless (SW.TO) is declining 2.33 percent. Constellation Software (CSU.TO) is dipping 0.12 percent and Descartes Systems Group (DSG.TO) is down 0.46 percent.

The Capped Telecommunication Services Index is down 0.19 percent. BCE (BCE.TO) is falling 0.25 percent and Manitoba Telecom Services (MBT.TO) is losing 0.37 percent. Rogers Communication (RCI-B.TO) is also decreasing 0.52 percent.

TELUS (T.TO) is higher by 0.60 percent. The company has agreed terms with the Telecommunications Workers Union, United Steelworkers Local 1944 or TWU of a tentative collective agreement, covering approximately 10,800 TELUS employees nationally.

The heavyweight Financial Index is decreasing 0.01 percent. Royal Bank of Canada (RY.TO) is down 0.14 percent and Bank of Montreal (BMO.TO) is lower by 0.10 percent. Toronto Dominion Bank (TD.TO) is falling 0.07 percent.

The Capped Industrials Index is gaining 0.28 percent. Canadian National Railway (CNR.TO) is higher by 0.20 percent and Canadian Pacific Railway (CP.TO) is increasing 0.34 percent. Air Canada (AC.TO) is advancing 2.08 percent and Finning International (FTT.TO) is up 0.04 percent.

Direct Payments (DCI.TO) is soaring 47.78 percent after it agreed to be acquired by Cardtronics for C$19.00 per share.

WSP Global (WSP.TO) is climbing 0.65 percent, after Bruno Roy was appointed as its new CFO, effective October 31.

On the economic front, Eurozone manufacturing growth accelerated as estimated in September, final data from Markit showed Monday. The Purchasing Managers' Index rose to 52.6, in line with flash estimate, from 51.7 in August.

The British manufacturing sector expanded at the fastest pace since mid-2014 on stronger growth in output and new orders, weathering uncertainty over the "Brexit" vote, survey data from Markit showed Monday.

The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose unexpectedly to 55.4 in September from 53.4 in August. This was the highest score since June 2014. The reading was expected to fall to 52.1.

The manufacturing sector in the U.S. returned to growth in September, according to data released on Monday. The Institute For Supply Management said that its index of national manufacturing performance rose to 51.5 for September. This was up from a level of 49.4 in the previous month. Economists had expected a reading of 50.2.

In commodities, crude oil futures for November delivery are down 0.13 or 0.27 percent at $48.11 a barrel.

Natural gas for November is down 0.019 or 0.65 percent at $2.887 per million btu.

Gold futures for December are down $2.30 or 0.17 percent at $1,314.80 an ounce.

Silver for December is down $0.214 or 1.11 percent at $19.00 an ounce.