Canadian Stocks Are Paring Early Losses -- Canadian Commentary

(RTTNews) - The Canadian stock market got off to a weak start Monday, but has pared its losses in early action. Gold stocks are among the best performing stocks this morning, despite some early weakness in gold prices. Energy stocks have also pared their early losses as crude oil prices have bounced back near unchanged levels.

There has been little global economic data to drive trading at the start of the week. However, a merger of equals has been reached by fertilizer giants Potash Corporation of Saskatchewan and Agrium. Reports of merger talks between the two companies drove their stock prices sharply higher in late August.

Markets in Europe are firmly in negative territory Monday. After a sharp drop at the open, the markets have remained in a sideways trend. Hawkish comments from several Federal Reserve officials have bolstered the dollar and dragged down commodity prices. Investors are also awaiting the BOE meeting on Thursday and the upcoming BOJ meeting to see whether central banks have room for further stimulus measures should economic conditions deteriorate.

Markets in the United States got off to a weak start Monday, but have since climbed into positive territory. Concerns about the upcoming Federal Reserve interest rate decision prompted a sharp slide on Friday. Investors remain cautious ahead of the Federal Reserve decision next week. The benchmark S&P/TSX Composite Index is down 13.03 points or 0.09 percent at 14,526.97.

On Friday, the index closed down 263.26 points or 1.78 percent, at 14,540.00. The index scaled an intraday high of 14,717.23 and a low of 14,502.90.

The Gold Index is higher by 2.29 percent. Gold prices are down Monday morning, amid speculation the Federal Reserve may raise interest rates this month. A number of Fed speakers have recently indicated a willingness to raise rates despite mixed economic data.

Eldorado Gold (ELD.TO) is advancing 4.93 percent and Kinross Gold (K.TO) is rising 2.22 percent. IAMGOLD (IMG.TO) is jumping 5.09 percent and Yamana Gold (YRI.TO) is increasing 3.66 percent. Goldcorp (G.TO) is climbing 3.08 percent and B2Gold (BTO.TO) is up 1.42 percent.

Barrick Gold (ABX.TO) is gaining 1.79 percent. The company announced that it has partnered with Cisco Systems in an effort to improve productivity and efficiency in its mining business.

The Capped Materials Index is also up 1.28 percent. Agnico Eagle Mines (AEM.TO) is climbing 3.19 percent and Franco-Nevada (FNV.TO) is rising 1.03 percent. Silver Wheaton (SLW.TO) is advancing 0.42 percent.

Agrium (AGU.TO) is slipping 0.81 percent, but Potash Corp. of Saskatchewan (POT.TO) is gaining 0.50 percent. The companies have agreed to combine in a merger of equals. The combined value of the agricultural product companies will be $36 billion.

The Energy Index is up 0.11 percent. Crude oil prices are dipping Monday morning amid signs the global supply glut will worsen unless Saudi Arabian and Russia limit production. US rig counts are on the rise, while Iran is expected to keep pumping oil at a breakneck pace to make up for years of sanctions.

Crescent Point Energy (CPG.TO) is climbing 0.28 percent and Encana (ECA.TO) is adding 0.12 percent. Suncor Energy (SU.TO) is increasing 0.17 percent and Imperial Oil (IMO.TO) is gaining 0.10 percent. Canadian Natural Resources (CNQ.TO) is up 0.38 percent.

The Capped Healthcare Index is higher by 0.11 percent. Extendicare (EXE.TO) is up 0.82 percent .

The Capped Industrials Index is gaining 0.11 percent. Canadian Pacific Railway (CP.TO) is up 1.41 percent.

WestJet (WJA.TO) reported higher load capacity, but the stock is now down 0.80 percent.

The heavyweight Financial Index is decreasing 0.61 percent. Toronto Dominion Bank (TD.TO) is losing 0.50 percent and Royal Bank of Canada (RY.TO) is down 0.64 percent. Bank of Nova Scotia (BNS.TO) is falling 0.82 percent and Bank of Montreal (BMO.TO) is lower by 0.43 percent. National Bank of Canada (NA.TO) is weakening by 0.50 percent and Canadian Imperial Bank of Commerce (CM.TO) is dropping 0.67 percent.

The Capped Telecommunication Services Index is down 0.29 percent. Rogers Communication (RCI-B.TO) is decreasing 0.69 percent and TELUS (T.TO) is losing 0.50 percent. Manitoba Telecom Services (MBT.TO) is also declining 0.32 percent.

Open Text (OTC.TO) will buy Dell EMC's Enterprise Content Division, including Documentum. The purchase price of the deal is $1.62 billion. Shares are surging 8.57 percent.

In commodities, crude oil futures for October delivery are down 0.28 or 0.61 percent at $45.60 a barrel.

Natural gas for October is up 0.104 or 3.72 percent at $2.901 per million btu.

Gold futures for December are down $5.30 or 0.40 percent at $1,329.20 an ounce.

Silver for December is down $0.343 or 1.77 percent at $19.025 an ounce.