TSX Ends Flat After Lackluster Session

(RTTNews) - After a slightly sluggish start and a subsequent upmove, the Canadian stock market faltered and gave up its gains amid lackluster moves by investors on Friday.

Higher crude oil prices and data from Statistics Canada that showed consumer price index to have risen 2.8% in the 12 months to August, following a 3.0% increase in July, lifted the market, but stocks retreated as the session progressed due to lack of support at higher levels amid uncertainty about a quick resolution on NAFTA.

According to the data released by Statistics Canada, the CPI was up 0.1% in August, on a seasonally-adjusted monthly basis, after increasing 0.5% in July.

Meanwhile, retail sales were up 0.3% at $50.9 billion in July. Excluding the lower sales at motor vehicle and parts dealers, retail sales increased 0.9% in the month.

The benchmark S&P/TSX Composite Index ended up 9.38 points, or 0.06%, at 16,224.13, after scaling a low of 16,211.00 and a high of 16,267.69 intraday.

On Thursday, the index ended up 64.83 points, or 0.40%, at 16,214.75,

Energy, industrials and real estate stocks moved higher. Healthcare stocks declined on profit taking after recent gains. Materials, information technology and consumer discretionary stocks ended weak. Bank stocks turned in a mixed performance.

Royal Bank of Canada (RY.TO) and National Bank of Canada (NA.TO) both ended lower by 0.45%. Bank of Nova Scotia (BNS.TO) gained 0.55% and Bank of Montreal (BMO.TO) added 0.6%, while Toronto-Dominion Bank (TD.TO), Canadian Imperial Bank Of Commerce (CM.TO) ended flat.

The Capped Energy Index gained 0.79%. Suncor Energy Inc. (SU.TO) and Cenovus Energy Inc. (CVE.TO) gained 1% and 1.5%, respectively. Imperial Oil (IM.TO) gained 2.5%, Husky Energy Inc. (HSE.TO) added 2.4% and ARC Resources (ARX.TO) advanced by 2.2%. Altagas (ALA.TO), Crescent Point Energy (CP.TO) gained 5.9% and 1.9%, respectively. Trican Well Service (TCW.TO) lost over 6%.

The Capped Materials Index ended 0.58% down. Nutrien (NTR.TO), Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO), Goldcorp Inc. (G.TO), Agnico Eagle Mines (AEM.TO) and Methanex Corporation (MX.TO) lost 1 to 1.4%. Kinross Gold (K.TO) andNew Gold Inc. (NGD.TO) also ended weak.

Teck Resources (TECK.B.TO) gained 2.2% and First Quantum Minerals (FM.TO) added 1.2%.

The Capped Industrials Index moved up 0.77%. Canadian Pacific Railway (CP.TO) gained 1.35%, Finning International Inc. (FTT.TO) advanced by 1.2%, Toromont Industries (TIH.TO) added 1%, SNC-Lavalin Group Inc. (SNC.TO) ended 2.2% up and Air Canada (AC.TO) gained nearly 2.5%, while Bombardier Inc. (BBD.B.TO) declined by 2.1% and Ritchie Bros. Auctioneers (RBA.TO) ended 1.7% down.

The Capped Healthcare Index declined by 2.31%. Prometic Life Sciences Inc. (PLI.TO) drifted down 7.4%, Canopy Growth Corporation (WEED.TO) ended 4.6% down, Aurora Cannabis Inc. (ACB.TO) eased by 3.3%, Extendicare Inc. (EXE.TO) declined by 2.3% and Aphria Inc. (APH.TO) edged down by 1.3%. Knight Therapeutics Inc. (GUD.TO) gained 1.1%

Asian stocks moved higher on Friday, with investors betting on hopes that the U.S.-China trade row would be less harmful to global growth than first feared.

European stocks edged higher, amid easing worries about the impact of U.S.-China trade row on the global economy.

Sentiment in Asia and Europe was also underpinned by expectations that Beijing would increase economic stimulus to boost the economy in the face of the trade war.

The U.S. market ended mixed, with the Dow moving higher and the Nasdaq and S&P 500 closing in negative territory. Despite choppy trading, the Dow and the S&P 500 recorded new intraday highs.

In economic releases from Europe, the Eurozone private sector grew at the second-weakest rate since late-2016 on subdued manufacturing activity growth in September, survey data from IHS Markit showed. The composite output index fell to 54.2 in September from 54.5 in August. The score was forecast to remain unchanged at 54.5.

French GDP advanced 0.2% sequentially in the second quarter, the same rate as seen in the first quarter, and in line with the second estimate published on August 2, detailed figures from Insee revealed.

Meanwhile, U.K. public sector net borrowing, excluding public sector banks, rose by GBP 2.4 billion from last year to GBP 6.8 billion in August, official data showed. This was the largest August borrowing for two years.

The Fed is scheduled to announce it latest monetary policy decision next Wednesday and is widely expected to raise interest rates by another quarter point. The accompanying statement is likely to attract considerable attention along with Fed Chairman Jerome Powell's press conference as traders attempt to gauge the outlook for further rate hikes.

In commodities, crude oil futures for November delivery ended up $0.46, oe 0.70%, at $70.78 a barrel, the highest settlement price in two weeks, for the most active contract.

Gold futures for December ended down $10.00, or 0.80%, at $1,201.30 an ounce, the lowest close in the week. Silver futures for December settled at $14.359 an ounce, gaining $0.054. Copper futures for December ended higher by $0.1175, at $2.8575 per pound.