TSX Fails To Hold Early Gains, Ends Lower Again

(RTTNews) - After opening higher on firm crude oil prices and on optimism that the foreign ministers of Canada and the U.S. would reach a deal that would help save the North American Free Trade Agreement, Canadian stocks retreated and slipped into negative territory on Monday.

Although the market staged a recovery of sorts around mid afternoon, lack of support at higher levels pushed the market down to a new low for the day towards the closing minutes.

Due to a lack of positive triggers and on mounting worries about U.S.-China trade dispute, investors were mostly reluctant to pick up stocks.

As crude oil prices retreated after early gains, energy stock pared their gains too. Materials stocks were the other prominent losers. Healthcare, information technology and consumer discretionary stocks moved up, while telecom, industrials, financials and real estate stocks ended mixed.

The benchmark S&P/TSX Composite Index ended down 33.18 points, or 0.21%, at 16,057.09, after having risen to a high of 16,147.13 in early trades. The benchmark S&P/TSX Composite Index ended down 10.67 points, or 0.07%, at 16,090.27.

Cannabis stocks were in focus after Aurora Cannabis Inc. (ACB.TO) and ICC Labs Inc. announced that the companies have entered into a definitive arrangement agreement pursuant to which Aurora intends to acquire all of the issued and outstanding common shares of ICC for $1.95 per share, reflecting an aggregate purchase price of approximately $290 million. Aurora Cannabis shares gained 1.75%. ICC Labs Inc. shares jumped nearly 4%.

Among other stocks from the Capped Healthcare Index, which gained 1.5% today, Aphria (APH.TO) ended 6.6% up. Canopy Growth Corporation (WEED.TO) advanced by 1.3% and Hexo (HEXO.TO) soared more than 10%

Energy stocks ARC Resources (ARX.TO), PrairieSky Royalty (PSK.TO), Vermilion Energy Inc. (VET.TO), Husky Energy Inc. (HSE.TO), Imperial Oil (IMO.TO), Encana Corporation (ECA.TO) and Suncor Energy Inc. (SU.TO) lost 1 to 2.%.

In the materials space, Wheaton Precious Metals Corp. (WPM.TO) and Kinross Gold Corporation (K.TO), both ended lower by 3.4%, Barrick Gold Corporation (ABX.TO) declined by 3.3%, Franco-Nevada Corporation (FNV.TO) ended 1.6% down and Goldcorp Inc. (G.TO) eased by about 2%.

Among bank stocks, Bank of Montreal (BMO.TO) edged down by 0.4%, while others ended little changed from previous closing levels.

AltaGas Ltd. (ALA.TO) shares climbed up 2.75%, after the company announced that it has entered into definitive agreements for the sale of non-core midstream and power assets in Canada and power assets in the United States, for total proceeds of approximately $560 million. The company said it intends to use the sale proceeds to repay a significant portion of the bridge facility related to the acquisition of WGL Holdings Inc.

Bombardier Inc. (BBD.B.TO) gained 3.1%, CannTrust Holdings Inc. (TRST.TO) jumped 14.1%, Green Organic Dutchman Holdings (TGOD.TO) zoomed 10.6% and Hydro One (H.TO) gained 7.1%.

Among other stock markets, U.S. closed mixed after a lackluster session. Movements were quite sluggish on Wall Street as traders largely stayed on the sidelines, looking ahead to a slew of economic data, during the course of this week. Worries about trade too weighed on the market.

Data on producer and consumer price inflation, retail sales and industrial production as well as the Fed's Beige Book are due this week.

The European markets ended with modest gains. Asian markets ended mostly lower on Monday.

In economic news from Europe, the eurozone investor confidence deteriorated unexpectedly in September, with the investor sentiment index fell to 12.0 in September from 14.7 in August. The score was forecast to rise to 15.0.

France's economy is forecast to grow as previously estimated in the third quarter, a monthly Bank of France survey revealed Monday.

The UK economy expanded at the fastest pace in almost a year in July, with gross domestic product growing 0.6% in three months to July, the fastest since August 2017, data from the Office for National Statistics revealed Monday.

UK industrial production logged a marginal less-than-expected growth in July, the Office for National Statistics reported. Industrial output climbed 0.1% in July from June due primarily to a rise in mining and quarrying of 3.3%. Economists had forecast industrial output to gain 0.2% in July.

In Asia, China's inflation accelerated to a 6-month high in August, while producer price inflation eased reflecting soft domestic demand, official data showed Monday. Inflation accelerated to 2.3% in August from 2.1% in July, the National Bureau of Statistics reported. Inflation was expected to remain at 2.1%.

Another report from NBS showed that producer price inflation eased to 4.1% in August from 4.6% in July. However, the rate was slightly above the expected 4%.

In commodities, crude oil futures for October delivery ended down $0.20, or 0.3%, at $67.55 a barrel, extending losses to a fourth straight session.

Gold futures for December ended down $0.60, or 0.05%, at $1,199.80 an ounce.

Silver futures for December settled at $14.181 an ounce, gaining $0.011, while Copper futures ended up $0.055, at $2.6280 per pound.