TSX Fails To Retain Early Gains, Ends Modestly Lower

(RTTNews) - Despite opening on a bright note amid hopes the U.S.-China trade talks will help ease trade war concerns, the Canadian stock market slipped and ended in negative territory on Tuesday.

Healthcare stocks were in demand once again. Energy stocks moved higher, tracking firm crude oil prices. Financials and consumer staples stocks traded weak.

While optimism about U.S.-China trade talks drove prices higher early on in the session, the U.S. President Donald Trump's remarks that he "doesn't expect much progress in trade talks" halted market's surge.

The benchmark S&P/TSX ended down 34.06 points or 0.21% at 16,296.97, more than 100 points off the day's high of 16,398.63. On Monday, the index ended up 7.32 points or 0.04% at 16,331.03, after a lackluster session. scaled a high of 16,370.92 and a low of 16,317.37 intraday.

Aurora Cannabis Inc. (ACB.TO) climbed up 7.25%, Canopy Growth Corporation (WEED.TO) gained 2.53% and Aphria (APH.TO), after gave up some gains after a firm start. settled flat.

These stocks were in demand after Ontario signed agreements with 26 cannabis producers including Canopy Growth Corp, Aurora Cannabis and Aphria Inc to supply products when it begins online sales of recreational marijuana in October.

Ivanhoe Mills (IVN.TO) surged up 11.3%. Air Canada (AC.TO) jumped 8.3% on reports that a consortium led by the company, has reached a deal in principle to buy the Aeroplan loyalty program from Aimia Inc. for $450 million in cash. Aimia Inc. shares rose more than 9%.

Raging River Exploration (RRX.TO), BayTex Energy (BTE.TO), Crew Energy (CR.TO) and MEG Energy (MEG.TO) gained 5.7% - 6.5%.

Canadian Energy Services, Turquoise Hill Resources, Hudsons Bay, Gran Tierra Energy, Raging River Exploration and Ensign Energy Services moved by 3.5% - 4.7%. Encana (ECA.TO), Crescent Point Energy (CPG.TO) and Tourmaline Oil (TOU.TO) also ended on a strong note, adding 2% - 3% over previous closing prices.

Eldorado Gold (ELD.TO), First Quantum Minerals (FM.TO), Alacer Gold (ASR.TO) and Labrador Iron Ore (LIF.TO) gained 3% - 4%.

Pattern Energy Group Inc. (PEGI.TO) today announced it has completed the sale of its operations in Chile to affiliates of Arroyo Energy Investors for a cash consideration of $70.5 million before transaction related expenses of approximately $2.0 million. The stock ended marginally lower.

Among bank stocks, Royal Bank of Canada (RY.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO), Toronto-Dominion Bank (TD.TO) and Canadian Imperial Bank of Commerce (CM.TO) ended lower by 0.2% - 0.5%, while National Bank of Canada (NA.TO) edged up marginally.

On the economic front, a report from Statistics Canada showed that wholesale trade was down 0.8% in June to $63.1 billion, for the second time in three months.

Markets were looking ahead to the minutes of Fed's August monetary policy meeting. Fed Chair Jerome Powell is scheduled to speak on Friday on "Monetary Policy in a Changing Economy," at the Fed's annual Economic Policy Symposium that will begin in Jackson Hole, Wyoming, on Thursday.

In economic news from Europe, UK manufacturers registered a slowdown in order growth in August, the Industrial Trends Survey from the Confederation of British Industry showed.

According to the survey, 31% of manufacturers reported total order books to be above normal, and 23% said they were below normal, giving a rounded balance of +7% for three months ended August.

The factory order book balance for August fell to +7% from +11% in previous month. The expected balance was 8%.

European stocks were mostly higher Tuesday morning, with investors shrugging off U.S. President Donald Trump's remarks lamenting the Federal Reserve's interest-rate increases and accusing China and Europe of manipulating their currencies.

Asian stocks ended mixed after U.S. President Donald Trump said he doesn't expect much progress from trade talks with China this week in Washington.

In commodities, Crude oil futures for October, the most actively traded contract, ended up $0.42, or 0.6%, at $65.84 a barrel on the New York Mercantile Exchange.

Crude oil futures contracts for September expired at $67.35 a barrel, gaining $0.92, or 1.4%, over previous session's close of $66.43 a barrel.

Gold futures for December ended up $5.40, or 0.45%, at $1,200 an ounce. On Monday, gold futures settled at $1,194.60 an ounce, up $10.40, or 0.88%, the biggest gain in a single session in nearly a month.

Silver futures for September moved up $0.096, to $14.766 an ounce. Copper futures rose $0.027 to $2.695 per pound.