Canadian Stocks Are Extending Losing Streak -- Canadian Commentary

(RTTNews) - The Canadian stock market is falling further in early trade Tuesday, extending the losses of the previous three sessions. Investors remain in a cautious mood ahead of Wednesday's announcement from the Federal Reserve. Growing concerns that the U.K. may vote in favor of exiting the European Union next week also has traders on edge.

European markets are down again Tuesday, extending its losing streak to a fifth session and falling to 3 month lows. Banks and commodity-related stocks are under continued pressure ahead of key central bank meetings and next week's referendum on whether Britain should stay in the European Union.

Markets in the United States were modestly positive at the open, but has since slipped into negative territory. Investors remain cautious ahead of Wednesday's announcement from the Federal Reserve. The Fed is widely expected to leave interest rates unchanged, but today's better than expected retail sales report has raised some uncertainty.

The benchmark S&P/TSX Composite Index is down 44.79 points or 0.32 percent at 13,949.09.

On Monday, the index closed down 43.66 points or 0.31 percent, at 13,993.88. The index scaled an intraday high of 14,078.63 and a low of 13,958.82.

The Diversified Metal and Mining Index is declining 2.07 percent. First Quantum Minerals (FM.TO) is falling 4.33 percent and HudBay Minerals (HBM.TO) is decreasing 3.32 percent. Teck Resources (TCK-B.TO) is weakening by 3.18 percent and Lundin Mining (LUN.TO) is losing 1.19 percent.

The heavyweight Financial Index is decreasing 0.64 percent. Canadian Imperial Bank of Commerce (CM.TO) is falling 0.16 percent and Bank of Nova Scotia (BNS.TO) is declining 0.68 percent. Toronto-Dominion Bank (TD.TO) is losing 0.81 percent and Bank of Montreal (BMO.TO) is surrendering 0.63 percent. National Bank of Canada (NA.TO) is weakening by 0.36 percent and Royal Bank of Canada (RY.TO) is down 1.11 percent.

The Capped Materials Index is down 0.56 percent. Agnico Eagle Mines (AEM.TO) is falling 1.27 percent and Franco-Nevada (FNV.TO) is weakening by 0.64 percent. Silver Wheaton (SLW.TO) is decreasing 2.62 percent and Potash Corp. of Saskatchewan (POT.TO) is losing 0.36 percent.

The Gold Index is lower by 0.44 percent. Gold prices seem to have stalled out around $1290 an ounce this morning, following the release of the better than expected U.S. retail sales report. Investors are left to ponder how the report could impact tomorrow's Fed decision.

Barrick Gold (ABX.TO) is falling 0.04 percent and B2Gold (BTO.TO) is lower by 1.08 percent. Goldcorp (G.TO) is dipping 0.22 percent and Royal Gold (RGL.TO) is losing 0.60 percent. Eldorado Gold (ELD.TO) is declining 2.12 percent.

The Capped Healthcare Index is falling 0.23 percent. Concordia Healthcare (CXR.TO) is down 1.28 percent.

Valeant Pharmaceuticals International (VRX.TO) is losing 0.59 percent. Bloomberg reported that the company has hired Morgan Stanley as it weighs the sale of dermatology units Obagi Medical Products and Solta Medical.

The Capped Information Technology Index is falling 0.08 percent. Sierra Wireless (SW.TO) is decreasing 0.94 percent and BlackBerry (BB.TO) is slipping 0.23 percent. Avigilon (AVO.TO) is also declining 2.13 percent.

The Energy Index is up 0.29 percent. Crude oil prices are continuing to fall Tuesday morning ahead of closely watched U.S. inventories data.

Canadian Natural Resources (CNQ.TO) is gaining 1.63 percent and Suncor Energy (SU.TO) is advancing 0.35 percent. Husky Energy (HSE.TO) is higher by 1.24 percent and Encana (ECA.TO) is climbing 0.39 percent. Imperial Oil (IMO.TO) is also up 0.53 percent.

The Capped Telecommunication Services Index is up 0.22 percent. Manitoba Telecom Services (MBT.TO) is rising 0.38 percent and BCE (BCE.TO) is increasing 0.22 percent.

TELUS (T.TO) is gaining 0.80 percent. The company announced that it intends to purchase and cancel up to 1.583 million of its common shares through private agreements with an arm's-length third-party seller.

The Capped Industrials Index is rising 0.05 percent. Air Canada (AC.TO) is surrendering 0.93 percent after it confirmed the ratification of its 10th and final labour agreement with its Canadian unions.

Penn West Petroleum (PWT.TO) is climbing 3.73 percent after it reached a deal to sell its properties in Saskatchewan.

On the economic front, Eurozone industrial production recovered at a faster than expected pace in April, Eurostat showed Tuesday. Industrial production climbed 1.1 percent in April from March when it fell by revised 0.7 percent. Production was forecast to expand 0.8 percent. This was the first increase in three months.

Eurozone employment increased at a stable pace for the second straight quarter in the three months ended March, figures from Eurostat showed Tuesday. The number of employed persons grew 0.3 percent quarterly in the first quarter, the same rate of rise as in the previous two quarters.

U.K. inflation held steady at a very low level in May as a rise in transport costs largely offset the decline in clothing and footwear prices. Meanwhile, factory gate prices continued the decline that started in mid-2014.

Inflation came in at 0.3 percent, the same rate as in April, data from the Office for National Statistics showed Tuesday. The figure was forecast to rise to 0.4 percent.

British house price inflation eased for the first time in eight months in April, figures from the Office for National Statistics showed Tuesday. The house price index rose 8.2 percent year-over-year in April, slower than previous month's 8.5 percent hike.

Retail sales in the U.S. increased by more than expected in the month of May, according to a report released by the Commerce Department on Tuesday. The Commerce Department said retail sales climbed by 0.5 percent in May after surging up by 1.3 percent in April. Economists had expected sales to rise by 0.3 percent.

Reflecting another substantial increase in fuel prices, the Labor Department released a report on Tuesday showing that U.S. import prices surged up by much more than expected in the month of May. The report said import prices jumped by 1.4 percent in May after climbing by an upwardly revised 0.7 percent in April.

Economists had expected import prices to rise by 0.8 percent compared to the 0.3 percent increase originally reported for the previous month.

The Labor Department said export prices also shot up by 1.1 percent in May following a 0.5 percent advance in April. Export prices had been expected to edge up by 0.2 percent.

Business inventories in the U.S. saw a slight uptick in the month of April, the Commerce Department revealed in a report released on Tuesday. The report said business inventories inched up by 0.1 percent in April after rising by a downwardly revised 0.3 percent in March.

Economists had expected inventories to edge up by 0.2 percent compared to the 0.4 percent increase originally reported for the previous month.

In commodities, crude oil futures for July delivery are down 0.49 or 1.00 percent at $48.39 a barrel.

Natural gas for July is up 0.015 or 0.58 percent at $2.60 per million btu.

Gold futures for August are up $3.10 or 0.24 percent at $1,290.00 an ounce.

Silver for July is down $0.053 or 0.30 percent at $17.39 an ounce.