Canadian Stocks Are Falling On Global Cues -- Canadian Commentary

(RTTNews) - The Canadian stock market is losing ground in early trade Monday. Global markets are under pressure after the Greek people voted to reject the austerity measures proposed by the country's international creditors. Weakness in energy and mining stocks is weighing on the Canadian market this morning.

The European markets are trading in the red Monday after the Greek people's overwhelming 'No' vote in Sunday's referendum. The "no" vote on the referendum has added to recent concerns about Greece defaulting and exiting from the eurozone. EU leaders are now awaiting proposals from Greece Prime Minister Alexis Tsipras.

Markets in the United States are also under pressure this morning, after the results of the Greek vote. The U.S. markets got off to a weak start, but have since recovered some early losses and shown signs of stabilizing.

Activity in the U.S. service sector expanded at a modestly faster rate in the month of June, according to a report released by the Institute for Supply Management on Monday, although the index of activity in the sector rose by slightly less than expected.

The ISM said its non-manufacturing index inched up to 56.0 in June from 55.7 in May, with a reading above 50 indicating growth in the service sector. Economists had expected the index to rise to 56.4.

The benchmark S&P/TSX Composite Index is down 27.15 points or 0.18 percent at 14,655.24.

On Friday, the index closed up 44.40 points or 0.30 percent, at 14,682.39. The index scaled an intraday high of 14,682.39 and a low of 14,622.30.

The Diversified Metal and Mining Index is losing 2.49 percent. First Quantum Minerals (FM.TO) is decreasing by 2.63 percent and HudBay Minerals (HBM.TO) is down 2.79 percent. Teck Resources (TCK-A.TO) is declining by 7.89 percent and Capstone Mining (CS.TO) is lower by 2.82 percent. Sherritt International (S.TO) is also falling by 1.86 percent.

The Energy Index is decreasing by 1.47 percent. Suncor Energy (SU.TO) is falling by 0.90 percent and Legacy Oil + Gas (LEG.TO) is losing 0.41 percent. Crescent Point Energy (CPG.TO) is down 0.70 percent and Encana (ECA.TO) is weakening by 2.31 percent. Cenovous Energy (CVE.TO) is declining by 1.85 percent and Canadian Oil Sands (COS.TO) is surrendering 2.34 percent. Pacific Rubiales Energy (PRE.TO) is decreasing by 2.45 percent and Enbridge (ENB.TO) is lower by 1.01 percent.

Husky Energy (HSE.TO) is down 0.21 percent. The company continues to ramp up production at the Sunrise Energy Project.

The heavyweight Financial Index is dipping by 0.55 percent. Royal Bank of Canada (RY.TO) is lower by 0.08 percent and Bank of Nova Scotia (BNS.TO) is declining by 0.20 percent. Toronto-Dominion Bank (TD.TO) is falling by 0.45 percent and Bank of Montreal (BMO.TO) is decreasing by 0.19 percent. Canadian Imperial Bank of Commerce (CM) is also down 0.30 percent.

The Capped Industrials Index is falling by 0.41 percent. Finning International (FTT.TO) is lower by 2.23 percent and CAE (CAE.TO) is down 0.73 percent.

Bombardier (BBD-A.TO) is declining by 1.26 percent. Bombardier Commercial Aircraft Monday announced that Qazaq Air will start operations in Kazakhstan with Bombardier Q400 Aircraft.

WestJet Airlines (WJA.TO) is losing 0.53 percent. The company announced a 3-year partnership as the official airline of the RBC Canadian Open and the Canadian Pacific Women's Open.

Air Canada (AC.TO) is rising by 0.30 percent. The company announced that its operations are returning to normal this morning following labour disruption at Consolidated Aviation Fueling of Toronto.

The Capped Telecommunication Services Index is slipping by 0.22 percent. BCE (BCE.TO) is declining by 0.26 percent and Manitoba Telecom Services is lower by 0.57 percent. Rogers Communication (RCI-A.TO) is decreasing by 0.86 percent.

The Gold Index is climbing by 1.08 percent. Gold prices were little changed Monday morning after Greece rejected its bailout plan, meaning it will likely exit the Eurozone.

Goldcorp (G.TO) is up 1.17 percent and Barrick Gold (ABX.TO) is rising by 1.57 percent. Kinross Gold (K.TO) is gaining 1.39 percent and Royal Gold (RGL.TO) is adding 1.50 percent.

IAMGOLD (IMG.TO) is increasing by 2.08 percent. The company said it is not expecting a material impact on its Essakane Mine due to a code revision by transitional assembly of Burkina Faso.

The Capped Materials Index is also up 0.30 percent. Agnico Eagle Mines (AEM.TO) is higher by 1.73 percent and Franco-Nevada (FNV.TO) is adding 0.95 percent. Silver Wheaton (SLW.TO) is gaining 1.15 percent and Agrium (AGU.TO) is advancing by 1.76 percent. Potash Corp. of Saskatchewan (POT.TO) is rising by 0.10 percent.

The Capped Information Technology Index is climbing by 0.55 percent. BlackBerry (BB.TO) is advancing by 0.40 percent and Constellation Software (CSU.TO) is higher by 2.02 percent.

The Capped Health Care Index is up by 0.13 percent. Concordia Healthcare (CXR.TO) is rising by 0.76 percent and Catamaran (CCT.TO) is adding 0.94 percent.

On the economic front, Eurozone investor confidence improved from a four-month low despite Greece crisis, survey data from the think tank Sentix showed Monday. The investor confidence index rose unexpectedly to 18.5 in July from 17.1 in June. It was forecast to fall to 16.

Germany's factory orders decreased for the first time in three months in May reflecting the weakness in domestic market.

Factory orders fell 0.2 percent month-on-month in May, in contrast to a 2.2 percent increase in April, which was revised up from a 1.4 percent growth, Destatis reported Monday. This was the first decline in three months. But it was slower than the expected decrease of 0.4 percent.

Germany's construction sector activity grew at the weakest pace in five months in June as new orders declined, survey data from Markit Economics showed Monday. The seasonally adjusted Purchasing Managers' Index, or PMI, for the construction sector, declined to 50.7 in June from 50.8 in the previous month.

In commodities, crude oil futures for August delivery are down $2.68 or 4.71 percent at $54.25 a barrel.

Natural gas for August is down 0.056 or 1.98 percent at $2.766 per million btu.

Gold futures for August are up $1.80 or 0.15 percent at $1,165.30 an ounce.

Silver for September is up $0.028 or 0.18 percent at $15. 59 an ounce.