Canadian Stocks Are Falling On Global Cues -- Canadian Commentary

(RTTNews) - The Canadian stock market is down in early trade Wednesday, extending its losses from the previous two trading sessions. Investors are exercising caution ahead of the release of the minutes from the most recent Federal Reserve meeting this afternoon. The majority of the Canadian sectors are trading in the red, with the notable exception of gold stocks, which are rebounding on rising gold prices.

Markets in Europe are trading in the red Wednesday. Growing anxiety over China's economy and uncertainty over the Federal Reserve's policy outlook weighing on investor sentiment. Meanwhile, German lawmakers backed a third bailout package for Greece despite misgivings among some conservative lawmakers.

Markets in the United States are also under pressure this morning. Investors are awaiting the release of the Fed minutes, which will be closely analyzed for hints regarding whether the Fed will begin raising interest rates at its next meeting in September.

Consumer prices in the U.S. saw a modest increase in the month of July, according to a report released by the Labor Department on Wednesday, with the pace of growth coming in below analyst estimates. The Labor Department said its consumer price index edged up by 0.1 percent in July after climbing by 0.3 percent in June and 0.4 percent in May. Economists had expected prices to rise by 0.2 percent.

The benchmark S&P/TSX Composite Index is down 122.87 points or 0.87 percent at 14,071.00.

On Tuesday, the index closed down 52.88 points or 0.37 percent, at 14,198.65. The index scaled an intraday high of 14,227.44 and a low of 14,125.54.

The Energy Index is decreasing by 1.38 percent. Crude oil prices turned lower Wednesday morning ahead of the minutes of the most recent Federal Reserve meeting.

Crescent Point Energy (CPG.TO) is down 3.74 percent and Cenovus Energy (CVE.TO) is declining by 0.40 percent. Enbridge (ENB.TO) is falling by 0.63 percent and Suncor Energy (SU.TO) is losing 1.21 percent. Canadian Natural Resources (CNQ.TO) is down 1.33 percent and Encana (ECA.TO) is decreasing by 1.45 percent. Canadian Oil Sands (COS.TO) is weakening by 1.65 percent and Pacific Exploration & Production (PRE.TO) is surrendering 2.69 percent.

The Capped Industrials Index is down 1.23 percent. Canadian Pacific Railway (CP.TO) is falling by 0.94 percent and Canadian National Railway (CNR.TO) is losing 1.06 percent. AutoCanada (ACQ.TO) is declining by 2.29 percent and Finning International (FTT.TO) is lower by 2.14 percent. Air Canada (AC.TO) is decreasing by 1.90 percent and Bombardier (BBD-A.TO) is dropping by 3.79 percent.

The heavyweight Financial Index is weakening by 0.93 percent. Royal Bank of Canada (RY.TO) is declining by 0.78 percent and Toronto-Dominion Bank (TD.TO) is down 0.96 percent. Bank of Nova Scotia (BNS.TO) is falling by 1.06 percent and Bank of Montreal (BMO.TO) is losing 1.14 percent. National Bank of Canada (NA.TO) is decreasing by 1.40 percent and Canadian Imperial Bank of Commerce (CM.TO) is surrendering 0.79 percent.

The Capped Health Care Index is falling by 0.65 percent. Concordia Healthcare (CXR.TO) is declining by 1.10 percent and Extendicare (EXE.TO) is losing 1.48 percent. Valeant Pharmaceutical International (VRX.TO) is also down 1.26 percent.

The Capped Information Technology Index is losing 0.53 percent. Sierra Wireless (SW.TO) is falling by 1.88 percent and BlackBerry (BB.TO) is down 0.40 percent.

The Capped Telecommunication Services Index is lower by 0.35 percent. TELUS (T.TO) is down 0.20 percent and Manitoba Telecom Services (MBT.TO) is lower by 1.62 percent.

The Diversified Metal and Mining Index is declining by 0.24 percent. HudBay Minerals (HBM.TO) is losing 1.91 percent and Capstone Mining (CS.TO) is falling by 2.90 percent. Lundin Mining (LUN.TO) is surrendering 1.86 percent.

The Gold Index is climbing by 1.79 percent. Gold prices edged higher Wednesday morning, extending recent gains. A modest increase in U.S. consumer prices came in weaker than expected.

Goldcorp (G.TO) is rising by 1.81 percent and Kinross Gold (K.TO) is increasing by 1.15 percent. Yamana Gold (YRI.TO) is higher by 2.44 percent and B2Gold (BTO.TO) is adding 5.88 percent. Royal Gold (RGL.TO) is gaining 1.74 percent and IAMGOLD (IMG.TO) is surging by 6.55 percent. Barrick Gold (ABX.TO) is also climbing by 2.21 percent.

Eldorado Gold (ELD.TO) is tumbling by 13.37 percent, after the Greek government halted the company's activities in the Halkidiki region of northern Greece.

The Capped Materials Index is also up 33 percent. Agnico Eagle Mines (AEM.TO) is rising by 5.11 percent and Franco-Nevada (FNV.TO) is gaining 1.29 percent. Silver Wheaton (SLW.TO) is advancing by 1.35 percent.

On the economic front, The euro area current account surplus increased for the first time in five months, the European Central Bank reported Wednesday. The current account surplus rose to a 3-month high of EUR 25.4 billion in June from EUR 19.1 billion in May. This was the first increase since February.

Eurozone construction output decreased in June after rising in the previous month, figures from Eurostat showed Wednesday. Construction output fell a seasonally adjusted 1.9 percent month-over-month in June, in contrast to a 0.2 percent increase in May, which was revised down from the 0.3 percent hike reported earlier.

The U.K. household finance index declined to the lowest level in eight months in August, as households expect a hike in interest rates over the next 12 months, survey data from Markit Economics showed Wednesday.

The seasonally adjusted household finance index, which measures overall perceptions of financial well being and aims to track consumer behavior, dropped to 43.4 in August from 45.1 in July.

A score below 50 suggests pessimism regarding finances among the U.K. households. The latest reading was the lowest so far this year, but still above the average since the survey began around six-and-a-half years ago.

In commodities, crude oil futures for September delivery are down $0.42 or 0.99 percent at $42.20 a barrel.

Natural gas for September is up 0.003 or 0.11 percent at $2.707 per million btu.

Gold futures for December are up $8.90 or 0.80 percent at $1,125.80 an ounce.

Silver for September is up $0.415 or 2.81 percent at $15.205 an ounce.