Canadian Stocks Are Pulling Back On Profit Taking -- Canadian Commentary

(RTTNews) - The Canadian stock market is falling in early trade Tuesday, following 7 straight sessions of gains. The winning streak has been fueled by gains in energy, mining and gold stocks. However, that trio is under pressure this morning as investors take advantage of an opportunity to lock in some profits.

Crude oil prices are pulling back this morning, after rising over $38 a barrel yesterday. That was the highest level for crude prices since the start of 2016. Disappointing trade data from China is also contributing to the weakness in the Canadian market this morning as concerns over slowing global growth re-emerge.

China's exports plunged in February, largely reflecting the shift in the timing of Chinese New Year, official data revealed Tuesday.

Exports tumbled 25.4 percent year-on-year in February, the biggest fall since May 2009, the General Administration of Customs reported today. Economists had forecast a 15 percent drop after the 11.2 percent drop in January.

At the same time, imports logged an annual fall of 13.8 percent, bigger than the 10.2 percent decrease expected by economists.

As the decline in exports outpaced the fall in imports, the trade surplus narrowed sharply to $32.6 billion from $63.29 billion in the prior. The surplus was also below economists' forecast of $50.75 billion.

Markets in Europe has slipped back into the red, after briefly turning positive. Weak Chinese trade data and the pullback in crude oil prices are weighing on the markets. Investors are also awaiting the announcement from the European Central Bank meeting on Thursday.

Markets in the United States are also struggling in early trade. With no U.S. economic data to drive trading, disappointing Chinese trade data and weak cues from overseas markets are weighing on sentiment.

The benchmark S&P/TSX Composite Index is down 96.68 points or 0.72 percent at 13,289.30.

On Monday, the index closed up 171.10 points or 1.29 percent, at 13,383.60. The index scaled an intraday high of 13,447.68 and a low of 13,235.25.

The Diversified Metal and Mining Index is sinking 8.35 percent. First Quantum Minerals (FM.TO) is tumbling 16.32 percent and Lundin Mining (LUN.TO) is decreasing 3.84 percent. Teck Resources (TCK-B.TO) is losing 9.58 percent and Sherritt International (S.TO) is down 7.92 percent. HudBay Minerals (HBM.TO) is weakening by 9.58 percent and Capstone Mining (CS.TO) is falling 10.71 percent.

The Energy Index is declining 2.23 percent. Crude oil prices are slipping this morning, after rising above $38 a barrel yesterday.

Cenovus Energy (CVE.TO) is falling 1.47 percent and Crescent Point Energy (CPG.TO) is down 3.90 percent. Husky Energy (HSE.TO) is lower by 2.20 percent and Encana (ECA.TO) is sinking 9.91 percent. Imperial Oil (IMO.TO) is dipping 0.78 percent and Canadian Natural Resources (CNQ.TO) is decreasing 1.97 percent. Suncor Energy (SU.TO) is dropping 1.24 percent and Canadian Oil Sands (COS.TO) is also down 1.24 percent. Pacific Exploration & Production (PRE.TO) is tumbling 5.22 percent.

The Gold Index is down 2.08 percent. Gold prices remain up this morning, but are off their early highs.

Barrick Gold (ABX.TO) is falling 3.20 percent and IAMGOLD (IMG.TO) is declining 4.46 percent. Yamana Gold (YRI.TO) is down 1.38 percent and Kinross Gold (K.TO) is losing 3.78 percent. Goldcorp (G.TO) is weakening by 2.03 percent and Royal Gold (RGL.TO) is surrendering 3.72 percent. Eldorado Gold (ELD.TO) is lower by 2.47 percent and B2Gold (BTO.TO) is decreasing 1.11 percent.

The Capped Materials Index is also down 2.35 percent. Franco-Nevada (FNV.TO) is dipping 0.18 percent and Agnico Eagle Mines (AEM.TO) is declining 2.24 percent. Silver Wheaton (SLW.TO) is lower by 1.69 percent and Potash Corp. of Saskatchewan (POT.TO) is losing 0.89 percent.

The Capped Industrials Index is losing 1.12 percent. Finning International (FTT.TO) is falling 2.90 percent and Air Canada (AC.TO) is down 5.09 percent. Canadian Pacific Railway (CP.TO) is decreasing 1.97 percent and Canadian National Railway (CNR.TO) is surrendering 1.67 percent. AutoCanada (ACQ.TO) is weakening by 3.42 percent and Bombardier (BBD-B.TO) is lower by 3.97 percent.

The Capped Health Care Index is down 1.11 percent. Valeant Pharmaceuticals International (VRX.TO) is losing 1.58 percent and Concordia Healthcare (CXR.TO) is falling 2.36 percent.

The Capped Information Technology Index is lower by 0.25 percent. Constellation Software (CSU.TO) is down 1.85 percent and Avigilon (AVO.TO) is falling 0.72 percent. Sierra Wireless (SW.TO) is declining 1.98 percent and BlackBerry (BB.TO) is losing 0.55 percent.

The heavyweight Financial Index is slipping 0.19 percent. Bank of Montreal (BMO.TO) is down 0.04 percent and Royal Bank of Canada (RY.TO) is falling 0.35 percent.

The Capped Telecommunication Services Index is rising 0.68 percent. TELUS (T.TO) is gaining 0.48 percent and BCE (BCE.TO) is up 0.80 percent. Manitoba Telecom Services (MBT.TO) is climbing 0.48 percent.

Atlantic Power (ATP.TO) reported a loss of $88.6 million in the fourth quarter versus a loss of $10.6 million in the same period last year. The stock is surging 8.86 percent.

NeuLion (NLN.TO) is rising 3.45 percent, after its Board authorized the repurchase of up to US$10 million of NeuLion's common stock over the next 12 months.

On the economic front, Canada Mortgage & Housing reported Tuesday morning that Canadian housing starts increased 28.8 percent to an annual rate of 212,594 units in February. Economists had expected 180,000 units.

Statistics Canada also reported this morning that Canadian building permits declined 9.8 percent in January. Economists had expected a decrease of 2.3 percent.

The Eurozone economy grew as estimated in the fourth quarter, data from Eurostat showed Tuesday. Gross domestic product climbed 0.3 percent sequentially, in line with the estimate published on February 12. The economy had logged a similar 0.3 percent expansion in the third quarter.

Germany's industrial production recovered at the fastest pace in more than six years in January, as mild weather boosted construction activity. Industrial output grew 3.3 percent on a monthly basis in January, reversing a revised 0.3 percent fall in December, data from Destatis revealed Tuesday.

The growth was the fastest since September 2009, when output climbed 3.6 percent. Economists had forecast only a 0.5 percent rise for January.

The French trade deficit widened less than expected in January, figures from customs office showed Tuesday. The trade shortfall increased to EUR 3.71 billion from EUR 3.68 billion in December. The deficit was forecast to rise to EUR 4.1 billion.

Like-for-like sales in the United Kingdom added just 0.1 percent on year in February, the British Retail Consortium said on Tuesday. That missed forecasts for an increase of 0.5 percent following the 2.6 percent increase in January.

In commodities, crude oil futures for April delivery are down 0.97 or 2.56 percent at $36.93 a barrel.

Natural gas for April is down 0.003 or 0.18 percent at $1.687 per million btu.

Gold futures for April are up $2.60 or 0.21 percent at $1,266.60 an ounce.

Silver for May is down $0.198 or 1.27 percent at $15.435 an ounce.