Canadian Stocks Continue To Slide On Commodity Weakness -- Canadian Commentary

(RTTNews) - The Canadian stock market is down again in early trade Friday, extending its losses from the previous five trading sessions. Weakness in commodity prices continues to drag the market lower. Precious metal prices are under pressure Friday due to the weaker than expected Chinese manufacturing report. Gold prices have slumped to a 5-year low, while copper, aluminum, silver and platinum prices have also dropped to multi-year lows.

Markets in Europe have turned negative, reversing early gains. Eurozone economic growth slowed slightly in July and Eurozone consumer confidence continued to weaken. Investors continue to sift through a large number of corporate earnings report.

Meanwhile, officials from the European Commission, the European Central Bank and the International Monetary Fund will meet in Athens today to start detailed discussions with the Greek government on a new bailout deal.

Markets in the United States are also under pressure this morning. The lackluster performance comes following the release of mixed earnings news as well as the disappointing Chinese manufacturing data.

New home sales in the U.S. unexpectedly showed a sharp pullback in the month of June, according to a report released by the Commerce Department on Friday, with sales falling to their lowest level in seven months.

The report said new home sales tumbled 6.8 percent to an annual rate of 482,000 in June from the downwardly revised May rate of 517,000. The steep drop came as a surprise to economists, who had expected new home sales to edge up to 550,000 from the 546,000 originally reported for the previous month.

The benchmark S&P/TSX Composite Index is down 45.95 points or 0.32 percent at 14,219.42.

On Thursday, the index closed down 41.75 points or 0.29 percent, at 14,265.37. The index scaled an intraday high of 14,339.29 and a low of 14,168.90.

The Diversified Metal and Mining Index is declining by 2.22 percent. First Quantum Minerals (FM.TO) is decreasing by 4.23 percent and HudBay Minerals (HBM.TO) is falling by 0.84 percent.

The Gold Index is falling by 1.28 percent. Gold prices, mired in their worst slump since 1996, are down yet again Friday morning.

Prices have fallen to their lowest in more than five years as the dollar continues to strengthen on expectations the Federal Reserve will soon raise interest rates.

Eldorado Gold (ELD.TO) is decreasing by 2.92 percent and Goldcorp (G.TO) is losing 2.16 percent. B2Gold (BTO.TO) is down 6.94 percent and Barrick Gold (ABX.TO) is declining by 2.82 percent.

The Capped Materials Index is down 1.53 percent. Agrium (AGU.TO) is losing 0.41 percent and Potash Corp. of Saskatchewan (POT.TO) is lower by 0.73 percent. Agnico Eagle Mines (AEM.TO) is falling by 1.39 percent and Franco-Nevada (FNV.TO) is declining by 1.99 percent. Silver Wheaton (SLW.TO) is also decreasing by 2.29percent.

The Energy Index is decreasing by 1.42 percent. Crude oil prices were steady Friday morning after big losses earlier in the week.

Crescent Point Energy (CPG.TO) is down 2.40 percent and Cenovous Energy (CVE.TO) is declining by 0.74 percent. Canadian Natural Resources (CNQ.TO) is losing 0.44 percent and Canadian Oil Sands (COS.TO) is weakening by 1.81 percent. Pacific Rubiales Energy (PRE.TO) is surrendering 1.39 percent and Suncor Energy (SU.TO) is lower by 1.25 percent.

Encana (ECA.TO) is sinking by 8.19 percent, after it reported a wider than expected loss for the second quarter.

The heavyweight Financial Index is weakening by 0.02 percent. Toronto-Dominion Bank (TD.TO) is dipping by 0.21 percent and Bank of Montreal (BMO.TO) is decreasing by 0.22 percent. Canadian Imperial Bank of Commerce (CM.TO) is down 0.26 percent and National Bank of Canada (NA.TO) is surrendering 0.15 percent. Royal Bank of Canada (RY.TO) is also declining by 0.49 percent

The Capped Health Care Index is falling by 0.55 percent. Valeant Pharmaceuticals International (VRX.TO) is losing 2.35 percent and Extendicare (EXE.TO) is down 0.23 percent.

The Capped Telecommunication Services Index is gaining 0.70 percent. BCE (BCE.TO) is advancing by 1.19 percent and Manitoba Telecom Services (MBT.TO) is rising by 0.07 percent. TELUS (T.TO) is increasing by 0.43 percent and Rogers Communication (RCI-A.TO) is climbing by 1.15 percent.

The Capped Information Technology Index is gaining 0.47 percent. Constellation Software (CSU.TO) is higher by 0.44 percent and Descartes Systems Group (DSG.TO) is climbing by 0.23 percent. Sierra Wireless (SW.TO) is rising by 0.66 percent.

BlackBerry (BB.TO) is down 1.21 percent. The U.S. Department of Defense has approved the use of derived Public Key Infrastructure credentials on BlackBerry OS and BlackBerry 10 smartphones.

The Capped Industrials Index is up 0.38 percent. Canadian Pacific Railway (CP.TO) is rising by 1.13 percent and Canadian National Railway (CNR.TO) is increasing by 0.59 percent. Bombardier (BBD-A.TO) is gaining 3.31 percent and Air Canada (AC.TO) is up 0.17 percent.

Celestica (CLS.TO) is surging by 10.30 percent, after its second quarter profit surpassed expectations.

On the economic front, China's manufacturing sector contracted again in July and at an accelerated pace, the latest survey from Caixin revealed on Friday, with a flash PMI score of 48.2. That marked a 15-month low score, and it was well shy of forecasts for a score of 49.7.

Eurozone consumer confidence deteriorated for a fourth straight month in July and at a faster-than-expected pace, preliminary estimates from the European Commission showed Thursday. The flash consumer confidence index dropped to -7.1 from -5.6 in June. Economists had forecast a score of -5.8.

Despite uncertain developments in Greece, Eurozone economic growth slowed only slightly in July as private sector activity rose at one of the strongest pace seen over the last four years, flash survey data from Markit Economics showed Friday. The Purchasing Managers' Index fell to 53.7 in July from June's four-year high of 54.2. But, it remained slightly above the average seen over the first half of the year. The expected score was 54.

Germany's private sector expanded at a slower pace in July, flash survey data from Markit Economics showed Friday. The flash composite output index fell to 53.4 in July from 53.7 in June.

The French private sector growth slowed to a three-month low in July, flash survey data from Markit Economics showed Friday. The composite output index fell to 51.5 in July from June's 46-month high of 53.3.

British households perceive that the value of their home increased in July, a survey from Knight Frank and Markit Economics showed Friday. The house price sentiment index, or HPSI, dropped to 58.6 in July from 59.5 in the previous month.

U.K. mortgage approvals increased for the sixth straight month to a 15-month high in June and came in above economist expectations, data from the British Bankers' Association showed Friday.

The number of mortgage approvals rose to a seasonally adjusted 44,488 in June from 42,876 in April. It was forecast to rise to 43,300. The latest figure was the highest since March 2014, when approvals totaled 45,574.

In commodities, crude oil futures for August delivery are up $0.11 or 0.23percent at $48.56 a barrel.

Natural gas for August is down 0.028 or 0.99 percent at $2.788 per million btu.

Gold futures for August are down $11.70 or 1.07 percent at $1,082.40 an ounce.

Silver for September is down $0.306 or 2.08 percent at $14.395 an ounce.