Canadian Stocks Have Slipped Into Negative Territory -- Canadian Commentary

(RTTNews) - The Canadian stock market got off to a positive start Monday, but has since slipped into the red. Gold stocks are among the weakest performers at the start of the week. As traders have become more comfortable with the prospects of a Trump presidency in the U.S., investors have begun to exit the safe haven in favor of riskier investments.

The continued weakness in crude oil prices is also weighing on the market. Prices have dropped to their lowest level since the middle of the summer on concerns over a global supply glut.

Markets in Europe are holding onto modest gains Monday, after paring its early gains. The markets began to retreat after crude oil prices turned lower. The continued weakness in gold prices is also weighing on some of the miners.

Markets in the United States are slightly higher this morning, but little changed overall. Traders appear reluctant to make significant moves after the strong gains seen in reaction to President-elect Donald Trump's surprise victory. The lack of major U.S. economic data is also keeping some traders on the sidelines.

The benchmark S&P/TSX Composite Index is down 20.58 points or 0.14 percent at 14,534.83.

On Friday, the index closed down 188.84 points or 1.28 percent, at 14,555.41. The index scaled an intraday high of 14,728.57 and a low of 14,481.59.

The Gold Index is declining 3.72 percent. Gold prices are down Monday, extending last week's significant decline as markets have come to grips with Donald Trump winning the White House.

Goldcorp (G.TO) is down 2.42 percent and Barrick Gold (ABX.TO) is decreasing 5.53 percent. Yamana Gold (YRI.TO) is losing 2.21 percent and Eldorado Gold (ELD.TO) is declining 3.06 percent. Kinross Gold (K.TO) is weakening by 3.19 percent and B2Gold (BTO.TO) is falling 3.79 percent. IAMGOLD (IMG.TO) is also lower by 2.87 percent.

Premier Gold Mines (PG.TO) is dropping 5.98 percent after reporting third quarter revenues of C$13.9 million.

The Capped Materials Index is also down 1.73 percent. Agnico Eagle Mines (AEM.TO) is declining 4.37 percent and Franco-Nevada (FNV.TO) is down 4.59 percent. Silver Wheaton (SLW.TO) is losing 3.13 percent.

The Capped Telecommunication Services Index is weakening by 0.58 percent. TELUS (T.TO) is losing 0.94 percent and Manitoba Telecom Services (MBT.TO) is decreasing 0.43 percent. Rogers Communication (RCI-B.TO) is down 0.47 percent and BCE (BCE.TO) is surrendering 0.63 percent.

The Capped Information Technology Index is falling 0.18 percent. Constellation Software (CSU.TO) is lower by 0.55 percent.

The Energy Index is down 0.05 percent. Crude oil prices continue to fall Monday morning amid a stronger dollar and after the IEA warned about a worsening supply glut.

Meanwhile, OPEC's Monthly Oil Market Report revealed daily oil production for the cartel of 33.64 million barrels for October. That's up by 240,000 bpd from September.

Imperial Oil (IMO.TO) is decreasing 0.51 percent and Cenovus Energy (CVE.TO) is lower by 1.16 percent. Husky Energy (HSE.TO) is down 0.70 percent and Enbridge (ENB.TO) is losing 1.38 percent. Canadian Natural Resources (CNQ.TO) is forfeiting 0.73 percent.

The Capped Industrials Index is down 0.03 percent. Canadian Pacific Railway (CP.TO) is losing 0.07 percent and Air Canada (AC.TO) is declining 0.70 percent.

The Capped Healthcare Index is higher by 1.39 percent. Valeant Pharmaceuticals International (VRX.TO) is rising 1.06 percent and Concordia International (CXR.TO) is up 13.09 percent. Extendicare (EXE.TO) is also gaining 0.66 percent.

The heavyweight Financial Index is increasing 0.67 percent. Toronto-Dominion Bank (TD.TO) is rising 1.19 percent and Bank of Montreal (BMO.TO) is adding 0.96 percent. National Bank of Canada (NA.TO) is climbing 0.96 percent and Royal Bank of Canada (RY.TO) is up 0.59 percent. Canadian Imperial Bank of Commerce (CM.TO) is higher by 0.36 percent.

Amaya (AYA.TO), the online gaming service, has received a $3.5 billion buyout from a group led by former CEO David Baazov. Shares are surging 16.90 percent.

Gildan Activewear Inc. (GIL.TO) has purchased struggling American Apparel for $66 million. American Apparel just filed for Chapter 11 bankruptcy protection. The stock is increasing 2.08 percent.

Enerplus (ERF.TO) reported a third quarter loss per share of C$0.42. The stock is now up 0.12 percent.

On the economic front, China's industrial production and retail sales grew less-than-expected in October, while fixed asset investment growth improved slightly, figures from the National Bureau of Statistics revealed Monday.

Industrial production increased 6.1 percent year-on-year in October, at the same pace of growth as seen in September. This was slower than the 6.2 percent expansion economists had expected.

At the same time, retail sales growth eased to 10 percent from 10.7 percent in September, signaling a slowdown in domestic demand. A similar growth was last seen in May. The annual pace of expansion was expected to stabilize at 10.7 percent.

Japan's gross domestic product climbed 2.2 percent on year in the third quarter of 2016, the Cabinet Office said in Monday's preliminary report. That was well above forecasts for a gain of 0.8 percent following the 0.7 percent increase in the three months prior.

Eurozone industrial production declined less than expected in September, data from Eurostat revealed Monday. Industrial output dropped 0.8 percent in September from August, when it grew by revised 1.8 percent. This was the biggest fall in four months but smaller than the expected drop of 1 percent.

In commodities, crude oil futures for December delivery are down 0.55 or 1.27 percent at $42.86 a barrel.

Natural gas for December is up 0.128 or 4.89 percent at $2.747 per million btu.

Gold futures for December are down $11.10 or 0.91 percent at $1,213.20 an ounce.

Silver for December is down $0.507 or 2.92 percent at $16.875 an ounce.