TSX Fails To Hold Early Gains, Ends Modestly Lower

(RTTNews) - The Canadian stock market failed to hold earlier gains and settled lower on Thursday, as optimism about a U.S.-China long term trade deal faded a bit due to certain disputes over intellectual property and other key issues.

Shares from healthcare sections posted sharp losses and dragged the market down from higher levels. Industrials edged lower. Despite crude oil's sharp upmove, energy stocks were largely sluggish. Materials and financial stocks were mostly subdued, while consumer staples edged higher.

The benchmark S&P/TSX Composite Index ended down 32.71 points, or 0.22%, at 14,750.35, more than 120 points off the day's high of 14,871.65. The index touched a low of 14,721.30 in the session.

In the healthcare space, Aphria Inc. (APHA.TO) ended with a loss of about 9.5% and Aurora Cannabis Inc. (ACB.TO) declined 6.6%. Aurora Cannabis announced that it has entered into an agreement to invest $10 million by way of brokered private placement in High Tide Inc., a privately held, retail-focused cannabis and lifestyle accessories company.

Canopy Growth Corporation (WEED.TO) eased by about 4.1% and Bausch Health Companies Inc. (BHC.TO) ended 2.1% down.

Among energy stocks, Suncor Energy (Su.TO), Encana Corporation (ECA.TO), Imperial Oil (IMO.TO) and Tourmaline Oil Corp. (TOU.TO) declined by 1% to 3%.

PrairieSky Royalty (PSK.TO) jumped 5.7%, ARC Resources (ARX.TO) gained 3.5% and Husky Energy (HSE.TO) advanced by 1.5%.

Among materials shares, Barrick Gold Corporation (ABX.TO) ended 0.5% up. The company said it has made progress in talks with the Tanzanian government to resolve its tax dispute.

Franco-Nevada Corporation (FNV.TO), Teck Resources (TECK.B.TO), Agnico Eagle Mines (AEM.TO) and Kirkland Lake Gold (KL.TO) gained 1% to 2%.

Goldcorp Inc. (G.TO) shed about 2% and Nutrien (NTR.TO) ended 1.1% down.

Among bank stocks, Bank of Montreal (BMO.TO) declined by more than 1% and Canadian Imperial Bank of Commerce (CM.TO) gained about 0.55%.

Among the volume toppers in today's session, Bombardier Inc. (BBD.B.TO) declined by more than 6% on huge volumes. BayTex Energy (BTE.TO) jumped 8.4%, clocking a volume of over 6.6 million shares. Crescent Point Energy (CPG.TO) ended higher by about 5.1% and AtlasGas (ALA.TO) gained nearly 10%.

Traders appeared a bit concerned following reports about the Chinese investigation agency questioning a Canadian on suspicion of engaging in activities that harm China's national security. Earlier in the week, the Chinese state security had detained a former Canadian diplomat.

Canadian officials, wary of possible retaliation by the Chinese government after the arrest Huawei executive Meng Wanzhou in Vancouver last week, had requested security for Canadian diplomats in China.

On the economic front, Statistics Canada's report showed new housing price was unchanged on a national basis for a third successive month in November. In October, new home buyers in 16 of the 27 census metropolitan areas surveyed saw flat or lower prices. For over a year now, new home prices have remained largely flat.

In the U.S. market, stocks ended mixed after a lackluster session with traders waffling between optimism and skepticism about a potential trade deal with China. The market started off on a firm note on reports that some Chinese state-owned companies purchased U.S. soybeans for the first time in more than six months.

In U.S. economic news, a report from the Labor Department said initial jobless claims fell to 206,000 in the week ended December 8th, a decrease of 27,000 from the previous week's revised level of 233,000. Economists had expected jobless claims to slip to 225,000.

Another report from the Labor Department said import prices were lower by 1.6% in November after climbing by 0.5% in October. Economists had expected import prices to slump by 0.9%. The report said export prices tumbled by 0.9% in November following an upwardly revised 0.5% advance in October.

European markets ended mostly lower after moving sideways for the majority of the session. Traders were in a cautious mood amidst some major ECB developments and the results of yesterday's UK vote.

The European Central Bank left its interest rates unchanged on Thursday and confirmed that it will its four-year long massive EUR 2.6 trillion Asset Purchase Programme in December, even the as the 19-nation euro area economy shows signs of a sustained slowdown.

The ECB President Mario Draghi's warning that the "balance of risks is moving to the downside," and the lowering of GDP and inflation forecasts for the eurozone weighed on sentiment.

In commodities, crude oil futures for January ended up $1.43, or 2.8%, at $52.58 a barrel on the New York Mercantile Exchange.

Gold futures for February ended down $2.60, or 0.2%, at $1,247.40 an ounce.

Silver futures for March settled at $14.855 an ounce, down slightly from Wednesday's close, and Copper futures for March ended at $2.767 per pound.