Negative Start to Week

·3 min read

Canada's main stock index slipped on Monday from record highs in the previous session, hit by weakness in mining stocks and dour economic data from China.

The TSX Composite retreated 65.69 points to open the week at 20,862.41.

The Canadian dollar handed back 0.21 cents to 80.80 cents U.S.

PetroTal is hopeful to meet its plans to almost double crude production in Peru this year, despite protests by indigenous groups hitting a key pipeline in the country, the firm's general manager said on Friday.

PetroTal shares began the session up half a cent, or 1.2%, to 43 cents.

Canaccord Genuity cuts the rating on Antibe Therapeutics to hold from speculative buy. Antibe shares dove five cents, or 5.2%, to 92 cents.

Credit Suisse raised the target on Canadian Natural Resources to $59.00 from $53.00. Natural Resources shares gained $1.06, or 2.2%, to $53.49.

Canaccord Genuity cut the rating on Turquoise Hill Resources to sell from hold. Turquoise Hill shares edged up four cents to $16.27.

On the economic calendar, Statistics Canada reported foreign investors acquired $26.3 billion of Canadian securities in August, mainly in the form of debt securities. At the same time, Canadian investors resumed their purchases of foreign securities, adding $15.2 billion worth to their portfolios in August.

What’s more, Canada Mortgage and Housing Corporation told investors housing starts decreased to 251,200 units in September from 262,800 units in August.

Prime Minister Justin Trudeau's newest minority government is set to impose higher taxes on Canadians, which will help fund some campaign promises but are not broad enough to also start paying down the country's record levels of debt, leaving Canada vulnerable to the next economic crisis.


The TSX Venture Exchange eked higher 1.39 points, however, to 939.06.

All but one of the 12 TSX subgroups were lower in the first hour, with health-care skidding 1.3%, consumer discretionary off 1%, and consumer staples lower 0.8%.

Only energy held out against the negative tide, picking up 1.1%.



Stocks slid Monday morning, after the major averages posted their best week in months amid a stronger-than-expected start to earnings season.

The Dow Jones Industrials faded 77.91 points to 35,217.15.

The S&P 500 docked 1.34 points to 4,470.03.

The NASDAQ Composite gained 11.39 points to 14,908.72.

A number of big names are set to report in the week ahead, including Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Tesla, Verizon and IBM are among the other names on deck for the week.

Disney shares lost more than 2% after Barclays downgraded the stock and predicted streaming subscriber growth will slow.

A few things dented sentiment on Monday. Overnight, China reported gross domestic product that disappointed, coming in at 4.9% annual growth in the third quarter. That was short of the 5.3% growth expected by economists polled by Reuters. Industrial production in China last month also fell short of expectations.

U.S. industrial production declined in September too, falling almost 1.28% to its lowest level since February, when it fell 3.02%.

Prices for 10-year Treasurys lost some ground, raising yields to 1.60% from Friday’s 1.58 %. Treasury prices and yields move in opposite directions.

Oil prices picked up 85 cents to $83.13 U.S. a barrel.

Gold prices gained a dime to $1,768.40 U.S. an ounce.

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