(RTTNews) – The Canadian stock market got off to a positive start Monday, but has pared its gains in early trade and has now slipped into negative territory. Healthcare stocks are turning in a strong performance this morning, but shares of energy and gold stocks are falling as commodity prices weaken.
Markets in Europe are trading higher Monday, with banks leading gains, after Italy moved to shore up confidence in its fragile banking system. The Italian government agreed to bail out two banks in the Venice region at a cost of 5.2bn euros after the European Central Bank ruled that those banks were “failing or about to fail.”
Markets in the United States are up slightly Monday, but have pared their early gains. Investors were disappointed by the weaker than expected durable goods report for the month of May released this morning.
The benchmark S&P/TSX Composite Index is down 15.31 points or 0.10 percent at 15,304.25.
On Friday, the index closed up 99.66 points or 0.65 percent, at 15,319.56. The index scaled an intraday high of 15,344.57 and a low of 15,221.78.
The Capped Healthcare Index is higher by 2.82 percent. Extendicare (EXE.TO) is advancing 0.29 percent and Valeant Pharmaceuticals International (VRX.TO) is climbing 8.46 percent
The Capped Information Technology Index is gaining 0.36 percent. BlackBerry (BB.TO) is advancing 3.11 percent and Sierra Wireless (SW.TO) is rising 2.10 percent. Constellation Software (CSU.TO) is increasing 0.95 percent and Descartes Systems Group (DSG.TO) is adding 0.06 percent.
The Capped Telecommunication Services Index is up 0.35 percent. TELUS (T.TO) is climbing 0.33 percent and BCE (BCE.TO) is rising 0.12 percent. Rogers Communications (RCI-B.TO) is also higher by 0.57 percent.
The Gold Index is declining 1.28 percent. Gold prices are falling Monday morning amid increased risk appetite, as traders bet on stocks and a rebound in oil prices. A stronger dollar also dented the precious metal.
Kinross Gold (K.TO) is falling 0.89 percent and B2Gold (BTO.TO) is losing 2.04 percent. Barrick Gold (ABX.TO) is declining 1.05 percent and IAMGOLD (IMG.TO) is weakening by 2.70 percent. Yamana Gold (YRI.TO) is decreasing 2.41 percent and Goldcorp Inc. (G.TO) is down 1.50 percent. Eldorado Gold (ELD.TO) is surrendering 1.04 percent.
The Capped Materials Index is down 0.85 percent. Agnico Eagle Mines (AEM.TO) is weakening by 2.36 percent and Franco-Nevada (FNV.TO) is losing 0.87 percent.
The Energy Index is falling 0.81 percent. Crude oil prices are little changed this morning. U.S. producers have been flooding the market with oil, keeping prices well below $50 a barrel.
Canadian Natural Resources (CNQ.TO) is decreasing 0.90 percent and Crescent Point Energy (CPG.TO) is down 1.28 percent. Suncor Energy (SU.TO) is falling 0.70 percent and Imperial Oil (IMO.TO) is declining 0.92 percent. Encana (ECA.TO) is weakening by 1.16 percent and Cenovus Energy (CVE.TO) is losing 0.33 percent.
The heavyweight Financial Index is decreasing 0.07 percent. Bank of Nova Scotia (BNS.TO) is losing 0.20 percent and Royal Bank of Canada (RY.TO) lower by 0.06 percent and Canadian Imperial Bank of Commerce (CM.TO) is declining 0.64 percent.
The Capped Industrials Index is down 0.04 percent. Canadian Pacific Railway (CP.TO) is falling 0.07 percent.
On the economic front, German business confidence strengthened to a record high in June, breaking last month’s record, as companies were more satisfied with their current situation amid improved outlook.
The business confidence index rose unexpectedly to 115.1 in June from 114.6 in May, survey data from the Munich-based Ifo institute showed Monday. The score reached its highest level on record since 1991. The reading was forecast to fall to 114.4.
UK mortgage approvals declined to an eight-month low in May, the British Bankers’ Association reported Monday. The number of mortgages approved in May totaled 40,347, the lowest since September 2016. Economists had forecast approvals to drop to 40,250 from 40,686 in April.
New orders for U.S. manufactured durable goods fell by more than expected in the month of May, according to a report released by the Commerce Department on Monday. The report said durable goods orders tumbled by 1.1 percent in May after slumping by 0.9 percent in April. Economists had expected orders to drop by 0.6 percent.
In commodities, crude oil futures for July delivery are down 0.22 or 0.51 percent at $42.79 a barrel.
Natural gas for July is up 0.079 or 2.70 percent at $3.008 per million btu.
Gold futures for August are down $10.70 or 0.85 percent at $1,245.70 an ounce.
Silver for July is down $0.112 or 0.67 percent at $16.535 an ounce.