The Canadian stock market is down triple digits in early trade Tuesday, following the modest gains of the previous session. Energy stocks are among the hardest hit this morning, as crude oil prices have slipped beneath $45 a barrel. Comments from OPEC and the most recent forecast from the International Energy Agency are dragging prices lower.
Gold stocks are also under pressure this morning, after yesterday's strong performance. Gold prices are heading lower Tuesday despite dovish remarks from a top Federal Reserve official.
Markets in Europe are turning in a mixed performance. The markets got off to a positive start, but most have slipped into the red after the weak opening on Wall Street. The European markets have been on a losing streak for the past 3 sessions.
Markets in the United States have been losing ground since the open of trade Tuesday, following yesterday's strong rally. Continued uncertainty about the outlook for interest rates are weighing on investor sentiment this morning. The Fed has entered a quiet period ahead of its meeting next week. Weakness in crude oil prices is also creating some selling pressure.
The benchmark S&P/TSX Composite Index is down 164.69 points or 1.13 percent at 14,432.45.
On Monday, the index closed up 57.14 points or 0.39 percent, at 14,597.14. The index scaled an intraday high of 14,628.29 and a low of 14,457.39.
The Energy Index is down 2.07 percent. Crude oil prices have fallen below $45 a barrel this morning after OPEC said it expects the global supply glut will extend into 2017.
The International Energy Agency also forecast global supply would outpace demand well into next year, reversing an earlier prediction.
Crescent Point Energy (CPG.TO) is weakening by 2.68 percent and Encana (ECA.TO) is declining 4.78 percent. Suncor Energy (SU.TO) is decreasing 1.49 percent and Imperial Oil (IMO.TO) is losing 1.71 percent. Canadian Natural Resources (CNQ.TO) is down 2.06 percent and Cenovus Energy (CVE.TO) is falling 3.40 percent. Husky Energy (HSE.TO) is surrendering 2.33 percent and Enbridge (ENB.TO) is slipping 0.83 percent.
The Gold Index is lower by 1.13 percent. Gold prices are slightly higher Tuesday morning after dovish comments on interest rates from Federal Reserve Governor Lael Brianerd.
"Today's new normal counsels prudence in the removal of policy accommodation," Brainard told the Chicago Council on Global Affairs Monday afternoon.
Eldorado Gold (ELD.TO) is declining 1.42 percent and Kinross Gold (K.TO) is falling 1.80 percent. IAMGOLD (IMG.TO) is weakening by 3.30 percent and Yamana Gold (YRI.TO) is decreasing 0.33 percent. Goldcorp (G.TO) is forfeiting 1.68 percent and B2Gold (BTO.TO) is down 0.54 percent. Barrick Gold (ABX.TO) is losing 0.17 percent.
The Capped Materials Index is also down 1.21 percent. Agnico Eagle Mines (AEM.TO) is losing 0.39 percent and Franco-Nevada (FNV.TO) is falling 1.10 percent. Silver Wheaton (SLW.TO) is declining 1.65 percent.
Agrium (AGU.TO) is weakening by 2.66 percent and Potash Corp. of Saskatchewan (POT.TO) is dropping 2.20 percent.
The Capped Telecommunication Services Index is down 0.91 percent. Rogers Communication (RCI-B.TO) is decreasing 0.31 percent and TELUS (T.TO) is losing 0.43 percent. Manitoba Telecom Services (MBT.TO) is declining 0.66 percent and BCE (BCE.TO) is forfeiting 1.30 percent.
The Capped Healthcare Index is lower by 0.92 percent. Extendicare (EXE.TO) is down 1.38 percent and Concordia Healthcare (CXR.TO) is losing 2.80 percent. Valeant Pharmaceuticals (VRX.TO) is also falling 1.12 percent.
The heavyweight Financial Index is decreasing 0.90 percent. Toronto Dominion Bank (TD.TO) is losing 1 percent and Royal Bank of Canada (RY.TO) is down 0.87 percent. Bank of Nova Scotia (BNS.TO) is falling 1.36 percent and Bank of Montreal (BMO.TO) is lower by 0.88 percent. National Bank of Canada (NA.TO) is weakening by 0.93 percent and Canadian Imperial Bank of Commerce (CM.TO) is dropping 1.01 percent.
The Capped Information Technology Index is falling 0.87 percent. Constellation Software (CSU.TO) is down 1.21 percent and Sierra Wireless (SW.TO) is losing 0.11 percent.
BlackBerry (BB.TO) is dropping 2.01 percent. The company announced new services for its Android Hub+ platform.
The Capped Industrials Index is losing 0.37 percent. Canadian Pacific Railway (CP.TO) is down 0.36 percent and Canadian National Railway (CNR.TO) is decreasing 0.60 percent. Air Canada (AC.TO) is surrendering 0.22 percent and Bombardier (BBD-B.TO) is slipping 0.51 percent.
Royal Nickel Corporation (RNX.TO) has changed its name to RNC Minerals. Shares are currently unchanged.
On the economic front, a trio of data released by the Chinese National Bureau of Statistics vouched for the vibrancy of the world's second largest economy, with industrial production, retail sales and investment growth for August all exceeding economists' expectations.
Industrial production growth improved to 6.3 percent in August from 6 percent in July. This was the fastest expansion since March, when output climbed 6.8 percent. Production was expected to rise 6.2 percent.
Retail sales advanced 10.6 percent annually, faster than the 10.2 percent increase seen in July. This was the biggest growth seen so far this year. Economists had expected the growth to remain at 10.2 percent.
During January to August, fixed asset investment growth held steady at 8.1 percent, while it was forecast to ease to 7.9 percent. The growth of private investment in fixed asset also stayed unchanged at 2.1 percent.
Eurozone employment grew at a steady pace in the second quarter from the previous three months, preliminary figures from Eurostat showed Tuesday. Employment in the 19-nation economy rose 0.4 percent from the first quarter, when it grew at the same pace. In the fourth quarter of 2015, employment growth was 0.3 percent.
German economic sentiment stabilized in September after a modest recovery in the previous month amid mixed signals on exports and industrial production and overall European economy, results of a closely-watched survey showed Tuesday.
The ZEW Indicator of Economic Sentiment held steady at 0.5 points in September, which is well below its long-term average of 24.1 points, the Mannheim-based Centre for European Economic Research/ZEW said. Economists had expected further improvement in the index to 2.5.
Germany's consumer price inflation held steady in August as initially estimated, final figures from Destatis showed Tuesday. The consumer price index rose at a stable pace of 0.4 percent year-over-year in August, confirming the flash data published earlier.
Germany's wholesale prices decreased at a slower pace in August, data from Destatis showed Tuesday. Wholesale prices dropped 1.2 percent in August from a year ago, following a 1.4 percent decrease in July. This was the slowest pace of decrease since January, when prices fell 1 percent.
U.K. inflation remained stable and factory gate prices accelerated notably in August, the Office for National Statistics reported Tuesday. Consumer prices advanced 0.6 percent year-on-year in August, the same pace of growth as seen in July. Prices were expected to rise 0.7 percent.
British house price inflation slowed in July but the strong trend seen since the end of 2013 has continued, the Office for National Statistics said Tuesday. Average house prices increased 8.3 percent in July from a year ago, slower than the 9.7 percent growth registered in June.
In commodities, crude oil futures for October delivery are down 1.25 or 2.70 percent at $45.04 a barrel.
Natural gas for October is up 0.003 or 0.10 percent at $2.918 per million btu.
Gold futures for December are up $2.10 or 0.16 percent at $1,327.70 an ounce.
Silver for December is up $0.015 or 0.08 percent at $19.015 an ounce.
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