Canadian Market Modestly Lower; Materials Stocks Decline

(RTTNews) - The Canadian market slipped after opening flat Monday morning, and despite staging a recovery subsequently, remains in negative territory, weighed down by losses in materials sector due to weak metal prices.

Energy stocks are notably higher, riding on firm oil prices. Technology stocks finding some support, while communications and utilities stocks are a bit weak.

Despite the U.S.-European Union agreeing on a trade deal over the weekend, the mood in the market remains cautious with investors awaiting some crucial economic data, and the Bank of Canada's interest rate decision later in the week.

The Canadian central bank, which is scheduled to announce its monetary policy on Wednesday, is widely expected to hold its policy rate steady at 2.75% for a third consecutive decision.

U.S. President Donald Trump announced on Sunday that U.S. and EU have 'reached a deal' as per which America will impose a 15% tariff on products - including automobiles and semiconductors - coming into the country from EU. However, steel and aluminum will remain subject to a 50% tariff, but only on volumes exceeding agreed-upon quotas.

However, several top officials, including a senior European lawmaker, have criticised the draft trade agreement between the US and EU, warning that the deal could undermine the bloc's economic stability and job security. The lawmaker described the proposed framework as "unsatisfactory" and "significantly imbalanced."

The benchmark S&P/TSX Composite Index, which opened at 27,493.08, was down 56.10 points or 0.21% at 27,438.25 a little while ago.

The Energy Capped Index is up 1.85%. Baytex Energy, up 6.5%, is the top gainer in the index. Cenovus Energy and Vermilion Energy are gaining 3.5% and 3.2%, respectively. MEG Energy, Ces Energy Solutions, International Petroleum Corp, Paramount Resources, Canadian Natural Resources and Suncor Energy are up 2 to 3%.

Technology stocks Bitfarms, Shopify, Dye & Durham and Lightspeed Commerce are up 1.4 to 2.5%.

The Materials Capped Index is down 1.9%. New Gold is down nearly 7%. First Majestic Silver Corp, Orla Mining, Endeavour Silver Corp., Seabridge Gold, Fortuna Mines, Kinross Gold and Novagold are down 3 to 4.2%.

Torex Gold Resources is down 5.2%. Torex Gold and Prime Mining Corp have entered into a definitive agreement under which Torex will acquire all issued and outstanding common shares of Prime Mining's Los Reyes gold-silver project in Mexico through a plan of arrangement.