Home Markets Canadian Shares Exhibiting Weakness As Geopolitical Tensions, Growth Worries Weigh

Canadian Shares Exhibiting Weakness As Geopolitical Tensions, Growth Worries Weigh

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investorsdiurnal business news magazine

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(RTTNews) – The Canadian stock market is languishing in negative territory around noon on Friday, after opening on a weak note amid rising worries about U.S.-China tensions, and uncertainty about the pace of economic recovery due to the continued surge in coronavirus cases.

Materials and energy stocks are finding some support, while financial, utilities and healthcare shares are mostly lower. Consumer discretionary, information technology and industrial shares are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is down 34.76 points or 0.22% at 15,983.80, after falling to a low of 15,928.42.

Among the prominent losers, Royal Bank of Canada (RY.TO) is down more than 2%, Suncor Energy (SU.TO) is declining 1.65% and Toronto-Dominion Bank (TD.TO) is lower by 1.25%, while Bank of Nova Scotia (BNS.TO) and Royal Bank of Canada (RY.TO) are both lower by about 1%.

Wheaton Precious Metals (WPM.TO) is rising nearly 5%. Kinross Gold Corp (K.TO) is gaining 1.8% and Canadian Natural Resources (CNQ.TO) is up 1.5%. Barrick Gold Corp (ABX.TO) and Shopify Inc. (SHOP.TO) are up 1.4% and 1.3%, respectively.

Yamana Gold Inc. (YRI.TO) reported that its second-quarter adjusted net earnings were $63.3 million or $0.07 per share compared to adjusted net earnings of $19.8 million or $0.02 per a year earlier. The stock is up nearly 6%.

Teck Resources (TECK.B.TO) is down by about 2.8%. The company reported adjusted basic earnings of C$0.17 per share for the second-quarter for the current year, compared with adjusted basic earnings of C$0.88 a year ago.

In commodities, West Texas Intermediate Crude oil futures for September are down $0.19 or 0.46% at $40.88 a barrel.

Gold futures for August are up $7.20 or about 0.4% at $1,897.20 an ounce, while Silver futures for September are down $0.108 or 0.47% at $22.880 an ounce.

U.S.-China tension have escalated after China revoked the license of the U.S. consulate in Chengdu, saying it is a “legitimate and necessary response to the unreasonable actions of the United States.” Just a couple of days ago, the U.S. government had ordered China to close its consulate in Houston, Texas.