The Canadian stock market is experiencing a downturn on Tuesday, primarily affected by declines in the energy and materials sectors, attributed to the softening of crude oil and bullion prices.
The S&P/TSX Composite Index has decreased by 74.35 points, or 0.31%, standing at 24,028.36 slightly after midday. Significant losses are evident among major energy companies, with Canadian Natural Resources, Suncor Energy, Imperial Oil, Cenovus Energy, Pembina Pipeline, Tourmaline Oil Corp, Arc Resources, and Prairiesky Royalty all falling between 1% and 4%.
In the mining sector, Ivanhoe Mines has seen a drop of over 5%, while Capstone Corp is down nearly 5%. Both Lundin Mining and First Quantum Minerals have also decreased by about 4.5% and 4.4%, respectively. Other notable declines include Barrick Gold, Wheaton Precious Metals, Pan American Silver, and Endeavour Mining.
The market downturn extends beyond energy and mining, with Nutrien, Magna International, West Fraser Timber, and Quebecor among other significant decliners.
Conversely, Canadian Tire Corporation is seeing a positive gain of approximately 4.2%. Other companies showing a rise include Air Canada, Celestica Inc, Colliers International Group, Gildan Activewear, Descartes Systems Group, TFI International, GFL Environmental, Rogers Communications, Waste Connections, and Thomson Reuters, with shares appreciating between 1% and 3%.
On the economic front, Statistics Canada reports a widening of the nation's trade deficit to CAD 1.10 billion in August 2024, from a revised CAD 0.29 billion in July, surpassing market forecasts of a CAD 0.5 billion deficit. This marks the sixth consecutive monthly deficit and the most significant since May, as exports decreased by 1% and imports rose slightly by 0.3%.
In commodities, West Texas Intermediate Crude oil futures are down by $3.67, or 4.76%, at $73.47 per barrel. Gold futures have decreased by $33.70, or 1.27%, to $2,632.30 an ounce, while silver futures have fallen by $1.434, or 4.48%, to $30.570 an ounce.
