The Canadian stock market got off to a positive start Wednesday, but has since pared its early gains and has slipped into the red. The pullback in commodity prices is weighing on shares of gold and energy stocks this morning.
The majority of the European markets are trading modestly to the upside Wednesday.
Markets on Wall Street are struggling to find direction in early trade. Investors remain in a cautious mood as Federal Reserve Chairman Jerome Powell delivers his second day of testimony on Capitol Hill, with the central bank chief appearing before the House Financial Services Committee.
The benchmark S&P/TSX Composite Index is down 25.54 points or 0.15 percent at 16,493.70.
On Tuesday, the index closed up by 24.51 points or 0.15 percent, at 16,519.24. The index scaled an intraday high of 16,546.26 and a low of 16,445.23.
The Energy Index is falling 1.21 percent. Crude oil prices are down Wednesday morning after data from the American Petroleum Institute showed an unexpected weekly rise in U.S. crude supplies during the week ended July 13, defying expectations for a big fall.
U.S. crude supplies rose by 629,000 barrels for the week while gasoline stocks rose by 425,000 barrels.
Canadian Natural Resources (CNQ.TO) is losing 1.61 percent and Crescent Point Energy (CPG.TO) is weakening by 1.28 percent. Suncor Energy (SU.TO) is lower by 0.85 percent and Husky Energy (HSE.TO) is declining 1.94 percent. Imperial Oil (IMO.TO) is losing 0.64 percent and Cenovus Energy (CVE.TO) is decreasing 1.67 percent. Enbridge (ENB.TO) is surrendering 0.75 percent and Encana (ECA.TO) is falling 2.04 percent.
The Gold Index is decreasing 0.35 percent. Gold prices are falling Wednesday, extending losses from the previous session. A bullish outlook from Federal Reserve Chairman Jerome Powell has strengthened the dollar.
Kinross Gold (K.TO) is falling 1.41 percent and IAMGOLD (IMG.TO) is down 0.13 percent. B2Gold (BTO.TO) is declining 1.47 percent and Yamana Gold (YRI.TO) is lower by 1.32 percent. Barrick Gold (ABX.TO) is weakening by 1.61 percent.
The Capped Materials Index is down 0.25 percent. Agnico Eagle Mines (AEM.TO) is weakening by 0.22 percent.
The Capped Healthcare Index is higher by 1.09 percent. ProMetic Life Sciences (PLI.TO) is up 4.55 percent and Extendicare (EXE.TO) is advancing 0.84 percent.
The Capped Industrials Index is up 0.47 percent. Canadian National Railway (CNR.TO) is rising 1.43 percent and Canadian Pacific Railway (CP.TO) is higher by 1.50 percent. Air Canada (AC.TO) is climbing 3.82 percent and WestJet Airlines (WJA.TO) is gaining 2.32 percent. Finning International (FTT.TO) is increasing 1.05 percent.
The Capped Information Technology Index is gaining 0.30 percent. Descartes Systems Group (DSG.TO) is up 0.40 percent and Sierra Wireless (SW.TO) is climbing 0.94 percent.
The heavyweight Financial Index is increasing 0.08 percent. Bank of Montreal (BMO.TO) is rising 0.60 percent.
On the economic front, Euro area annual inflation accelerated in June, exceeding the European Central Bank's target of "below, but close to 2 percent", final data from Eurostat confirmed Wednesday.
The annual inflation rate rose to 2 percent from 1.9 percent in May, in line with the flash estimate release on June 29.
Eurozone's construction output growth improved for a third straight month, preliminary data from Eurostat showed Wednesday.
Construction output rose 1.8 percent year-on-year after a 1.2 percent increase in April. Output climbed for a third straight month after stagnation in February.
UK inflation remained stable for the second straight month in June, the Office for National Statistics reported Wednesday.
Consumer prices climbed 2.4 percent year-over-year in June, the same rate of increase as in the previous two months. Meanwhile, the inflation was expected to accelerate to 2.6 percent.
UK house prices rose at their slowest pace in nearly five years during May, latest data from the Office for National Statistics showed Wednesday.
Average house prices rose 3 percent year-on-year after a 3.5 percent increase in April.
After reporting a sharp increase in new residential construction in the U.S. in the previous month, the Commerce Department released a report on Wednesday showing a much steeper than expected pullback in housing starts in the month of June.
The Commerce Department said housing starts plunged by 12.3 percent to an annual rate of 1.173 million in June after jumping by 4.8 percent to a revised rate of 1.337 million in May.
Economists had expected housing starts to drop by 2.2 percent to a rate of 1.320 million from the 1.350 million originally reported for the previous month.
Building permits, an indicator of future housing demand, also fell by 2.2 percent to an annual rate of 1.273 million in June after tumbling by 4.6 percent to a rate of 1.301 million in May.
The continued decrease came as a surprise to economists, who had expected building permits to climb to an annual rate of 1.330 million.
In commodities, crude oil futures for August delivery are down 0.69 or 1.01 percent at $67.39 a barrel.
Natural gas for August is down 0.01 or 0.36 percent at $2.73 per million btu.
Gold futures for August are down 4.30 or 0.35 percent at $1,223.00 an ounce.
Silver for September is down 0.187 or 1.20 percent at $15.43 an ounce.
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