The Canadian stock market was marginally down Monday morning after a subdued start.
Although early signs pointed to a positive opening for stocks on Bay Street, stocks failed to find support after a tweet from CNBC's Beijing Bureau Chief Eunice Yoon suggested Chinese officials have grown pessimistic about the chances for a trade deal due to U.S. President Donald Trump's reluctance to roll back tariffs.
"Mood in Beijing about #trade deal is pessimistic, government source tells me. #China troubled after Trump said no tariff rollback. (China thought both had agreed in principle.)" Yoon tweeted.
Cannabis shares declined sharply, dragging the Capped Healthcare Index down by nearly 3%. Energy shares were the other prominent losers.
Materials, consumer staples and real estate shares found some support. Information technology, industrial and financial shares were mixed.
The benchmark S&P/TSX Composite Index, moving in a narrow band of a little less than 30 points, was down 13.81 points, or 0.08%, at 17,014.66 a few minutes past noon.
On Friday, the index ended up 56.29 points, or 0.33%, at 17,028.47, a new closing high. The index touched a fresh record high of 17,035.96.
Aurora Cannabis Inc. (ACB.TO) declined nearly 11%. Aphria Inc. (APHA.TO) shed 8% and Hexo Corp (HEXO.TO) was down 6%. Canopy Growth Corp (WEED.TO) and Cronos Group Inc. (CRON.TO) were lower by 4% and 2.7%, respectively.
Among the stocks in the Energy Index, Encana Corp (ECA.TO), Baytex Energy (BTE.TO), ARC Resources (ARX.TO) and Crescent Point Energy (CPG.TO) lost 2.2 to 4.2% on strong volumes. Imperial Oil (IMO.TO), PrairieSky Royalty (PSK.TO), Vermilion Energy (VET.TO), Suncor Energy (SU.TO) and Cenovus Energy (CVE.TO) were also notably lower.
Barrick Gold Corporation (ABX.TO) gained about 2%. Australian firm Saracen Mineral Holdings Ltd said on Monday it would buy Barrick Gold Corp's 50% stake in the Super Pit gold mine in Western Australia for a consideration of $750 million.
Kinross Gold Corporation (K.TO) and B2Gold Corp (BTO.TO) were up 1.8% and 3%, respectively. Oceanagold Corp (OGC.TO) rallied nearly 5%.
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