On Monday, U.S. equity markets, which had attempted to rebound in recent weeks, appeared to have stalled short of resistance levels. Meanwhile, commodity prices also appeared to be stabilizing following recent declines. Renewed support for commodities gave the resource-weighted Canadian indices a boost.

By Tuesday, commodities started to slide one again, and a number of tests of technically significant support levels appeared to be under way, which could suggest whether consolidation may continue or if another downleg was about to begin.

Wednesday saw North American indices building on Tuesday’s upward momentum and advancing toward significant resistance tests, suggesting that a higher low may now be in place – a sign that negative market sentiment might be easing and a significant rebound from the declines of early in the month may now be underway. Note that both U.S. equities and resource-weighted Canadian markets were rising, suggesting that this move may be related to renewed interest in equities and improved sentiment toward corporate earnings prospects and not just a reaction to softening commodity prices.

On Thursday, North American equity markets had a volatile morning, attempting to find direction following a number of economic data releases. Equities dropped on the news, but started clawing their way back toward even as the morning progressed. This action suggested that equity investors seemed to still be searching for direction, and because of this, markets could remain in their current trading ranges for some time. Commodities, meanwhile, were also affected by changing sentiment. Energy commodities rallied early in the day, but drifted into the late morning.

Note: There was no CMC Market report on Friday.

Canadian share update for the week of July 28 to August 1

Resource producers across a number of sectors were climbing on Monday, including energy producers Addax (TSX: T.AXC, Stock Forum), Nexen (TSX: T.NXY, Stock Forum), and Petro-Canada (TSX: T.PCA, Stock Forum), base metals companies Equinox (TSX: T.EQN, Stock Forum), Teck Cominco (TSX: T.TCK.B, Stock Forum), and Russel Metals (TSX: T.RUS, Stock Forum), uranium companies Uranium One (TSX: T.UUU, Stock Forum) and Cameco (TSX: T.CCO, Stock Forum), and coal producer Fording (TSX: T.FDG.UN, Stock Forum).

News of Teck Cominco’s (TSX: T.TCK.B, Stock Forum) acquisition of Fording Canadian Coal Trust (TSX: T.FDG.UN, Stock Forum) sparked new interest in the diversified mining sector Tuesday. Advancers in the sector included Labrador Iron Ore (TSX: T.LIF.UN, Stock Forum), FNX Mining (TSX: T.FNX, Stock Forum), HudBay (TSX: T.HBM, Stock Forum), Equinox (TSX: T.EQN, Stock Forum), and Lundin (TSX: T.LUN, Stock Forum).

Gold and precious metals producers were under pressure Wednesday, with leading decliners including Silver Wheaton (TSX: T.SLW, Stock Forum), Agnico-Eagle (TSX: T.AEM, Stock Forum), Goldcorp (TSX: T.G, Stock Forum), and Eastern Platinum (TSX: T.ELR, Stock Forum). However, base metal producers were advancing, including Teck Cominco (TSX: T.TCK.B, Stock Forum), HudBay (TSX: T.HBM, Stock Forum), Breakwater (TSX: T.BWR, Stock Forum), and Thomson Creek (TSX: T.TCM, Stock Forum). Energy producers were also forging ahead – leaders included Addax (TSX: T.AXC, Stock Forum), Suncor (TSX: T.SU, Stock Forum), and Canadian Oil Sands (TSX: T.COS.UN, Stock Forum).

Another major takeover was announced Thursday, as Goldcorp (TSX: T.G, Stock Forum) agreed to acquire Gold Eagle Mines (TSX: T.GEA, Stock Forum). Another spike in interest in the junior golds resulted, including High River Gold (TSX: T.HRG, Stock Forum), Novagold (TSX: T.NG, Stock Forum), and Gammon Gold (TSX: T.GAM, Stock Forum). Senior gold companies were also advancing, including Barrick Gold (TSX: T.ABX, Stock Forum), Agnico-Eagle (TSX: T.AEM, Stock Forum), and Yamana (TSX: T.YRI, Stock Forum).

Note: There was no CMC Market report on Friday.

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