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Falling gold, silver prices hurt miners

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Mullen Group ( MLLGF ) beats Q2 estimates, shares rise

(Updated at 10:18 a.m. ET/ 1418 GMT)

By Nikhil Sharma

July 25 (Reuters) - Canada's main stock index on

Thursday fell to its lowest in two weeks, led by precious metal

miners as gold and silver prices weakened, while investors

digested a host of corporate earnings and U.S. economic data.

At 10:18 a.m. ET (1418 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 124.64 points, or

0.55%, at 22,515.87, to its lowest level since July 11.

An index of Canadian gold miners dropped 3.1% and

the materials index fell 2.2%, as gold prices touched

a two-week low after data showed the world's largest economy

expanded faster than expected and inflation slowed in the second

quarter.

Silver prices also skidded, while copper dipped below

$9,000 per metric ton for the first time since April.

U.S. gross domestic product (GDP) grew faster than expected

to a 2.8% annualized rate in the second quarter, but inflation

subsided, leaving intact expectations for a September rate cut

by the Federal Reserve.

"The narrative we've heard in recent days and weeks about a

cooling U.S., seems like it's quite the opposite based on the

GDP numbers", said Douglas Porter, chief economist at BMO

Capital Markets.

"It's certainly a surprise that the economy was as strong as

it was in the second quarter."

Separately, U.S. weekly jobless claims fell lower than

expected in the week ended July 20, while unemployment rate rose

to a two-and-half year high of 4.1% in June.

The Bank of Canada (BoC) on Wednesday lowered its

interest rates by 25 basis points and indicated chances of more

cuts if inflation continues to ease in line with forecasts. The

central bank also reduced its 2024 economic growth outlook.

Among single stocks, Loblaw Companies ( LBLCF ) dropped 1.5%

after the retailer missed estimates for second-quarter revenue,

hurt by soft demand for some household items and non-essential

products such as apparel.

Mullen Group ( MLLGF ) jumped 8% to the top of TSX index,

after logistics provider's earnings beat estimates.