Markets resumed their drift lower this morning, with the TSE 300 shedding another 34 points to 7,499.

Volume has been very weak, with just 47.5 million shares changing hands so far.

Selling volume is outweighing the buying by a margin of two to one, and down stocks outnumber up stocks by about ten to seven.

Despite the negative market internals, there’s no decisive weakness among the sectors. Techs are down, as are engineering stocks. Energy producers are weak, utilities, conglomerates and financials are all down, too.

Miners are bouncing nicely, as are a few consumer groups, golds and real estate stocks.

It’s the sellers that are holding sway over the volume though, led by Nortel Networks, down 1.3% on more than 5.1 million shares.

There’s also light selling, on decent volume, in names such as C-Mac and Celestica. Mosaid Technologies, Research in Motion, Tundra Semi, Microcell, Bell Canada International, Alcatel, Pivotal and Ballard Power are all down, too.

Apart from techs, which are selling on profit uncertainty, there’s a pullback in CP. As well, sector leaders such as Precision Drilling, Bombardier, CIBC and Empire, are all driving their respective groups down.

The only volume leader on the upside is Barrick Gold. There are low volume price gains in names such as Open Text, Teck, CCL, Slocan Forest, Intertape Polymer, PRT Forest and Centrefund.

In business news, Brookfield Properties Corp reports that holders of warrants and convertible debentures have been converting their holdings into stock, spelling a 5.1 million common shares, which will be issued into the common share float. About US$75 million will be added to the company’s common equity base as a result, without any dilution to shareholders.

Mosaic Technologies is reporting that its net earnings were $115,000 for the previous quarter, or 1¢ per share.

Axcan Pharma is reporting that its net earnings were $2.8 million, or 8¢ per share, for the three months ended June 30, compared with 11¢ in the period last year.

In New York, the song is much the same. Low volume markets are grinding their way lower. The Dow Jones industrial average is down 42 points to 10,304. The Nasdaq composite index has dropped another 34 points to sit below 1,900, at 1,885. The S&P 500 is down 10 ticks to 1,168. Dwindling hopes for an economic recovery seems to be the culprit, coupled with the usual rash of weak earnings and forecasts.

The CDNX is down today, too, off six points to 3,084. Volume is on the weak side at 12 million shares. Techs are up, but miners and oils are both down. Conquistador Mines is the top trader, flat at 1¢, with 1.1 million shares crossing the tape.