Canadian Stocks Are Down As Crude Oil Prices Fall -- Canadian Commentary

(RTTNews) - The Canadian stock market is declining in early trade Monday, pulling back from the highest levels of the year. However, the markets have come off their early lows. The energy sector is the weakest performer this morning, as crude oil prices head lower. Gains in mining and industrial stocks are helping to offset the downside.

Markets in Europe got off to a positive start Monday, but have gradually pared their gains as they settle into a sideways pattern. Investors are turning more cautious ahead of several central bank meetings this week. The Bank of Japan, the Federal Reserve and the Bank of England will all wrap up their respective meetings this week.

Markets in the United States are trading slightly to the downside Monday morning. Profit taking is partly responsible for the dip, following the strong performance of the last few weeks. The lack of U.S. economic data and the pullback in crude prices are also contributing to the weakness.

The benchmark S&P/TSX Composite Index is down 47.24 points or 0.35 percent at 13,474.76.

On Friday, the index closed up 142.86 points or 1.07 percent, at 13,522.00. The index scaled an intraday high of 13,543.29 and a low of 13,434.45.

The Energy Index is declining 2.10 percent. Crude oil prices are down Monday, falling from yearly highs amid speculation that the recent 45 percent run-up was overdone.

Cenovus Energy (CVE.TO) is falling 1.67 percent and Husky Energy (HSE.TO) is surrendering 2.30 percent. Encana (ECA.TO) is weakening 3.36 percent and Suncor Energy (SU.TO) is down 1.68 percent. Canadian Oil Sands (COS.TO) is lower by 1.65 percent and Crescent Point Energy (CPG.TO) is losing 3 percent. Imperial Oil (IMO.TO) is decreasing 0.91 percent and Pacific Exploration & Production (PRE.TO) is tumbling 7.55 percent. Canadian Natural Resources (CNQ.TO) is losing 1.66 percent and Enbridge (ENB.TO) is down 2.53 percent.

The Gold Index is down 0.69 percent. Gold prices are falling this morning, ahead of the Federal Reserve meeting.

IAMGOLD (IMG.TO) is declining 2.41 percent and Yamana Gold (YRI.TO) is down 0.72 percent. Kinross Gold (K.TO) is losing 0.77 percent and Goldcorp (G.TO) is falling 0.83 percent. Royal Gold (RGL.TO) is weakening by 2.93 percent.

The Capped Health Care Index is down 0.75 percent. Valeant Pharmaceuticals International (VRX.TO) is losing 3.37 percent and Concordia Healthcare (CXR.TO) is falling 0.48 percent.

The Capped Telecommunication Services Index is falling 0.46 percent. BCE (BCE.TO) is down 0.07 percent and TELUS (T.TO) is declining 0.59 percent. Manitoba Telecom Services is losing 0.51 percent.

The Capped Information Technology Index is lower by 0.46 percent. Constellation Software (CSU.TO) is down 0.58 percent and Avigilon (AVO.TO) is falling 1.12 percent. Sierra Wireless (SW.TO) is declining 0.59 percent and Descartes Systems Group (DSG.TO) is losing 0.57 percent. BlackBerry (BB.TO) is also weakening by 0.47 percent.

The heavyweight Financial Index is dipping 0.05 percent. Bank of Montreal (BMO.TO) is down 0.04 percent and Toronto-Dominion (TD.TO) is decreasing 0.29 percent. Royal Bank of Canada (RY.TO) is falling 0.20 percent.

The Diversified Metal and Mining Index is climbing 0.58 percent. First Quantum Minerals (FM.TO) is rising 0.95 percent and Teck Resources (TCK-B.TO) is gaining 1.33 percent. Lundin Mining (LUN.TO) is also adding 0.24 percent.

The Capped Industrials Index is gaining 0.43 percent. Finning International (FTT.TO) is rising 1.52 percent and Air Canada (AC.TO) is up 1.31 percent. Canadian Pacific Railway (CP.TO) is increasing 0.80 percent and Canadian National Railway (CNR.TO) is adding 0.53 percent.

The Capped Materials Index is also up 0.29 percent. Agnico Eagle Mines (AEM.TO) is advancing 0.44 percent and Silver Wheaton (SLW.TO) is higher by 0.75 percent. Agrium (AGU.TO) is increasing 1.78 percent and Potash Corp. of Saskatchewan (POT.TO) is gaining 1.57 percent.

On the economic front, China's industrial production grew at the slowest pace since the financial crisis and retail sales rose at a slower pace at the start of the year, adding pressure on policymakers to roll out new measures to kick start economic activity.

Industrial production expanded 5.4 percent in January and February, which was slower than the 5.9 percent increase seen in December, data published by the National Bureau of Statistics showed over the weekend.

This was the weakest growth since late 2008. Economists had forecast 5.6 percent growth for January to February.

Retail sales growth for the first two months of 2016 came in at 10.2 percent compared to 11.1 percent growth registered in December. The increase was slower than the consensus estimate of 11 percent growth and was the slowest since May 2015.

Eurozone industrial production rebounded at the fastest pace in more than six years, signaling that the manufacturing sector weathered the global slowdown at the start of the year.

Industrial production grew 2.1 percent month-on-month, partly reversing a revised 0.5 percent fall in December, data from Eurostat revealed Monday.

Production growth was the fastest since September 2009, when output climbed 2.3 percent. Economists had forecast a 1.7 percent rise for January after the initially estimated 1 percent decrease.

In commodities, crude oil futures for April delivery are down 1.54 or 4.00 percent at $36.96 a barrel.

Natural gas for April is up 0.001 or 0.05 percent at $1.823 per million btu.

Gold futures for April are down $11.50 or 0.91 percent at $1,247.90 an ounce.

Silver for May is down $0.055 or 0.35 percent at $15.55 an ounce.