Canadian Stocks Are Falling On Global Cues -- Canadian Commentary

(RTTNews) - The Canadian stock market is declining in early trade Monday, extending its losses from the previous two trading sessions. Nearly every Canadian sector is trading in the red this morning. Healthcare, industrials, financial and mining stocks are among the weakest performers.

The majority of the European markets are trading in the red Monday. Greece remains in focus amid reports that its creditors are losing patience with the country's uncompromising and incomprehensible stance on its debt obligations. The Greek government and its creditors are set to resume their talks in Brussels on Monday, after the both parties failed to reach an agreement on deal last week.

Markets in the United States are also under pressure at the start of the new trading week. Traders continue to react to last week's jobs data, due to the lack of U.S. economic data today. Investors are looking ahead to retail sales report, which is due out later in the week.

The benchmark S&P/TSX Composite Index is down 148.69 points or 0.99 percent at 14,808.47.

On Friday, the index closed down 62.23 points or 0.41 percent, at 14,957.16. The index scaled an intraday high of 15,060.90 and a low of 14,946.00.

The Diversified Metal and Mining Index is falling by 1.31 percent. First Quantum Minerals (FM.TO) is declining by 2.49 percent and Capstone Mining (CS.TO) is losing 0.81 percent. Teck Resources (TCK-A.TO) is decreasing by 0.69 percent.

The Capped Health Care Index is down 1.31 percent. Extendicare (EXE.TO) is falling by 1.95 percent and Concordia Healthcare (CXR.TO) is losing 2.62 percent. Valeant Pharmaceuticals International (VRX.TO) is also declining by 1.22 percent.

The Capped Industrials Index is falling by 1.12 percent. Air Canada (AC.TO) is lower by 0.49 percent and AutoCanada (ACQ.TO) is decreasing by 1.34 percent. Canadian National Railway (CNR.TO) is lower by 1.31 percent and Canadian Pacific Railway (CP.TO) is sinking by 2.18 percent. Finning International (FTT.TO) is falling by 0.40 percent.

The Capped Information Technology Index is declining by 1.04 percent. BlackBerry (BB.TO) is losing 1.65 percent and Constellation Software (CSU.TO) is down 0.08 percent. Sierra Wireless (SW.TO) is decreasing by 1.46 percent.

The heavyweight Financial Index is lower by 0.77 percent. Toronto-Dominion Bank (TD.TO) is falling by 1.12 percent and Canadian Imperial Bank of Commerce (CM.TO) is lower by 1.02 percent. Bank of Montreal (BMO.TO) is dropping by 1.40 percent and Bank of Nova Scotia (BNS.TO) is losing 0.75 percent. National Bank of Canada (NA.TO) is down 0.91 percent and Royal Bank of Canada (RY.TO) is decreasing by 1.01 percent.

The Energy Index is decreasing by 0.73 percent. Crude oil prices were lower Monday morning amid demand concerns in the wake of lackluster economic data from around the world. Recent reports have hinted at underlying weakness in the Chinese economy, continued problems in Europe and a sluggish U.S. rebound from the winter lull.

Crescent Point Energy (CPG.TO) is lower by 1.32 percent and Suncor Energy (SU.TO) is falling by 0.58 percent. Cenovus Energy (CVE.TO) is declining by 1.22 percent and Encana (ECA.TO) is losing 0.66 percent. Canadian Oil Sands (COS.TO) is decreasing by 1.12 percent.

Bonterra Energy (BNE.TO) is dropping by 2.13 percent. The company announced that it intends to complete a non-brokered private placement of up to 1,200,000 common shares of its common shares, at a price of $32.00 per Common Share, for aggregate gross proceeds of up to $38.4 million.

The Gold Index is falling by 0.44 percent. Gold nudged higher Monday morning but failed to trim much of last week's losses ahead of a light period on the economic calendar.

Goldcorp (G.TO) is decreasing by 0.51 percent and Barrick Gold (ABX.TO) is lower by 0.42 percent. Kinross Gold (K.TO) is slipping by 0.16 percent and Eldorado Gold (ELD.TO) is losing 1.23 percent. Royal Gold (RGL.TO) is weakening by 1.05 percent.

The Capped Materials Index is also down 1.03 percent. Franco-Nevada (FNV.TO) is losing 1.70 percent and Silver Wheaton (SLW.TO) is declining by 1.25 percent. Potash Corp. of Saskatchewan (POT.TO) is falling by 1.51 percent and Agrium (AGU.TO) is lower by 1.12 percent.

The Capped Telecommunication Services Index is falling by 0.59 percent. BCE (BCE.TO) is lower by 0.26 percent and TELUS (T.TO) is losing 0.14 percent. Rogers Communication (RCI-A.TO) is also declining by 1.15 percent.

Ballard Power Systems (BLD.TO) is surging by 10.31 percent. The company announced that it has signed definitive license and supply agreements to support the planned deployment of an initial 33 fuel cell-powered buses in two Chinese cities. The deal has an estimated value of $10 million.

Cogeco Cable (CCA.TO) is advancing by 3.04 percent. The company announced that its Atlantic Broadband subsidiary has agreed to purchase substantially all of the assets of MetroCast Connecticut for US$200 million.

Velan (VLN.TO) is down 1.61 percent, after it announced that it has ended the lockout that it had declared on May 25 of its unionized employees in Montreal.

On the economic front, data from Statistics Canada showed that Canada's building permits increased C$7.8 billion in April, up from 11.6 percent in the previous month. The figures also contradicted expectations for a decline of 5.0 percent.

Canada's housing starts rose to 201,705 units in May, compared to an upwardly revised increase of 183,329 units in April, according to report from Canada Mortgage and Housing Corp. Economists were forecasting an increase of 185,000 units.

Chinese exports fell less than expected in May, while imports declined sharply lifting the trade surplus notably to an above expected level.

Exports dropped 2.5 percent in May from a year ago, data released by the General Administration of Customs showed Monday. Shipments were forecast to decline by 4.4 percent after contracting 6.4 percent in April.

At the same time, imports plunged 17.6 percent, bigger than a 10 percent fall forecast by economists. Imports had decreased 16.2 percent in April.

Consequently, the trade surplus rose to $59.49 billion from $34.1 billion in April. It was expected to rise to $44.8 billion.

Eurozone investor confidence declined to a four-month low in June, survey data from the think tank Sentix showed Monday. The investor confidence index fell to 17.1 in June from 19.6 in May. This was the lowest reading since February, when the score was 12.4. The reading was above the expected score of 18.9.

Germany's exports increased unexpectedly in April and industrial production rebounded at a faster-than-expected pace suggesting that the economy has not lost its steam.

Exports rose a seasonally and calender-adjusted 1.9 percent month-on-month in April, faster than previous month's 1.3 percent increase, provisional data from Destatis showed Monday.

This was the third consecutive rise in exports and came in contrast to a 0.4 percent drop forecast by economists.

Meanwhile, imports fell 1.3 percent in April from the prior month, in contrast to economists' expectations for a 0.5 percent rise. It was the first decrease in three months. In March, imports grew 2.4 percent.

Elsewhere, industrial production expanded 0.9 percent month-on-month in April, reversing a revised 0.4 percent fall in March, another report showed today. It was larger than an expected 0.5 percent increase and also the biggest growth seen so far this year.

In commodities, crude oil futures for July delivery are down $0.51 or 0.86 percent at $58.62 a barrel.

Natural gas for July is up 0.082 or 3.17 at $2.672 per million btu.

Gold futures for August are up $3.20 or 0.27 percent at $1,171.30 an ounce.

Silver for July is down $0.009 or 0.06 percent at $15.975 an ounce.