Canadian Stocks Turn Lower, Led By Energy -- Canadian Commentary

(RTTNews) - Toronto stocks are lower Friday mid=morning, with investors reacting to a report showing an unexpected rise in Canadian unemployment last month.

A sharp decline in crude oil prices is also contributing to market's weakness.

Investors are refraining from significant moves as a brewing financial crisis in Portugal has renewed concerns about the European economy.

Energy stocks are declining, tracking weak crude oil prices. Diversified materials and bank stocks are also lower.

Gold stocks are extending recent gains. Industrial and healthcare stocks are also edging higher.

The benchmark S&P/TSX Composite Index is down 23.32 points or 0.15 percent at 15,091.16. The index advanced to 15,138.72 earlier, after a weak start.

On Thursday, the index closed down 100.71 points or 0.66 percent at 15,114.48, after scaling an intraday high of 15,214.35 and a low of 15,100.15.

Among energy stocks, Suncor Energy Inc. (SU.TO), Crescent Point Energy Corp. (CPG.TO), Imperial Oil Limited (IMO.TO), Canadian Oil Sands Limited (COS.TO), Talisman Energy Inc. (TLM.TO) and Husky Energy Inc. (HSE.TO) are declining 0.6 to 1 percent, while Encana Corporation (ECA.TO) and ARC Resources Ltd. (ARX.TO) are down more than 1.5 percent.

Among diversified materials stocks, Lundin Mining Corporation (LUN.TO) is down 2.2 percent, Capstone Mining Corporation (CS.TO) is declining 1 percent and Sherritt International Corporation (S.TO) is lower by about 1.5 percent.

In the healthcare space, Catamaran Corporation (CCT.TO) is up nearly 2 percent, Valeant Pharmaceuticals Inc. (VRX.TO) is modestly higher, while Extendicare Inc. (EXE.TO) is down marginally.

In the industrial space, Canadian National Railway Company (CNR.TO), Canadian Pacific Railway (CP.TO) and WestJet Airlines (WJA.TO) are moving up 0.4 to 0.7 percent.

Among gold stocks, Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO), Agnico Eagle Mines Limited (AEM.TO) and Yamana Gold Inc. (YRI.TO) are advancing 1.2 to 2 percent. Meanwhile, Eldorado Gold Corporation (ELD.TO), Kinross Gold Corporation (K.TO) and B2Gold Corp. (BTO.TO) are modestly higher.

The big six banks are down in negative territory with marginal losses.

In corporate news, Transition Therapeutics Inc. (TTH.TO) shares are up 0.5 percent after the company announced that it has appointed Carl Damiani as its Chief Operating Officer. Damiani has held the roles of Vice-President of Business Development and Director of Business Development, since joining Transition in 2003.

Bombardier Inc. (BBD.TO) is up 0.3 percent. A workers union at the company's railcar production unit threatening to strike on Monday. Meanwhile, Bomardier Aerospace said Thursday that it is aiming to strengthen commercial aircraft networks in Latin America, Middle East and the Caribbean regions.

In commodities, crude oil prices are sharply lower on easing worries about supplies. Crude oil futures for August are down $1.60 or 1.57 percent at $101.33 a barrel.

Natural gas for August is up $0.012 or 0.29 percent at $4.132 per million btu.

Gold futures for August are down $3.40 or 0.25 percent at $1,335.80 an ounce.

Silver for September is down $0.055 or 0.26 percent at $21.453 an ounce. Meanwhile, copper is down $0.008 or 0.25 percent at $3.259 per pound.

In the currency market, the Canadian loonie is trading at 1.0717 against the U.S. dollar, down 0.63 percent from previous close.

On the economic front, Statistics Canada's report showed Canadian unemployment to have risen to 7.1 percent in June, up from 7.0 percent in the previous month.

The report showed employment change to have declined to a seasonally adjusted -9.4 thousand in June, from 25.8 thousand in May.