Commodities Drag TSX Lower Thursday Morning - Canadian Commentary

(RTTNews) - Canadian stocks were lingering in the red Thursday morning amid weak commodities after the European Central Bank unexpectedly cut its key interest rate to a new record low to rev up its economy and on mixed cues from the global equity markets.

Asian markets settled on a mixed note overnight as investors preferred to stay on the sidelines awaiting cues from the ECB meeting later. Meanwhile European shares were recovering from their early trading losses after the rate cut decision by the ECB.

The S&P/TSX Composite Index was down 21.55 points or 0.16 percent to 13,358.85.

The price of gold was moved down Thursday morning with the US dollar trading firm versus a basket of currencies amid the European Central Bank policy decision to trim interest rates following last week's sharp fall in inflation across the euro zone. Gold for December down $8.70 to $1,309.10 an ounce.

Among gold stocks, Royal Gold (RGL.TO) and Goldcorp. (G.TO) were down around 1 percent each, while Agnico-Eagle Mines (AEM.TO) adding over 1 percent.

The price of crude oil was moving lower Thursday morning amid a batch of macroeconomic data out of the US. Crude for December eased $0.75 to $94.05 a barrel.

In he oil patch, Pacific Rubiales Energy (PRE.TO) lost over 4 percent, while Trilogy Energy (TET.TO) and Suncor Energy (SU.TO) losing around 2 percent each.

Canadian Natural Resources (CNQ.TO) gathered nearly 1 percent after reporting a sharp surge in third-quarter 2013 net earnings to C$1.17 billion or C$1.07 per share from C$360 million or C$0.33 per share in the prior-year quarter. On an adjusted basis, net earnings from operations were C$1.0 billion or C$0.93 per share for the period.

Communications company BCE Inc. (BCE.TO) EDGE DUP 0.10 percent after it said its third-quarter 2013 earnings dropped to C$343 million or C$0.44 per share from C$527 million or C$0.68 per share last year. However, adjusted net earnings totaled C$584 million or C$0.75 per share in the recent quarter. Analysts expected earnings per share of C$0.77 for the third quarter.

Quick-service restaurant chain Tim Hortons Inc. (THI.TO) edged up 0.50 percent after reporting improved third quarter net income of C$113.86 million or C$0.75 per share compared to C$105.7 million or C$0.68 per share a year ago.

Manulife Financial Corp. (MFC.TO) rose over 2 percent after it swung to profit in third-quarter, reporting net income of C$1.001 billion compared to a loss of C$242 million last year. Earnings per share were C$0.54 compared to a loss of C$0.13 in the prior year quarter.

In economic news from the U.S., the Labor Department said initial jobless claims fell to 336,000 in the week ended November 2, a decrease of 9,000 from the previous week's revised figure of 345,000. Economists had expected claims to dip to 335,000 from the 340,000 originally reported for the previous week.

Separately, the Commerce Department said U.S. gross domestic product rose by 2.8 percent in the third quarter compared to economist estimates for an increase of 2.0 percent. GDP growth accelerated from the 2.5 percent increase in the second quarter, reflecting a deceleration in imports and accelerations in private inventory investment and state and local government spending.

From the euro zone, Germany's industrial production declined 0.9 percent in September from August, data from the Federal Ministry of Economics and Technology showed. Production was forecast to remain flat in September after rising by revised 1.6 percent in August. Production excluding energy and construction dipped 1.1 percent and construction output decreased 1.8 percent, it said.

Elsewhere, the Bank of England held its interest rates at record low 0.50 percent and GBP 375 billion quantitative easing.

Meanwhile, the European Central Bank unexpectedly cut its key interest rate to a new record low, after leaving it unchanged for five successive months. The bank cut the main refinancing rate by 25 basis points to a record low 0.25 percent. Previously, the bank slashed the rate by a quarter-point in May, which was the first reduction in nine months.