TSX Ends Lower Amid Rate Hike Speculations -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Tuesday, tracking declining global markets following two days of sharp losses as commodity prices plunged to five-year lows with the Federal Reserve indicating a rate hike this year on signs of an improving U.S. economy.

Markets in Europe ended in the red after a 9-session winning streak. Greece cleared its first hurdle in the bailout crisis by repaying the International Monetary Fund and the European Central Bank with the European Commission's EUR 7.16 billion bridge-loan. The Greek government also paid money owed to the Greece's central bank. In total, the government repaid EUR 6.8 billion to its creditors.

Markets in the United States also ended in negative territory, with the Dow Jones shedding 1 percent. The lack of major U.S. economic data appears to have kept traders on the sidelines amid lingering uncertainty over the outlook for interest rates.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,376.24, down 49.31 points or 0.34 percent. The index scaled an intraday high of 14,511.99 and a low of 14,335.76.

On Monday, the index closed down 217.29 points or 1.48 percent, at 14,425.55. The index scaled an intraday high of 14,630.51 and a low of 14,405.06.

Gold futures slipped for a ninth straight session after having plunged over two percent yesterday, with investors continuing to stay away from the precious metal amid speculation the U.S. Federal Reserve will react to the improving economy and raise interest rates this fall.

The Gold Index gained 2.27 percent, although gold for August delivery dropped $3.30 or 0.3 percent, to settle at $1,103.50 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) gained 1.97 percent, Barrick Gold Corp. (ABX.TO) added 1.04 percent, and Yamana Gold Inc. (YRI.TO) moved up 1.47 percent.

The Capped Materials Index added 0.89 percent, as Agrium Inc. (AGU.TO) gained 0.94 percent and Agnico Eagle Mines Limited (AEM.TO) added 2.24 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) inched up 0.08 percent.

Crude oil futures ended higher ahead of the official weekly oil report from the Energy Information Administration on Wednesday, even as the dollar trended lower against some major currencies. The American Petroleum Institute will release its inventories report later in the day for the week ended July 17.

The Energy Index gained 0.38 percent, with U.S. crude oil futures for September delivery, the most actively traded contract, gaining $0.42 or 0.8 percent, to settle at $50.86 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) fell 1.51 percent, while Pacific Rubiales Energy Corp. (PRE.TO) surged 9.49 percent. Crescent Point Energy Corp. (CPG.TO) inched up 0.46 percent, while Encana Corp. (ECA.TO) moved up 0.26 percent.

The Diversified Metals & Mining Index inched up 0.01 percent, as First Quantum Minerals Ltd. (FM.TO) added 0.65 percent, and HudBay Minerals (HBM.TO) fell 1.76 percent.

Sherritt International (S.TO) jumped 5.92 percent, while Teck Resources Limited (TCK-B.TO) added 0.56 percent. Lundin Mining Corp. (LUN.TO) dropped 1.90 percent.

The heavyweight Financial Index shed 0.45 percent, as National Bank of Canada (NA.TO) inched up 0.09 percent, and Bank of Montreal (BMO.TO) dropped 0.62 percent.

Canadian Imperial Bank of Commerce (CM.TO) fell 0.21 percent, Royal Bank of Canada (RY.TO) surrendered 0.70 percent, and Bank of Nova Scotia (BNS.TO) declined 0.80 percent.

Toronto-Dominion Bank (TD.TO) dropped 0.46 percent, after announcing that it expects TD Ameritrade's third quarter earnings to translate into a contribution of approximately CDN$92 million to its third quarter net income.

The Capped Health Care Index slipped 0.54 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) fell 0.14 percent and Concordia Healthcare Corp. (CXR.TO) dipped 0.22 percent.

The Capped Information Technology Index moved up 0.20 percent, as BlackBerry Limited (BB.TO) gained 1.60 percent and Constellation Software (CSU.TO) added 2.57 percent.

Descartes Systems Group (DSG.TO) jumped 3.24 percent, after it agreed to acquire MK Data Services.

The Capped Telecommunication Index shed 1.65 percent, as Rogers Communication (RCI-B.TO) fell 1.25 percent, TELUS Corp. (T.TO) shed 1.89 percent, and BCE Inc. (BCE.TO) dropped 1.85 percent.

The Capped Industrials Index surrendered 1.19 percent. Canadian Pacific Railway (CP.TO) gained 0.85 percent and (CNR.TO) is gaining 1.41 percent. The company has recommended that its shareholders reject the unsolicited mini-tender offer made by TRC Capital Corp. to purchase up to 2,000,000 of its common shares.

Bombardier (BBD-A.TO) shed 3.05 percent. The company yesterday announced the appointment of John Di Bert as Senior Vice President and Chief Financial Officer, effective August 10, 2015.

Canadian National Railway (CNR.TO) gained 2.17 percent after reporting second quarter adjusted earnings of C$1.15 per share, up from C$1.03 per share in the previous year. Analysts expected earnings of C$1.05.

Canadian Pacific Railway (CP.TO) plunged 5.51 percent. The company reported second quarter adjusted earnings C$2.45, which fell short of the consensus estimate of C$2.46.

On the economic front, U.K. public sector net borrowing decreased in June from last year, the Office for National Statistics said Tuesday. Excluding public sector banks, PSNB dropped GBP 0.8 billion to GBP 9.4 billion in June. It was equivalent to 0.5 percent of gross domestic product.

Foreign direct investment in China grew 0.7 percent in June from a year ago to $14.6 billion, the Chinese Commerce Ministry reported Tuesday. In the first six months, FDI climbed 8.3 percent from last year to $68.4 billion. Investment in manufacturing, however, dropped 8.4 percent.

The leading index for Japan, which measures the future economic activity, dropped as estimated in May, final figures from the Cabinet Office showed Tuesday. The index dropped to 106.2 in May from 106.4 in the previous month. This was in line with the preliminary data. In March, the score was 105.2.