TSX Ends Lower As Commodity Prices Climb -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Friday, tracking declining global equity markets due largely to uncertainty ahead of the Federal Reserve's monetary policy meeting next week, and under pressure from commodity prices.

Even as the global markets struggled at the end of the trading week, the majority of the Canadian sectors ended in the red. The declines were led by the energy sector as crude oil prices pulled back, with gold stocks notably weaker on falling prices for the yellow metal.

Markets in Europe ended in the negative territory, with investors hesitant to take positions ahead of the Federal Reserve meet next week and economic data from China this weekend. China is due to release its industrial production and retail sales for August on Sunday.

Markets in the United States were also under pressure this morning, but still ended positive at close. Analysts are still split regarding whether the Federal Reserve will announce an increase in interest rates. While upbeat economic data points to the first rate hike in nearly a decade, the recent market volatility and concerns about developing economies may keep the Fed on hold.

A Labor Department report on Thursday showed U.S. producer prices for August to have come in flat, with a drop in energy prices offset by continued increase in service prices.

Meanwhile, consumer sentiment in the U.S. deteriorated significantly early September, a preliminary report from the University of Michigan showed.

The benchmark S&P/TSX Composite Index closed Friday at 13,461.39, down 108.50 points or 0.80 percent. The index scaled an intraday high of 13,523.46 and a low of 13,404.63.

On Thursday, the index closed up 38.04 points or 0.28 percent, at 13,569.89. The index scaled an intraday high of 13,643.54 and a low of 13,504.08.

The Diversified Metals & Mining Index dipped 0.15 percent as First Quantum Minerals (FM.TO) moved up 0.91 percent and Lundin Mining Corporation (LUN.TO) moved up 0.48 percent.

Teck Resources Limited (TCK-B.TO) fell 2.25 percent, while HudBay Minerals Inc. (HBM.TO) dropped 2.44 percent. Sherritt International Corp. (S.TO) dropped 1.90 percent.

The heavyweight Financial Index dropped 0.34 percent, as National Bank of Canada (NA.TO) gathered 0.18 percent and Royal Bank of Canada (RY.TO) inched up 0.06 percent.

Toronto-Dominion Bank (TD.TO) dropped 0.54 percent, Bank of Nova Scotia (BNS.TO) fell 0.97 percent, and Canadian Imperial Bank of Commerce (CM.TO) shed 0.24 percent.

Bank of Montreal (BMO.TO) shed 0.60 percent, after agreeing to acquire the transportation finance business from General Electric in the U.S. and Canada. Financial terms of the deal were not disclosed.

Crude oil ended lower amid speculation tha global supplies will continue to outpace demand and with Goldman Sachs projecting a steep drop in oil prices in the near future.

The Energy Index plummeted 3.06 percent, with U.S. crude oil futures for October delivery, the most actively traded contract, plunging $1.29 or 2.8 percent, to settle at $44.63 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) fell 0.66 percent, Canadian Natural Resources Limited (CNQ.TO) shed 3.81percent, and Cenovus Energy (CVE.TO) fell 2.64 percent.

Encana Corp. (ECA.TO) dipped 0.10 percent, Suncor Energy Inc. (SU.TO) fell 2.71 percent, and Canadian Oil Sands (COS.TO) lost 3.08 percent.

Gold futures ended lower after some better than expected inflation data lifted the prospects of an immediate rate hike, as investors await the Federal Reserve's decision for a hike in the upcoming meet next week.

The Gold Index gained 1.01 percent, with gold for December delivery shedding $6.00 or 0.5 percent, to settle at $1,103.30 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 3.98 percent, Barrick Gold (ABX.TO) added 2.55 percent, Eldorado Gold (ELD.TO) climbed 1.69 percent, and Kinross Gold Corp. (K.TO) shed 1.47 percent.

The Capped Materials Index added 0.36 percent, with Agnico Eagle Mines Limited (AEM.TO) up 1.77 percent, Agrium Inc. (AGU.TO) down 0.40 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.34 percent.

The Capped Health Care Index slipped 0.57 percent, as Valeant Pharmaceuticals International (VRX.TO) fell 1.12 percent, Extendicare Inc. (EXE.TO) shed 1.24 percent, and Concordia Healthcare Corp. (CXR.TO) gained 0.64 percent.

The Capped Information Technology Index dipped 0.02 percent, as BlackBerry Limited (BB.TO) ended flat at $9.76 a share, and Descartes Systems Group (DSG.TO) surged 4.34 percent.

The Capped Telecommunication Index dropped 1.13 percent, as Rogers Communication (RCI-B.TO) fell 0.18 percent, BCE Inc. (BCE.TO) shed 1.63 percent, and TELUS Corp. (T.TO) surrendered 1.09 percent.

The Capped Industrials Index shed 0.84 percent, as Bombardier (BBD-B.TO) fell 1.06 percent, Finning International Inc. (FTT.TO) dropped 0.60 percent, and Air Canada surrendered 0.25 percent.

Canaccord Genuity (CF.TO) dropped 0.54 percent, after the company's Board named Daniel Daviau as its new President and Chief Executive Officer, effective October 1.

Enghouse Systems (ESL.TO) gained 1.35 percent after reporting third quarter earnings of $0.30 per share, compared to $0.27 per share in the prior year.

On the economic front, German consumer price inflation remained stable as initially estimated in August, final data from Destatis showed Friday. The consumer price index rose 0.2 percent year-on-year, the same as in July. The rate matched the preliminary estimate published on August 28. The measure climbed for a seventh month running.

Germany's wholesale prices declined at a faster pace in August, figures from Destatis showed Friday. Wholesale prices dropped 1.1 percent year-over-year in August, following a 0.5 percent stable rate of decrease in the previous month. The wholesale price index has been falling since July 2013.

The French current account balance turned to deficit in July largely due to the decline in surplus on services, the Bank of France showed Friday. The current account deficit totaled EUR 0.4 billion in July compared to a surplus of EUR 0.8 billion in June.

U.K. construction output decreased unexpectedly in July after recovering in the previous month, figures from the Office for National Statistics showed Friday. The volume of construction output fell a seasonally adjusted 1.0 percent month-over-month in July, reversing a 0.9 percent increase in June. Economists had expected a 0.5 percent climb for the month.