TSX Ends Lower As Commodity Prices Decline -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Friday, following the gains of the previous two days with most sectors of the market in the red on some disappointing economic data domestically and from the U.S.

The main index was also driven by weakness in mining and energy stocks with commodity prices under pressure after the International Energy Agency warned global oil prices may fall further as supplies continue to rise, with U.S. producers continuing to pump crude despite tightening storage facilities.

Markets in Europe are turned in a mixed performance at the end of the trading week, after early gains eroded. The decline in oil prices was partly responsible for the pull back, as well as the weak performance of U.S. equities.

Markets in the United States ended in negative territory, tracking plunging crude oil prices and some disappointing economic data weighing on the markets.

Investors also mulled over some disappointing economic data after a U.S. Labor Department report showed producer prices to have unexpectedly declined in February, although analysts say the drop was primarily due to a quirk in the calculation of margins.

Consumer sentiment in the U.S. also unexpectedly deteriorated in March, preliminary results of a survey by the University of Michigan showed Friday.

The benchmark S&P/TSX Composite Index closed Friday at 14,731.50, down 39.22 points or 0.27 percent. The index scaled an intraday high of 14,738.93 and a low of 14,606.19.

On Thursday, the index closed up 31.52 points or 0.21 percent, at 14,770.72. The index scaled an intraday high of 14,809.06 and a low of 14,719.68.

Gold futures ended a shade higher on some disappointing economic news from the U.S., even as the dollar trended higher against a basket of some major currencies.

The Gold Index gained 0.82 percent, with gold for April delivery inching up $0.50 to settle at $1,152.40 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Kinross Gold Corp (K.TO) fell 0.67 percent. Eldorado Gold Corp. (ELD.TO) added 3.17 percent, Barrick Gold Corp. (ABX.TO) gained 0.44 percent, Yamana Gold Inc. (YRI.TO) jumped 5.99 percent, and IAMGOLD (IMG.TO) fell 1.98 percent.

Goldcorp (G.TO) gained 2.2 percent after news that its subsidiary, Minera Peñasquito, has reached a definitive court approved settlement with the Cerro Gordo Ejido relating to surface land rights.

B2Gold (BTO.TO) surrendered 2.11 percent after reporting a fourth quarter loss of $0.39 per share, compared to a profit of $0.04 per share last year.

Centerra Gold (CG.TO) jumped 4.60 percent, after Ian Atkinson, President and Chief Executive Officer of the company announced his retirement plans.

The Capped Materials Index added 0.34 percent, due mainly to gains in gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) dipping 0.10 percent and Agrium Inc. (AGU.TO) ending 0.38 percent higher.

Franco-Nevada (FNV.TO) gained 1.20 percent, while Agnico Eagle Mines (AEM.TO) inched up 0.25 percent. Silver Wheaton (SLW.TO) gathered 2.42 percent.

Crude oil plummeted to end over 4 percent lower on Friday, after the International Energy Agency warned global prices may fall further as supplies continue to mount, with U.S. producers still pumping crude despite tightening storage facilities.

The Energy Index dropped 0.54 percent, with U.S. crude oil futures for April delivery, plunging $2.21 or 4.7 percent to settle at $44.84 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) dropped 0.84 percent, Suncor Energy Inc. (SU.TO) dipped 0.11 percent, Canadian Natural Resources Limited (CNQ.TO) added 0.30 percent, and Encana Corp. (ECA.TO) surrendered 0.93 percent.

Crescent Point Energy Corp. (CPG.TO) fell 0.57 percent, while Cenovus Energy Inc. (CVE.TO) dropped 0.42 percent.

Perpetual Energy (PMT.TO) soared 25.00 percent, after selling its interest in the West Edson area of the Alberta Deep Basin to Tourmaline Oil (TOU.TO). Tourmaline added 0.53 percent.

The heavyweight Financial Index dropped 0.71 percent, with Bank of Nova Scotia (BNS.TO) down 0.57 percent, and Bank of Montreal (BMO.TO) fell 0.81 percent.

National Bank of Canada (NA.TO) surrendered 1.36 percent, while Toronto-Dominion Bank (TD.TO) dropped 0.61 percent. Canadian Imperial Bank of Commerce (CM.TO) fell 0.69 percent.

Royal Bank of Canada (RY.TO) shed 0.86 percent. The company closed its domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BF.

The Diversified Metals & Mining Index fell 0.97 percent, as First Quantum Minerals Ltd. (FM.TO) rose 0.36 percent, Lundin Mining Corp. (LUN.TO) shed 2.14 percent, and Teck Resources Limited (TCK-B.TO) fell 1.95 percent.

The Health Care Index gained 1.28 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 3.25 percent.

Among other health care stocks, Extendicare Inc. (EXE.TO) added 0.56 percent, while Catamaran Corp. (CCT.TO) dropped 0.74 percent.

The Capped Industrials Index dipped 0.08 percent, with Bombardier Inc. (BBD.B.TO) down 1.63 percent and Air Canada (AC.TO) down 1.45 percent.

The Information Technology Index surrendered 0.90 percent, with BlackBerry Limited (BB.TO) shedding 0.79 percent and Constellation Software Inc. (CSU.TO) dipping 2.21 percent. Sierra Wireless, Inc. (SW.TO) added 2.12 percent and Descartes Systems Group Inc. (DSG.TO) fell 1.28 percent.

The Capped Telecommunication Index dropped 0.21 percent, with Rogers Communications Inc. (RCI.B.TO) dropping 0.28 percent, BCE Inc. (BCE.TO) slipped 0.04 percent and TELUS Corp. (T.TO) surrendered 0.89 percent.

Stella-Jones Inc. (SJ.TO) shed 0.84 percent after reporting fourth quarter net income of C$0.33 per share, up from C$0.29 per share last year. Analysts expected earnings of C$0.36 per share.

On the economic front, Canadian employment was little changed in February, but the jobless rate reached its highest level since September. Statistics Canada reported that employment decreased by 1,000 jobs, while economists expected jobs to decline by 5,000. Meanwhile, the jobless rate climbed to 6.8 percent from 6.6 percent last month. Economists had expected 6.7 percent.

In economic news from the U.S., producer prices unexpectedly declined in February, a report from the Labor Department showed Friday, although analysts said the drop was primarily due to a quirk in the calculation of margins. The producer price index for final demand fell by 0.5 percent in February after slumping by 0.8 percent in January. Economists expected producer prices to rise by about 0.3 percent.

Consumer sentiment in the U.S. unexpectedly deteriorated in March, preliminary results of a survey by the University of Michigan showed. Consumer sentiment index tumbled to 91.2 in March from the final February reading of 95.4. Economists expected the consumer sentiment index to inch up to a reading of 96.0.

With a drop in manufacturing inventories offsetting an increase in wholesale inventories, the Commerce Department's report on Thursday showed U.S. business inventories were nearly flat in January. Business inventories came in nearly unchanged for the second consecutive month in January. Economists expected inventories to edge up by 0.1 percent.

Wholesale inventories rose by 0.3 percent in January after coming in unchanged in December, while manufacturing inventories fell by 0.4 percent for the second straight month. The report also showed that retail inventories were flat in January after climbing by 0.5 percent in the previous month.

From the eurozone, Germany's wholesale prices declined at a slower pace in February, data from Destatis showed Friday. Wholesale prices decreased 2.1 percent year-on-year in February, slower than the 2.6 percent decline seen in January. The wholesale price index has been declining since July 2013.

U.K. construction output declined unexpectedly in January, marking its first annual fall in nearly two years, dampened by weaker housing, data from the Office for National Statistics revealed Friday. Construction output dropped 3.1 percent year-on-year, in contrast to a 5.3 percent growth in December. Economists had forecast a gain of 2.1 percent. This was the first year-on-year decrease since May 2013 when it fell by 2.8 percent, the ONS said.