TSX Ends Lower As Energy, Mining Stocks Plummet -- Canadian Commentary

(RTTNews) - Canadian stocks slipped to end lower for a third straight session on Friday, tracking declining global markets with almost all sectors finishing in the red, led by falling energy stocks as oil prices slumped amid supply persistent glut fears.

Nearly every Canadian sector ended in the red, with energy, healthcare, industrials, financial and mining stocks among the weakest performers.

Markets in the United States also came under pressure at the start of the new trading week, with traders continuing to assess the impact of last week's jobs data, with little or no U.S. economic releases for the day. Investors now look ahead to the retail sales report among other data, due later in the week.

The majority of the European markets ended in negative territory with Greece in focus. Reports say Greece's international creditors are losing patience with the country's uncompromising and incomprehensible stance on its debt obligations. The Greek government and its creditors are set to resume talks in Brussels on Monday, after the both parties failed to reach an agreement on a deal last week.

Reports also said the Greek Prime Minister Alexis Tsipras is scheduled to meet German Chancellor Angela Merkel and French President François Hollande in Brussels on Wednesday.

The benchmark S&P/TSX Composite Index closed Monday at 14,743.33, down 213.83 points or 1.43 percent. The index scaled an intraday high of 14,939.12 and a low of 14,714.72.

On Friday, the index closed at 14,957.16, down 62.23 points or 0.41 percent. The index scaled an intraday high of 15,060.90 and a low of 14,946.00.

Gold futures settled higher tracking declining global equity markets with the dollar trending lower against a basket of major currencies.

The Gold Index added 0.39 percent, with gold for August delivery gaining $5.50 or 0.5 percent to settle at $1,173.60 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp Inc. (G.TO) inched up 0.05 percent, Barrick Gold Corp. (ABX.TO) fell 0.35 percent, Kinross Gold Corp. (K.TO) gained 2.95 percent, IAMGOLD Corp. (IMG.TO) jumped 4.69 percent and Eldorado Gold Corp. (ELD.TO) added 0.18 percent.

Detour Gold Corp. (DGC.TO) surged 6.51 percent.

The Capped Materials Index dropped 0.81 percent, with Agrium Inc. (AGU.TO) down 1.81 percent. Agnico Eagle Mines Limited (AEM.TO) moved up 1.38 percent, while Franco-Nevada Corp. (FNV.TO) slipped 1.13 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) dropped 1.99 percent.

Crude oil futures ended sharply lower on concerns over a slump in demand from China and the Organization of the Petroleum Exporting Countries maintaining its current production levels with persistent fears of a supply glut. Recent reports have hinted at underlying weakness in the Chinese economy, continued problems in Europe and a sluggish U.S. rebound from the winter lull.

The Energy Index plunged 2.39 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, dropping $0.99 or 1.7 percent, to settle at $58.14 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) fell 2.64 percent, while Crescent Point Energy Corp. (CPG.TO) shed 2.82 percent. Encana Corp. (ECA.TO) dropped 2.65 percent, and Canadian Natural Resources Limited (CNQ.TO) surrendered 2.58 percent.

Canadian Oil Sands Limited (COS.TO) dived 4.30 percent, while Pacific Rubiales Energy Corp. (PRE.TO) dropped 1.58 percent. Cenovus Energy (CVE.TO) fell 3.48 percent, while Enbridge Inc. (ENB.TO) gained 3.58 percent.

The Diversified Metals & Mining Index dropped 1.64 percent, as First Quantum Minerals Ltd. (FM.TO) shed 2.08 percent, Lundin Mining Corp. (LUN.TO) fell 1.20 percent, and Sherritt International Corp. (S.TO) surrendered 2.08 percent. Teck Resources (TCK.B.TO) dived 2.63 percent, while Capstone Mining Corp. (CS.TO) lost 1.63 percent.

The heavyweight Financial Index surrendered 1.24 percent, as Royal Bank of Canada (RY.TO) fell 1.19 percent, National Bank of Canada (NA.TO) dropped 1.26 percent, and Bank of Montreal (BMO.TO) dived 1.73 percent.

Bank of Nova Scotia (BNS.TO) surrendered 1.54 percent, while Toronto-Dominion Bank (TD.TO) fell 1.55 percent. Canadian Imperial Bank of Commerce (CM.TO) dropped 1.37 percent.

The Capped Health Care Index fell 1.30 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) lost 1.25 percent, Concordia Healthcare Corp. (CXR.TO) shed 2.17 percent, and Catamaran Corp. (CCT.TO) dropped 0.43 percent.

The Capped Industrials Index shed 1.65 percent, as Bombardier Inc. (BBD-A.TO) dipped 0.79 percent, Finning International Inc. (FTT.TO) edged down 0.04 percent. Canadian Pacific Railway Limited (CP.TO) shed 2.60 percent, while Canadian National Railway (CNR.TO) fell 2.16 percent. CAE Inc. (CAE.TO) fell 0.79 percent, while Air Canada (AC.TO) dropped 1.06 percent.

Ballard Power Systems Inc. (BLD.TO) surged 11.07 percent, after the company announced the signing of definitive license and supply agreements to support the planned deployment of an initial 33 fuel cell-powered buses in two Chinese cities. The deal has an estimated value of $10 million.

The Information Technology Index dropped 1.46 percent, after Sierra Wireless, Inc. (SW.TO) fell 4.94 percent and Descartes Systems Group Inc. (DSG.TO) added 0.33 percent. BlackBerry Inc. (BB.TO) slipped 2.80 percent, while Constellation Software Inc. (CSU.TO) gained 0.52 percent.

The Capped Telecommunication Index fell 0.84 percent, as Rogers Communications Inc. (RCI.B.TO) dropped 0.19 percent, TELUS Corp. (T.TO) dropped 1.66 percent, and BCE Inc. (BCE.TO) surrendered 0.80 percent. Sandvine Corp. (SVC.TO) plunged 9.09 percent.

Bonterra Energy Corp. (BNE.TO) dropped 2.43 percent, after announcing its intention to complete a non-brokered private placement of up to 1,200,000 common shares of its common shares, at a price of $32.00 per Common Share, for aggregate gross proceeds of up to $38.4 million.

Cogeco Cable Inc. (CCA.TO) advanced 0.98 percent, after revealing that its Atlantic Broadband subsidiary has agreed to purchase substantially all of the assets of MetroCast Connecticut for US$200 million.

Velan Inc. (VLN.TO) dropped 1.05 percent, after announcing the end to the lockout declared on May 25 of its unionized employees in Montreal.

On the economic front, data from Statistics Canada showed that Canada's building permits increased C$7.8 billion in April, up from 11.6 percent in the previous month. The figures also contradicted expectations for a decline of 5.0 percent.

Canada's housing starts rose to 201,705 units in May, compared to an upwardly revised increase of 183,329 units in April, according to report from Canada Mortgage and Housing Corp. Economists had forecast an increase of 185,000 units.

In other economic news, Chinese exports fell in May albeit less than expected, while imports declined sharply lifting the trade surplus notably to an above-expected level. Exports dropped 2.5 percent in May from a year ago, data from the General Administration of Customs showed Monday. Shipments were forecast to decline by 4.4 percent after contracting 6.4 percent in April.

At the same time, imports plunged 17.6 percent, bigger than a 10 percent fall forecast by economists. Imports had decreased 16.2 percent in April. Consequently, the trade surplus rose to $59.49 billion from $34.1 billion in April. It was expected to rise to $44.8 billion.

Eurozone investor confidence declined to a four-month low in June, survey data from the think tank Sentix showed Monday. The investor confidence index fell to 17.1 in June from 19.6 in May. This was the lowest reading since February, when the score was 12.4. The reading was above the expected score of 18.9.

Germany's exports increased unexpectedly in April, while industrial production rebounded at a faster-than-expected pace suggesting that the economy has not lost its steam. Exports rose a seasonally and calender-adjusted 1.9 percent month-on-month in April, faster than previous month's 1.3 percent increase, provisional data from Destatis showed Monday.

This was the third consecutive rise in exports and came in contrast to a 0.4 percent drop forecast by economists. Meanwhile, imports fell 1.3 percent in April from the prior month, in contrast to economists' expectations for a 0.5 percent rise. It was the first decrease in three months. In March, imports grew 2.4 percent.

German industrial production expanded 0.9 percent month-on-month in April, reversing a revised 0.4 percent fall in March, another report showed today. It was larger than the expected 0.5 percent increase and also the biggest growth for the year.

Elsewhere in Europe, the United Kingdom's growth outlook was downgraded, due largely to some weaker-than-expected first quarter gross domestic product growth, the Confederation of British Industry said Monday. The business group lowered the growth outlook for this year to 2.4 percent from 2.7 percent predicted in February. For 2016, the growth forecast was lowered to 2.5 percent from the previous estimate of 2.6 percent. Growth in 2014 was 2.8 percent.