TSX Ends Lower As Global Equity Markets Decline -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Tuesday, tracking declining global equity markets, after some continued sell-off in global treasury bonds weighed on markets. Investor concerns over Greece also continued to weigh on markets.

The majority of the Canadian sectors ended in the red, with only mining and gold stocks making gains as commodity prices rose.

Markets in the United States were also under pressure. On another light day for economic news, the bond market drove the direction of trade. A continued sell-off in treasuries is weighing on Wall Street, with the drop in bond prices pushing long-term yields to their highest levels of the year.

Under pressure in early trade, treasuries showed a notable turnaround over the course of the trading session. Bond prices gave back ground in the latter part of the session but managed to close modestly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.4 basis points to 2.26 percent.

European markets also ended in negative territory due to concerns over Greece and as well on weakness in European government bonds, with yields climbing as prices dropping following a sell-off.

Meanwhile, Greek finance ministry official said the order for the repayment of 750 million euros has been executed, with Athens having to dig deep into an emergency account to make the interest payment on its debt to the International Monetary Fund.

Greece appears to have made some progress in bailout talks with its European creditors in Brussels yesterday, but finance ministers said more time and effort was needed to reach an agreement over proposed reforms to keep the country afloat.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,043.15, down 109.49 points or 0.72 percent. The index scaled an intraday high of 15,127.02 and a low of 15,026.19.

On Monday, the index closed down 17.38 points or 0.11 percent, at 15,152.64. The index scaled an intraday high of 15,237.18 and a low of 15,108.85.

The Diversified Metals & Mining Index gained 0.12 percent, as First Quantum Minerals Ltd. (FM.TO) added 2.05 percent, Teck Resources Limited (TCK.B.TO) fell 0.92 percent, and Sherritt International Corp. (S.TO) dropped 1.36 percent.

Gold futures ended higher on Tuesday, as the dollar weakened with investors seeking the precious metal's safe haven after some continued sell-off in global treasury bonds weighed on markets.

The Gold Index gained 0.61 percent, although gold for June delivery gained $9.40 or 0.8 percent to settle at $1,192.40 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) added 1.11 percent, Barrick Gold Corp. (ABX.TO) fell 0.45 percent, and Yamana Gold Inc. (YRI.TO) gathered 0.85 percent.

Eldorado Gold Corp. (ELD.TO) moved up 0.82 percent, while Agnico Eagle Mines Limited (AEM.TO) gathered 2.52 percent.

The Capped Materials Index dipped 0.05 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) declining 1.51 percent and Agrium Inc. (AGU.TO) slipped 0.62 percent.

U.S. crude oil ended sharply higher, as the dollar trended lower against some major currencies while the U.S. Energy Information Administration raised its price forecast for the year. Meanwhile, investors anticipate the official weekly oil inventory report to show a decline in U.S. supplies.

The Energy Index fell 0.32 percent, although U.S. crude oil futures for June delivery, the most actively traded contract, jumped $1.50 or 2.5 percent, to settle at $60.75 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) declined 1.06 percent, while Crescent Point Energy Corp. (CPG.TO) shed 1.94 percent. Cenovus Energy Inc. (CVE.TO) fell 1.10 percent, while Canadian Oil Sands Limited (COS.TO) dropped 0.75 percent.

Pacific Rubiales Energy Corp. (PRE.TO) fell 3.09 percent, while Canadian Natural Resources Limited (CNQ.TO) dipped 0.10 percent.

The heavyweight Financial Index dropped 0.58 percent, as all major banks ended in the red. Bank of Nova Scotia (BNS.TO) shed 0.69 percent, Toronto-Dominion Bank (TD.TO) fell 0.49 percent, Royal Bank of Canada (RY.TO) dipped 0.57 percent, and Canadian Imperial Bank of Commerce (CM.TO) dropped 0.48 percent.

National Bank of Canada (NA.TO) dropped 0.24 percent, while Bank of Montreal (BMO.TO) declined 0.22 percent.

The Capped Health Care Index surrendered 0.44 percent as Valeant Pharmaceuticals International Inc. (VRX.TO) fell 1.21 percent, Concordia Healthcare Corp. (CXR.TO) surrendered 1.45 percent, and Catamaran Corp. (CCT.TO) declined 0.51 percent.

The Capped Industrials Index fell 1.48 percent, as Canadian Pacific Railway Limited (CP.TO) shed 3.06 percent, Finning International Inc. (FTT.TO) dropped 1.69 percent, and Canadian National Railway (CNR.TO) fell 2.31 percent.

Air Canada (AC.TO) jumped 3.75 percent after reporting first quarter adjusted earnings of C$0.41 per share, compared to the loss of C$0.46 per share last year.

Bombardier Inc. (BBD-A.TO) shed 1.54 percent, after signing an agreement with Pratt & Whitney to develop and implement a data management service for the CSeries aircraft.

The Information Technology Index declined 0.77 percent, as Descartes Systems Group Inc. (DSG.TO) gained 0.45 percent, and Sierra Wireless, Inc. (SW.TO) fell 1.01 percent. BlackBerry Inc. (BB.TO) dropped 3.24 percent.

The Capped Telecommunication Index fell 0.23 percent, as Rogers Communications Inc. (RCI.B.TO) shed 1.54 percent, TELUS Corp. (T.TO) dropped 1.86 percent, and BCE Inc. (BCE.TO) surrendered 1.18 percent.

Encana Corp. (ECA.TO) declined 0.89 percent after reporting a first quarter profit of $0.01 per share, while analysts expected a loss of $0.09 per share.

Avigilon Corp. (AVO.TO) dropped 2.59 percent. The company announced resignation of Danny Kam as its Executive Vice President of Engineering to pursue personal endeavors.

WSP Global Inc. (WSP.TO) rose 2.48 percent, after its first quarter revenues surged 132.6 percent to $1,024.8 million.

On the economic front, U.K. industrial production unexpectedly grew in March for a second straight month, led by a robust gain in oil and gas extraction and stronger manufacturing output, giving some respite from concerns of a slowdown in the economic growth momentum.

Industrial production rose 0.5 percent from February, when it edged up 0.1 percent, data from the Office for National Statistics revealed Tuesday. Economists had forecast stagnation for the month. The latest growth rate was the strongest since September last year, when production grew 0.6 percent.

The leading index for Japan, which measures the future economic activity, increased as expected in March, preliminary figures from the Cabinet Office showed Tuesday. The index rose to 105.5 in March from 104.7 in the previous month, in line with economists' expectations. The reading was also at its highest since September last year, when it was 105.8.

The Organization for Economic Co-operation and Development's leading index signaled a stable growth momentum in the region and a positive change in growth momentum in the euro area.

The OECD's composite leading indicator, designed to anticipate economic turning points in economic activity, came in at 100.1 in April, down slightly from 100.2 in February. Stable growth momentum was also observed in Japan, Germany, India and the United Kingdom.

In the euro area, signs of positive growth momentum in seen especially in France and Italy, the OECD said. The index suggested easing growth momentum for the United States and China, while in Russia the index continues to point to a loss in growth momentum.