TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Thursday, tracking largely declining global stocks amid concerns over growth in China, notwithstanding some positive economic data from the U.S. with retail sales improving and initial claims for unemployment benefits dropping. Nonetheless, China growth worries continued to weigh on markets. The drop was led by mining and financial stocks, even as gold and material indices continued to strengthen.

In economic news, retail sales in the U.S. rose slightly more than expected in February, while initial claims for U.S. unemployment benefits unexpectedly dropped to a three-month low last week.

Meanwhile, China's industrial production and retail sales grew less than expected in the first two months of 2014, data showed Thursday. Industrial production increased 8.6 percent in January to February period from last year, lower than a forecast for a 9.5 percent growth.

The uncertainty over the upcoming referendum in the Crimea region of Ukraine for a vote to break away and join Russia also weighed on investor sentiments.

Markets in Asia closed mixed, with modest gains as buying interest was on the wane amid worries about a slowdown in China. Most major European markets ended in negative territory, along with U.S. markets.

The S&P/TSX Composite Index closed Thursday at 14,245.14, down 73.86 points or 0.52 percent. The index scaled an intraday high of 14,328.66 and a low of 14,215.26.

The Global Gold Index gained 2.24 percent, with gold futures for April delivery, the most actively traded contract, edging up $1.90 to close at $1,372.40 an ounce Thursday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) jumped 4.71 percent, while Barrick Gold Corp. (ABX.TO) gained 1.59 percent. Detour Gold Corp. (DGC.TO) surged 11.72 percent, while B2Gold Corp. (BTO.TO) soared 6.61 percent. Goldcorp Inc. (G.TO) added 2.26 percent, while Osisko Mining Corp. (OSK.TO) gained 2.20 percent.

The Capped Materials Index added 0.77 percent, even as Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 0.92 percent.

Crude oil ended higher amid apprehensions over the upcoming referendum in the Crimea region of Ukraine on Sunday for a vote to break away and join Russia. Oil found support from some upbeat economic data from the U.S. with retail sales and initial claims for unemployment benefits turning positive.

The Energy Index shed 0.21 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, adding $0.21 or 0.2 percent to close at $98.20 a barrel Thursday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 1.23 percent, while Enbridge Inc. (ENB.TO) slipped 1.09 percent. Crescent Point Energy Corp. (CPG.TO) moved up 0.70 percent, while Encana Corp. (ECA.TO, ECA) added 0.36 percent. Canadian Natural Resources Ltd. (CNQ.TO) surrendered 1.52 percent.

The heavyweight Financial Index dropped 0.84 percent with the Toronto-Dominion Bank (TD.TO) dropping 0.54 percent, Bank of Nova Scotia (BNS.TO) shedding 0.78 percent, and Royal Bank of Canada (RY.TO) down 0.73 percent.

The Diversified Metals & Mining Index shed 1.22 percent, with Teck Resources Limited (TCK.B.TO) down 2.37 percent, Lundin Mining Corp. (LUN.TO) down 1.01 percent, and First Quantum Minerals (FM.TO) down 2.03 percent.

The Information Technology Index dropped 1.77 percent, with BlackBerry Limited (BB.TO) slipping 2.73 percent.

The Capped Industrials Index slipped 1.17 percent, although Bombardier Inc. (BBD.B.TO) gathered 2.38 percent.

In corporate news, shares of Empire Co. (EMP.A.TO) dropped 2.03 percent after reporting sharply lower-than-expected adjusted earning of C$0.84 a share.

Quebecor Inc. (QBR.B) slipped 0.60 percent, despite adjusted earnings rising to $68 million, or 55 cents per share, for the fourth quarter, from $52.3 million, or 42 cents per share.

Transat A.T (TRZ.B) plummeted 17.35 percent after posting a net loss of $25.6 million for the first quarter of 2014, as compared to $15.1 million last year.

Premium Brands Holdings Corp. (PBH.TO) plunged 8.15 percent, despite its fourth-quarter adjusted earnings rising to $15.35 million from $14.78 million a year earlier.

Cascades Inc. (CAS.TO) dropped 0.43 percent after reporting a fourth-quarter profit of C$6 million or C$0.05 per share, compared to a loss of C$32 million or C$0.33 per share, prior year.

Bankers Petroleum (BNK.TO) gained 2.70 percent after reporting a 45 percent rise in net operating income at $317 million for the year, from $218 million in the previous year.

Black Diamond Group Limited (BDI.TO) jumped 6.81 percent after reporting a revenue of $106.9 million for the three months to December 2013, up 56 percent from the prior corresponding quarter.

Cameco Corp. (CCO.TO) shares gained 2.68 percent after announcing the start of iron ore production at its Cigar Lake operation in northern Saskatchewan.

In economic news, the new housing price index rose 0.3 percent in January, following a 0.1 percent gain in December, Statistics Canada said Thursday.

In economic news from the U.S., retail sales rose slightly more than expected in February, a report from the Commerce Department showed Thursday. Retail sales rose 0.3 percent in February following a revised 0.6 percent drop in January. Economists expected sales to edge up by 0.2 percent compared to the 0.4 percent decrease originally reported for the previous month.

U.S. import prices rose much more than expected in February with prices for fuel imports showing a significant increase, a Labor Department report showed Thursday. Import prices climbed by 0.9 percent in February following an upwardly revised 0.4 percent increase in January. Economists expected import prices to rise by 0.5 percent compared to the 0.1 percent uptick originally reported for the previous month.

First-time claims for U.S. unemployment benefits unexpectedly dropped to a three-month low in the week ended March 8, a report from the Labor Department revealed Thursday. Initial jobless claims edged down to 315,000, a decrease of 9,000 from the previous week's revised figure of 324,000. Economists expected jobless claims to creep up to 330,000 from the 323,000 originally reported for the previous week.

A Commerce Department report on Thursday showed a moderate increase in U.S. business inventories in January, with a notable drop in business sales. Business inventories rose 0.4 percent in January following a 0.5 percent increase in December. This was in line with economists' estimates. Meanwhile, the U.S. Commerce Department said business sales dropped by 0.9 percent in January after edging down by 0.1 percent in December.

Meanwhile, the U.S. Treasury Department on Thursday said the deficit in federal budget narrowed in February by about 5 percent from last year, attributed mainly to higher receipts with a modest rise in spending. The February deficit was recorded at $194 billion, as compared to the $204 billion in the similar period last year.

From Europe, the Bundesbank in its annual statement on Thursday said the pace of growth in the Germany economy is likely to increase again in 2014 and 2015. The low level of interest rates, low unemployment rate, and a distinct increase in earnings, are fueling housing construction. However, foreign trade has not provided any positive impetus of late. Even so, the current account surplus remains high, the central bank noted.