TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Monday, tracking declining global equity markets, dragged down mainly by resource stocks on weak commodity prices over concerns of a slowdown in China, and some weak economic data from the U.S. and Europe.

In some disappointing economic news from the U.S., existing home sales unexpectedly dropped, while the Chicago Fed's national activity index also declined. Meanwhile, eurozone consumer confidence dropped for a fourth month in September to its lowest since February, a report from the European Commission showed Monday.

Worries about the Chinese economy have risen after the Chinese Finance Minister Lou Jiwei said the government may not make major policy changes despite downward pressure on economic growth.

Investors are looking ahead to a report on Chinese manufacturing activity, due tomorrow. Data on Canadian retail sales and durable goods orders are also on tap later.

Besides mining and energy stocks, shares from industrial and healthcare section also ended notably lower. Consumer staples and Telecommunications ended higher, while financial stocks closed lower.

The S&P/TSX Composite Index closed Friday at 15,129.00, down 136.35 points or 0.89 percent. The index scaled a intraday high of 15,266.11 and a low of 15,117.50.

On Friday, the index ended down down 200.19 points or 1.29 percent at 15,265.35. The index shed 1.7 percent last week.

Crude oil settled lower for a fourth straight session on continued demand growth concerns amid fears of a supply glut, further escalated by some disappointing economic data from the U.S.

The Energy Index dived 1.97 percent, with U.S. crude oil futures for October delivery dropping $0.89 or 1.0 percent to close at $91.52 a barrel Monday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dropped 1.18 percent, Suncor Energy Inc. (SU.TO) fell 1.57 percent, Encana Corp. (ECA.TO) fell 2.54 percent, Canadian Natural Resources Limited (CNQ.TO) shed 1.16 percent, and Enbridge Inc. (ENB.TO) declined 1.54 percent.

The Financial Index shed 0.27 percent, with Toronto-Dominion Bank (TD.TO) up 0.41 percent, Canadian Imperial Bank of Commerce (CM.TO) down 0.19 percent, Royal Bank of Canada (RY.TO) gathered 0.17 percent, Bank of Nova Scotia (BNS.TO) dropped 0.17 percent, and Bank of Montreal (BMO.TO) dived 0.23 percent.

Manulife Financial Corp. (MFC.TO) shed 0.81 percent, while Sun Life Financial Inc. (SLF.TO) edged up 0.02 percent.

Gold ended higher despite the dollar strengthening against some select currencies amid continued speculation that U.S. interest rates will rise at a faster pace once monetary tightening begins.

Global Gold Index dropped 1.85 percent, with gold for December delivery shedding $1.30 percent or 0.1 percent to settle at $1,217.90 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.82 percent, B2Gold Corp. (BTO.TO) fell 5.46 percent, Yamana Gold Inc. (YRI.TO) declined 2.56 percent, Eldorado Gold Corp. (ELD.TO) dropped 0.92 percent, and Barrick Gold Corp. (ABX.TO) surrendered 0.58 percent.

The Capped Materials Index fell 1.55 percent mostly on sharply declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.75 percent. Franco-Nevada Corporation (FNV.TO) declined 1.78 percent, Silver Wheaton Corp. (SLW.TO) slid 2.25 percent, and Agnico Eagle Mines Limited (AEM.TO) fell 3.04 percent.

The Diversified Metals & Mining Index fell 1.89 percent, with First Quantum Minerals Ltd. (FM.TO) down 1.67 percent, Lundin Mining Corp. (LUN.TO) down 0.72 percent, and Teck Resources Limited (TCK.B.TO) shedding 1.05 percent.

The Capped Industrial Index dropped 1.16 percent, with Bombardier Inc. (BBD.B.TO) down 1.14 percent and Air Canada (AC.B.TO) down 2.03 percent.

The Information Technology Index fell 0.38 percent, with BlackBerry Limited (BB.TO) up 1.26 percent.

The Consumer Staples Index gained 0.15 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) gathering 2.98 percent and Metro Inc. (MRU.TO) adding 0.55 percent.

The Healthcare Index surrendered 1.92 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 1.67 percent, Extendicare Inc. (EXE.TO) down 1.66 percent and Catamaran Corp. (CCT.TO) slipping 1.77 percent.

The Telecom Index added 0.35 percent with Rogers Communications Inc. (RCI.B.TO) inching up 0.09 percent.

BCE Inc. (BCE.TO) revealed the successful completion of the initial phase of its offers to purchase all outstanding Bell Aliant Inc. (BA.TO) common shares and exchange all outstanding Bell Aliant preferred shares. BCE added 0.59 percent, while shares of Bell Alliant Inc. gathered 1.33 percent.

The Consumer Discretionary Index edged down 0.08 percent with Magna International Inc. (MG.TO) gaining 0.15 percent and Tim Hortons Inc. (THI.TO) adding 0.72 percent.

Endo International Plc (ENL.TO) dipped 1.24 percent after Auxilium Pharmaceuticals Inc. (AUXL) rejected its unsolicited $2.2 billion proposal, noting that the offer significantly undervalues the company. Meanwhile, Auxilium has favored the merger deal with Canadian eye drug maker QLT Inc. (QLT.TO). QLT Inc. dropped 0.88 percent.

Primero Mining Corp. (P.TO) shed 2.88 percent after announcing the appointment of Wendy Kaufman as its Chief Financial Officer. Kaufman, a Chartered Professional Accountant, is credited with over 20 years of financial management experience in the mining sector.

In economic news from the U.S., data from Chicago Federal Reserve showed economic activity weakened in August, with the Chicago Fed's national activity index declining to -0.21 in the month, down from a positive reading of 0.26 in the previous month.

Meanwhile, according to a report from the National Association of Realtors, U.S. existing home sales unexpectedly dropped 1.8 percent to a seasonally adjusted 5.05 million in August, from a downwardly revised 5.14 million in July. Economists expected existing home sales to climb to an annual rate of 5.18 million from the 5.15 million originally reported for the previous month.

Eurozone consumer confidence dropped for a fourth month in September to its lowest since February, preliminary data from the European Commission showed Monday. The flash consumer confidence indicator for the euro area dropped to -11.4 from -10 in August. The reading was below economists' consensus of -10.5.

Meanwhile, Bundesbank said German industrial production in July with output growing 1.9 percent, the most since March 2012. The growth was reportedly was largely influenced by the timing of school holidays., which were concentrated in August this year, the central bank said in its monthly report on Monday.