TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a fourth straight session Monday, amid continued global economic growth concerns after some soft data from the U.S., China and the eurozone, driven by energy, mining, and industrial stocks, even as oil and bullion prices rebounded.

Concerns over the global economy continued to worry investors after reports showed Chinese manufacturing activity to have slowed down in November with eurozone manufacturing also faltering, hurt by contractions in Germany, France and Italy.

Activity in the U.S. manufacturing sector grew at a slower rate in November, with the index of activity in the sector dropping less than anticipated - but still at a 10-month low.

Besides oil and mining sectors, financial, healthcare and tech stocks are also contributed to sharp fall of the main index.

With Moody's Investors Service slashing Japan's credit rating by one notch to A1 from Aa3 with a stable outlook, uncertainties over the health of the global economy appear complete.

The rating agency cited "heightened uncertainty over whether the government can attain its medium-term deficit reduction goal" in Japan, and uncertainty about the timing and effectiveness of measures to boost economic growth as key drivers for the downgrade.

The benchmark S&P/TSX Composite Index closed Monday at 14,625.32, down 119.38 points or 0.81 percent. The index scaled a intraday high of 14,771.78 and a low of 14,558.20.

On Tuesday, the index ended lower as sharply declining commodity prices severely hurt energy and mining stocks.

Crude oil surged to end sharply higher, rebounding from a 5-year low at its previous close after the OPEC decided not cut production, with the dollar trending lower and investors anticipating an imminent cut in U.S. shale oil production.

The Energy Index shed 1.37 percent, although U.S. crude oil futures for January delivery soared $2.85 or 4.3 percent to close at $69.00 a barrel on the Nymex Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.02 percent, Talisman Energy Inc. (TLM.TO) plunged 5.69 percent, Canadian Oil Sands Limited (COS.TO) dived 5.09 percent, Encana Corp. (ECA:TSX) shed 1.11 percent, and Crescent Point Energy Corp. (CPG.TO) fell 3.67 percent.

Canadian Natural Resources Limited (CNQ.TO) gained 1.19 percent, while Enbridge, Inc. (ENB.TO) dropped 0.99 percent.

Gold futures soared to end higher after Swiss voters rejected a proposal to increase gold reserves held by its central bank and on some soft manufacturing activity out of the U.S. and China. Investors also weighed a move by Moody's to cut Japan's credit rating, with global equity markets also declining.

The Global Gold Index surged 7.00 percent, with gold for February delivery surging $42.60 or 3.6 percent to settle at $1,218.10 an ounce on the New York Mercantile Exchange Monday.

In the gold space, Kinross Gold Corp. (K.TO) surged 9.15 percent, Goldcorp Inc. (G.TO) jumped 7.41 percent, Barrick Gold Corp. (ABX.TO) added 3.91 percent, and Yamana Gold Inc. (YRI.TO) soared 11.86 percent.

Detour Gold Corp. (DGC.TO) jumped 10.73 percent, while Eldorado Gold Corp. (ELD.TO) surged 9.54 percent.

The Capped Materials Index jumped 2.40 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 1.37 percent.

The heavyweight Financial Index shed 0.80 percent, as Royal Bank of Canada (RY.TO) dropped 0.46 percent, Toronto-Dominion Bank (TD.TO) shed 0.89 percent, Bank of Nova Scotia (BNS.TO) dived 1.76 percent, Canadian Imperial Bank of Commerce (CM.TO) slipped 0.27 percent, Bank of Montreal (BMO.TO) down 0.68 percent, and National Bank of Canada (NA.TO) down 1.52 percent.

The Healthcare Index dropped 0.86 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) fell 0.70 percent, Catamaran Corp. (CCT.TO) inched up 0.05 percent and Extendicare Inc. (EXE.TO) surrendered 2.30 percent.

Northstar Healthcare Inc. (NHC.TO) surged 9.18 percent after announcing the acquisition of Athas Health LLC for a total consideration of approximately $34 million. The acquisition is expected to be accretive to earnings and accelerate the growth plans of Northstar by at least 2 years.

The Diversified Metals & Mining Index dived 2.67 percent, as First Quantum Minerals Ltd. (FM.TO) dropped 1.88 percent, Teck Resources Limited (TCK.B.TO) dropped 2.49 percent, and Lundin Mining Corp. (LUN.TO) dropped 2.20 percent.

The Capped Industrials Index plunged 3.04 percent, with Canadian National Railway (CNR.TO) diving 5.06 percent and SNC-Lavalin Group Inc. (SNC.TO) surrendering 5.09 percent. Bombardier Inc. (BBD.B.TO) gained 0.69 percent, while Air Canada (AC.TO) added 2.15 percent.

The Information Technology Index dropped 0.92 percent with BlackBerry Ltd. (BB.TO) surrendering 1.86 percent.

The Consumer Staples Index added 0.98 percent, with Metro Inc. (MRU.TO) up 1.67 percent and Saputo Inc. (SAP.TO) gaining 3.53 percent.

Cott Corp. (BCB.TO) declined 3.46 percent, after its subsidiary, Cott Beverages Inc., indicated it will offer $615 million aggregate principal amount of senior notes due 2019. The notes would be fully and unconditionally guaranteed by Cott Corp. and certain of its units.

In economic news from the U.S., a report from the Institute for Supply Management showed the index of manufacturing activity fell much less than anticipated in November, edging down to 58.7 from 59.0 in October. Economists expected the reading to drop to 57.8 in November.

From the eurozone, results of a survey by Markit showed eurozone manufacturing to have barely grown in November, hurt mostly by contractions in Germany, France and Italy. The final Eurozone Manufacturing Purchasing Managers' Index for November dropped to 50.1 from 50.6 in October. This was weaker than the flash estimate of 50.4.

Meanwhile, Germany's manufacturing activity declined in November, with production growth at its weakest pace in more than a year with new orders declining at the fastest pace in nearly two years. The Markit/BME German Manufacturing Purchasing Managers' Index declined to a 17-month low of 49.5 from October's 51.4.

From Asia, China's manufacturing purchasing managers' index slipped to an eight-month low of 50.3 in November, below expectations for a reading of 50.5 and down from 50.8 in October.

The China HSBC final manufacturing PMI hit a six-month low of 50.0 in November, unchanged from a preliminary estimate and down from 50.4 the previous month.