TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end lower on Thursday, tracking largely declining global markets after some disappointing economic data from the U.S., led by an unexpected rise in weekly claims for unemployment benefits. The main index was driven by a decline in energy stocks as oil prices climbed down from a near six percent surge yesterday.

Global markets were under pressure due to concerns over Greece and some weak U.S. economic data. Weakness in commodities and crude oil prices also had a negative impact on the Canadian market.

Markets in Europe ended largely in the red, as concerns over the situation in Greece persisted. Standard & Poor's Ratings Services cut its credit ratings on Greece deeper into junk territory, indicating that it expects the country's debt and other financial commitments to be "unsustainable" without deep economic reform.

Markets in the United States were down after some weaker than expected economic data, with weekly jobless claims showing an unexpected increase, while housing starts and building permits both came in weaker than expected.

The benchmark S&P/TSX Composite Index closed Thursday at 15,386.77, down 64.10 points or 0.41 percent. The index scaled an intraday high of 15,454.25 and a low of 15,324.96.

On Wednesday, the index closed up 61.59 points or 0.40 percent, at 15,450.87. The index scaled an intraday high of 15,524.75 and a low of 15,437.02.

Gold futures ended lower to drop back below the $1,200-mark as investors weighed a slew of economic data from the U.S. and the developments in Greece with concerns over a potential default resurfacing.

The Gold Index dropped 2.01 percent, with gold for June delivery shedding $3.30 or 0.3 percent to settle at $1,198.00 an ounce on the New York Mercantile Exchange Thursday.

Goldcorp Inc. (G.TO) dropped 1.55 percent, while Yamana Gold Inc. (YRI.TO) dropped 2.00 percent. Among other gold stocks, Kinross Gold Corp (K.TO) slipped 1.06 percent, Eldorado Gold Corp. (ELD.TO) fell 2.07 percent, and Barrick Gold Corp. (ABX.TO) shed 2.47 percent.

Crude oil prices ended higher with investors mulling over the slowdown in U.S. production, even as the dollar weakened. Rising tensions in the Middle East and the prospect of increased demand for crude also helped oil tick higher.

The Energy Index dropped 1.01 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, adding $0.32 or 0.6 percent to settle at $56.71 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) gained 0.93 percent, Suncor Energy Inc. (SU.TO) dropped 1.48 percent, and Canadian Natural Resources Limited (CNQ.TO) fell 2.76 percent.

Crescent Point Energy Corp. (CPG.TO) fell 0.49 percent, while Cenovus Energy Inc. (CVE.TO) surrendered 2.22 percent. Bonterra Energy (BNE.TO) advanced 0.41 percent, while Legacy Oil + Gas Inc. (LEG.TO) added 1.96 percent.

Encana Corp. (ECA.TO) gained 1.28 percent, while Pacific Rubiales Energy Corp. (PRE.TO) surged 17.87 percent.

The Capped Materials Index shed 1.27 percent, mainly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.42 percent and Agrium Inc. (AGU.TO) gaining 0.56 percent.

The Diversified Metals & Mining Index fell 1.42 percent, as First Quantum Minerals Ltd. (FM.TO) shed 1.11 percent and Lundin Mining Corp. (LUN.TO) added 0.99 percent.

Teck Resources (TCK.B.TO) fell 1.70 percent, while Finning International Inc. (FTT.TO) shed 0.88 percent.

The heavyweight Financial Index inched up 0.07 percent, as Bank of Nova Scotia (BNS.TO) gained 0.46 percent and Bank of Montreal (BMO.TO) inched up 0.01 percent.

National Bank of Canada (NA.TO) gained 1.66 percent, after announcing that its Board has authorized the repurchase of up to 6,000,000 of its issued and outstanding common shares.

Royal Bank of Canada (RY.TO) edged down 0.01 percent, Toronto-Dominion Bank (TD.TO) added 0.23 percent, and Canadian Imperial Bank of Commerce (CM.TO) gathered 0.35 percent.

The Capped Health Care Index added 0.37 percent, as Extendicare (EXE.TO) added 0.78 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 0.06 percent, Catamaran Corp. (CCT.TO) shed 0.66 percent, and Concordia Healthcare (CXR.TO) added 0.29 percent.

The Capped Industrials Index dropped 0.33 percent, with Bombardier Inc. (BBD.B.TO) up 1.12 percent and Canadian Pacific Railway Limited (CP.TO) shedding 1.08 percent.

Canadian National Railway Company (CNR.TO) fell 0.16 percent, with the company revealing that it will invest approximately C$500 million in infrastructure improvements to its Western Canada feeder rail lines.

The Information Technology Index shed 0.61 percent, with BlackBerry Limited (BB.TO) slipping 1.39 percent.

Among other tech stocks, Constellation Software Inc. (CSU.TO) dipped 0.97percent, Sierra Wireless, Inc. (SW.TO) gained 1.91 percent, and Descartes Systems Group Inc. (DSG.TO) added 0.30 percent.

The Capped Telecommunication Index added 0.33 percent, with BCE Inc. (BCE.TO) down 1.23 percent and Rogers Communications Inc. (RCI.B.TO) down 0.17 percent. Manitoba Telecom Services Inc. (MBT.TO), however, jumped 4.16 percent.

Corus Entertainment (CJR-B.TO) gained 2.99 percent, after securing the Canadian licensing rights to Disney Channel's content.

On the economic front, a Labor Department report on Thursday showed initial jobless claims for U.S. unemployment benefits to have unexpectedly increased in the week ended April 11. Initial jobless claims climbed to 294,000, an increase of 12,000 from the previous week's revised level of 282,000. Economists expected jobless claims to edge down to 280,000 from the 281,000 originally reported for the previous week.

A Commerce Department report showed a rebound in new U.S. residential construction in March, although housing starts still came in well below economists' estimates for the month. The report said housing starts rose 2.0 percent to an annual rate of 926,000 in March after tumbling 15.3 percent to a rate of 908,000 in February. Economists expected housing starts to jump to a rate of 1.04 million.

The Commerce Department report also said building permits, an indicator of future housing demand, fell 5.7 percent to an annual rate of 1.039 million in March after climbing 4 percent to a rate of 1.102 million in February. Economists expected building permits to show a much more modest decrease to a rate of 1.085 million.

Growth in Philadelphia-area manufacturing activity has seen a modest acceleration in April, a report from the Federal Reserve Bank of Philadelphia said Thursday. The Philly Fed's diffusion index of current activity rose to 7.5 in April from 5.0 in March, with a positive reading indicating growth in regional manufacturing activity. Economists expected the index to inch up to 6.0.

Foreign direct investment in China increased in March from a year ago, the Commerce Ministry said on Thursday. In March, foreign direct investment climbed 2.2 percent year-over-year to $12.4 billion, which was much higher than February's 0.9 percent rise.

The leading economic index in the UK, which measures future economic activity, increased for the second straight month in February, results of a survey by the Conference Board showed Wednesday. The Conference Board's leading economic index climbed 0.6 percent in February, following a 0.2 percent rise in the previous month. It was the largest monthly increase since June 2014.