TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end firmly in the red on Thursday, tracking declining global equity markets, due largely to the uncertainty over the future U.S. monetary policy.

The majority of Canadian sectors ended in the red, led by the gold sector with financial, raw material, information technology, and industrial sectors also among the weakest performers.

The Federal Reserve offered no clarity as when it intends to raise interest rates after the conclusion of its policy meeting yesterday afternoon. The Fed removed any calendar-based references from its monetary policy statement, leaving traders with little or no cues as to whether tightening will begin this summer, or anytime this year for that matter.

Most markets In Europe ended lower as some mixed economic reports and earnings dampened investor sentiment, with German retail sales unexpectedly declining for a second straight month in March.

Markets in the United States were also under pressure and ended in negative territory, after some mixed economic data.

Weekly jobless claims dropped more than expected, but personal income and spending fell short of expectations. In an upbeat sign for the labor market, a Labor Department report showed Thursday. However, first-time claims for U.S. unemployment benefits pulled back to their lowest level in fifteen years in the week ended April 25.

The benchmark S&P/TSX Composite Index closed Thursday at 15,223.14, down 124.20 points or 0.81 percent. The index scaled an intraday high of 15,324.20 and a low of 15,192.46.

On Thursday, the index closed at 15,347.34, up 1.27 points or 0.01 percent, driven by strength in energy and gold stocks, even as the U.S. Federal Reserve voted to keep its benchmark interest rate at zero after government data confirmed the U.S. economy stumbled badly in the first quarter.

Gold futures ended sharply lower after the U.S Federal Reserve offered no clarity on when it intends to raise interest rates. The precious metal was also hit by some upbeat data from the U.S. with first-time claims for unemployment benefits pulling back to its lowest level in fifteen years for the week ended April 25.

The Gold Index dropped 2.17 percent, with gold for June delivery plummeting $27.60 or 2.3 percent to settle at $1,182.40 an ounce on the New York Mercantile Exchange Thursday.

The world's biggest gold producer by market cap Goldcorp Inc. (G.TO) plunged 6.20 percent after its first quarter adjusted earnings sunk to $0.01 per share from $0.26 in the prior year quarter. Analysts expected earnings of $0.10 per share for the quarter. The decline in profit was due in large part to a higher tax rate and lower margin on gold sales.

Among gold stocks, Barrick Gold Corp. (ABX.TO) fell 3.33 percent, Yamana Gold Inc. (YRI.TO) dropped 1.96 percent, Agnico Eagle Mines Limited (AEM.TO) fell 4.67 percent, and IAMGOLD Corp. (IMG.TO) moved up 4.93 percent.

Eldorado Gold Corp. (ELD.TO) dropped 1.96 percent. Kinross Gold Corp (K.TO) shed 0.34 percent, while B2Gold (BTO.TO) shed 2.58 percent.

Crude oil surged to end higher on some upbeat jobless claims for unemployment benefits data from the U.S. with the dollar continuing to slide. Yesterday, official data from the Energy Information Administration showed a decline in crude supplies at its storage hub in Cushing, Oklahoma, fueling expectations the supply glut scenario would continue to ease.

The Energy Index dropped 0.19 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, jumping $1.05 or 1.8 percent, to settle at $59.63 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) gained 3.55 percent, while Crescent Point Energy Corp. (CPG.TO) fell 1.13 percent.

Pacific Rubiales Energy Corp. (PRE.TO) surged 9.68 percent, Canadian Natural Resources Limited (CNQ.TO) dipped 0.96 percent, and Cenovus Energy Inc. (CVE.TO) added 0.40 percent.

Suncor Energy Inc. (SU.TO) shed 1.48 percent, after reporting a first quarter loss of C$0.24 per share, compared to a profit of C$1.01 per share in the previous year.

The Capped Materials Index dropped 1.40 percent, mostly on rising gold stocks, with Agrium Inc. (AGU.TO) surrendering 1.15 percent. Franco-Nevada Corp. (FNV.TO) gained 1.46 percent, while Silver Wheaton (SLW.TO) dropped 3.84 percent.

Potash Corp. of Saskatchewan Inc. (POT.TO)shed 1.06 percent, after reporting a first-quarter profit of $0.44 per share, short of the consensus estimate of $0.50 per share. The company also slashed its full year 2015 earnings forecast.

The Diversified Metals & Mining Index jumped 2.34 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.98 percent and Teck Resources Limited (TCK.B.TO) gained 2.18 percent.

Sherritt International Corp. (S.TO) added 4.17 percent, Capstone Mining (CS.TO) added 3.07 percent, Denison Mines Corp. (DML.TO) dropped 1.83 percent, and HudBay Minerals Inc. (HBM.TO) gained 2.49 percent.

Lundin Mining (LUN.TO) surged 10.50 percent, after reporting a first quarter profit of $10.50 per share.

The heavyweight Financial Index fell 0.82 percent, with all major banks settling lower. Bank of Nova Scotia (BNS.TO) fell 1.11 percent, while Toronto-Dominion Bank (TD.TO) shed 0.71 percent. Royal Bank of Canada (RY.TO) fell 0.95 percent, while Canadian Imperial Bank of Commerce (CM.TO) dropped 0.72 percent.

National Bank of Canada (NA.TO) shed 0.39 percent.

Bank of Montreal (BMO.TO) dipped 0.30 percent, after CEO Mark Furlong announced his retirement, effective June 1, 2015.

The Capped Health Care Index slipped 0.15 percent as Concordia Healthcare Corp. (CXR.TO) fell 1.23 percent, Catamaran Corp. (CCT.TO) gained 0.18 percent, and Extendicare Inc. (EXE.TO) gathered 1.03 percent. Valeant Pharmaceuticals International Inc. (VRX.TO) gained 2.08 percent.

The Capped Industrials Index dipped 0.71 percent, as Canadian Pacific Railway Limited (CP.TO) declined 1.24 percent, and Canadian National Railway Company (CNR.TO) fell 1.38 percent.

Air Canada surrendered 2.46 percent, while Finning International Inc. (FTT.TO) added 1.94 percent. Bombardier Inc. (BBD.B.TO) dropped 1.21 percent.

The Information Technology Index fell 1.97 percent, as BlackBerry Limited (BB.TO) fell 1.84 percent, Descartes Systems Group Inc. (DSG.TO) shed 0.60 percent, and Sierra Wireless, Inc. (SW.TO) surrendered 3.70 percent.

Constellation Software Inc. (CSU.TO) dived 4.06 percent, after the company reported a first-quarter profit of $1.55 per share, compared to $0.42 per share a year ago.

The Capped Telecommunication Index declined 0.92 percent, as Rogers Communications Inc. (RCI.B.TO) fell 0.65 percent and TELUS Corp. (T.TO) dropped 1.56 percent. Manitoba Telecom Services Inc. (MBT.TO) inched up 0.08 percent.

BCE Inc. (BCE.TO) dropped 1.81 percent after reporting a first quarter profit of $0.84 per share, as compared to . $0.81 per share last year.

On the economic front, in an upbeat sign for the labor market, a Labor Department report on Thursday showed first-time claims for U.S. unemployment benefits to have pulled back to its lowest level in fifteen years for the week ended April 25. Initial jobless claims dropped to 262,000, a decrease of 34,000 from the previous week's revised level of 296,000. Economists expected jobless claims to edge down to 288,000 from the 295,000 originally reported for the previous week.

A Commerce Department report on Thursday showed a continued increase in U.S. personal spending in March, while personal income was unexpectedly flat.

Personal spending rose 0.4 percent in March following an upwardly revised 0.2 percent increase in February. Economists expected spending to climb by 0.5 percent compared to the 0.1 percent uptick originally reported for the previous month.

Personal income inched up less than a tenth of a percent in March after increasing by 0.4 percent in February. Income had been expected to rise by 0.2 percent.

Pointing to a positive start to the second quarter, a MNI Indicators report showed a substantial rebound in Chicago-area business activity in April. MNI's Chicago business barometer jumped to 52.3 in April from 46.3 in March, with a reading above 50 indicating an expansion. Economists expected the barometer to climb to a reading of 50.0.

Eurozone unemployment rate remained unchanged for a second straight month in March, at its lowest level in nearly three years, preliminary data from Eurostat showed Thursday. The seasonally adjusted jobless rate was 11.3 percent, unchanged from both February and January. Economists had forecast a decline in the rate to 11.2 percent.

Eurozone consumer prices remained flat in April as expected by economists after falling for four consecutive months, flash data from Eurostat showed Thursday. Consumer prices dropped 0.1 percent in March and 0.3 percent in February.

Germany's retail sales unexpectedly declined for a second straight month in March, preliminary figures from the statistical office Destatis showed Thursday. Retail sales fell a calendar-and-seasonally adjusted 2.3 percent from February, when they dropped 0.1 percent. Economists had expected a 0.5 percent gain for March. The latest decrease was the biggest in more than a year.

German unemployment declined less than expected in April, the Federal Labor Agency reported Thursday. The number of people out of work declined by seasonally adjusted 8,000 to 2.79 million in April. It was forecast to fall by 15,000.

France's consumer spending declined for the first time in five months in March and at a faster than expected pace, mainly due to a slump in energy consumption, preliminary data from the statistical office INSEE showed Thursday. Household consumption of goods dropped 0.6 percent from February, when they grew 0.2 percent, which was revised up from 0.1 percent. Economists were looking for a 0.5 percent fall.

France's producer prices continued to decline in March, figures from the statistical office INSEE showed Thursday. Producer prices for the French market fell 2.2 percent year-over-year in March, but slower than previous month's 2.6 percent decline.