TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end lower on Monday, tracking declining global equity markets, with little economic indicators for direction which kept some investors on the sidelines.

Meanwhile, China slashed interest rates for the third time in six months over the weekend in a bid to boost lending to businesses, providing stimulus to a slowing economy. The bank had cut rates previously in March, having lowered lending rates in November for the first time in more than two years.

The one-year lending rate would be reduced by 25 basis points, or a quarter of a percentage point, to 5.1 percent, officials said. The economic superpower that was once growing at a breakneck speed has slowed down sharply in recent months.

Elsewhere in Europe, the Bank of England left its key record low interest rate and the size of the quantitative easing unchanged ahead of the publication of its latest quarterly update on inflation later this week, amid low inflation and signs of slowdown in the economy.

Markets in the United States ended in the red, with all major averages closing in negative territory. The tech-heavy Nasdaq edged down 9.98 points or 0.2 percent, while the Dow fell 85.94 points or 0.5 percent and the S&P 500 sliding 10.77 points. The weakness on Wall Street was due partly to profit taking on the heels of the rally seen in the previous session.

Markets in Europe turned in a mixed performance as concerns over Greece continued to weigh on investor sentiment, even as Athens is due to make a 750 million euro payment to the International Monetary Fund on Tuesday. Eurozone finance ministers are scheduled to meet in Brussels today to take note of the Greek government's progress in the implementation of structural reforms in exchange for bailout funds.

The benchmark S&P/TSX Composite Index closed Monday at 15,152.64, down 17.38 points or 0.11 percent. The index scaled an intraday high of 15,237.18 and a low of 15,108.85.

On Friday, the index closed up 81.20 points or 0.54 percent, at 15,170.02. The index scaled an intraday high of 15,200.22 and a low of 15,099.22.

The Diversified Metals & Mining Index declined 1.55 percent, as First Quantum Minerals Ltd. (FM.TO) shed 0.82 percent, Teck Resources Limited (TCK.B.TO) fell 3.60 percent, and Sherritt International Corp. (S.TO) dropping 4.84 percent.

Gold futures ended lower as the dollar ticked higher, with investors focused on the Greek financial crisis as Athens is due to pay back some big debt to the International Monetary Fund this week. The crucial Chinese stimulus failed to trigger any fresh buying over the weekend.

The Gold Index gained 0.38 percent, although gold for June delivery dropped $5.90 or 0.5 percent to settle at $1,183.00 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.71 percent, Barrick Gold Corp. (ABX.TO) added 0.58 percent, and Yamana Gold Inc. (YRI.TO) gathered 2.39 percent.

Eldorado Gold Corp. (ELD.TO) moved up 1.32 percent, while Agnico Eagle Mines Limited (AEM.TO) fell 2.40 percent.

The Capped Materials Index dipped 0.05 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.15 percent, while Agrium Inc. (AGU.TO) slipped 0.21 percent.

U.S. crude oil ended slightly lower, on a strong dollar as investors await this week's crude stockpiles report from the Energy Information Administration. Oil prices ticked lower despite further stimulus measures from China, slashing interest rates for the third time since late last year.

The Energy Index fell 0.95 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, dipping $0.14 or 0.2 percent, to settle at $59.25 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) moved up 0.16 percent, while Crescent Point Energy Corp. (CPG.TO) shed 3.39 percent. Cenovus Energy Inc. (CVE.TO) fell 0.66 percent, while Canadian Oil Sands Limited (COS.TO) dropped 2.69 percent.

Pacific Rubiales Energy Corp. (PRE.TO) fell 1.44 percent, while Canadian Natural Resources Limited (CNQ.TO) slipped 0.29 percent.

The heavyweight Financial Index inched up 0.05 percent, as Bank of Nova Scotia (BNS.TO) added 0.31 percent, while Toronto-Dominion Bank (TD.TO) inched up 0.05 percent. Royal Bank of Canada (RY.TO) dipped 0.08 percent, and Canadian Imperial Bank of Commerce (CM.TO) shed 0.17 percent.

National Bank of Canada (NA.TO) added 0.84 percent, while Bank of Montreal (BMO.TO) added 0.18 percent.

The Capped Health Care Index added 0.06 percent as Valeant Pharmaceuticals International Inc. (VRX.TO) gained 1.14 percent, Concordia Healthcare Corp. (CXR.TO) fell 0.16 percent, and Catamaran Corp. (CCT.TO) moved up 0.44 percent.

The Capped Industrials Index fell 0.38 percent, as Air Canada gathered 2.36 percent, Canadian Pacific Railway Limited (CP.TO) shed 0.82 percent, Finning International Inc. (FTT.TO) moved up 0.24 percent, and Canadian National Railway (CNR.TO) fell 0.56 percent.

Plane and train maker Bombardier Inc. (BBD_B.TO, BBD_A.TO) dropped 1.14 percent.

The Information Technology Index moved up 0.48 percent, as Descartes Systems Group Inc. (DSG.TO) gained 0.72 percent, and Sierra Wireless, Inc. (SW.TO) fell 1.17 percent. BlackBerry Inc. (BB.TO) jumped 6.20 percent.

The Capped Telecommunication Index moved up 0.12 percent, as Rogers Communications Inc. (RCI.B.TO) inched up 0.02 percent, TELUS Corp. (T.TO) added 0.98 percent, while BCE Inc. (BCE.TO) gathered 0.19 percent.

Nobilis Health Corp. (NHC.TO) closed at 1.20 percent, after it agreed to acquire Victory Healthcare Plano Hospital.

Cargojet (CJT.TO) jumped 5.62 percent, having reported first quarter revenues of $54.1 million, an increase of 23.8 percent from the prior year.

Cascades Inc. (CAS.TO) gained 2.07 percent after announcing that it intends to offer US$250 million aggregate principal amount of senior notes due 2023 in a private offering.

On the economic front, Germany's manufacturing turnover dropped for the second straight month in March, figures from Destatis showed Monday. Manufacturing turnover fell a seasonally and working-day-adjusted 1.0 percent month-over-month in March, faster than previous month's 0.8 percent decrease, which was revised from a 0.7 percent decline estimated earlier.

The People's Bank of China on Saturday cut both benchmark lending and deposit rates by 25 basis points to 5.1 percent and 2.25 percent, respectively. The latest reduction in interest rates is aimed at easing funding costs for businesses to promote economic development as the country continues to face relatively big downward pressure, the central bank said.

The Bank of England left its key record low interest rate and the size of the quantitative easing unchanged ahead of the publication of its latest quarterly update on inflation later this week, amid low inflation and signs of slowdown in the economy.

The Monetary Policy Committee, led by Bank of England Governor Mark Carney, decided on Monday to retain the key bank rate at 0.50 percent and the size of asset purchases at GBP 375 billion.