TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Friday, tracking declining global equity markets due largely to some soft economic data from China over the weekend which had investors in a gloomy mood. Investors are also playing it cautious ahead of the Federal Reserve announcement on Thursday, with uncertainty if the Fed would hike rates or not.

Stocks were under pressure following a decline in commodity prices, with all the major sectors ending in the red. The largest losses were among the mining, gold and energy sectors.

The majority of the European markets ended in the red, while markets in the United States also under pressure with the Fed scheduled to announce its policy decision Thursday afternoon. However, most analysts remain divided if the central bank will raise interest rates.

The benchmark S&P/TSX Composite Index closed Monday at 13, 353.34, down 108.13 points or 0.80 percent. The index scaled an intraday high of 13,459.99 and a low of 13,353.34.

On Friday, the index closed down 108.50 points or 0.80 percent, at 13,461.39. The index scaled an intraday high of 13,523.46 and a low of 13,404.63.

The Diversified Metals & Mining Index plunged 3.75 percent as First Quantum Minerals (FM.TO) plunged 8.13 percent and Lundin Mining Corporation (LUN.TO) plummeted 5.42 percent.

Teck Resources Limited (TCK-B.TO) fell 2.99 percent.

The heavyweight Financial Index dipped 0.07 percent, as National Bank of Canada (NA.TO) fell 0.25 percent and Royal Bank of Canada (RY.TO) inched up 0.28 percent.

Toronto-Dominion Bank (TD.TO) dropped 0.27 percent after the management stated Friday that they are looking into acquisitions in the U.S.

Bank of Nova Scotia (BNS.TO) added 0.14 percent, and Canadian Imperial Bank of Commerce (CM.TO) shed 0.20 percent. Bank of Montreal (BMO.TO) moved up 0.45 percent.

Crude oil ended lower on some disappointing economic data from China and after the Organization of the Petroleum Exporting Countries, or OPEC, cut its supply forecast for U.S. producers.

The Energy Index fell 1.43 percent, with U.S. crude oil futures for October delivery, the most actively traded contract, dropping $0.63 or 1.4 percent, to settle at $44.00 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) fell 1.63 percent, Canadian Natural Resources Limited (CNQ.TO) shed 1.58 percent, and Cenovus Energy (CVE.TO) fell 1.81 percent.

Gold futures ended higher as investors awaited the outcome of the Federal Reserve's policy meet that concludes on Thursday.

The Gold Index fell 1.23 percent, although gold for December delivery gained $4.40 or 0.4 percent, to settle at $1,107.70 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) fell 3.83 percent, Barrick Gold (ABX.TO) shed 2.02 percent, Eldorado Gold (ELD.TO) dropped 3.31 percent, and Kinross Gold Corp. (K.TO) shed 1.99 percent.

The Capped Materials Index shed 1.67 percent, with Agrium Inc. (AGU.TO) down 1.07 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.33 percent.

The Capped Health Care Index slipped 1.10 percent, as Valeant Pharmaceuticals International (VRX.TO) fell 1.20 percent, Extendicare Inc. (EXE.TO) gained 0.38 percent, and Concordia Healthcare Corp. (CXR.TO) dropped 0.78 percent.

The Capped Information Technology Index dipped 0.14 percent, even as BlackBerry Limited (BB.TO) gained 0.20 percent.

The Capped Telecommunication Index dropped 0.67 percent, as Rogers Communication (RCI-B.TO) fell 0.62 percent.

The Capped Industrials Index shed 1.12 percent, as Bombardier (BBD-B.TO) plummeted 10.75 percent.

On the economic front, China's industrial production increased at a slower-than-expected pace in August, while retail sales growth exceeded expectations, figures from the National Bureau of Statistics showed Monday.

Industrial production climbed 6.1 percent year-over-year in August, slightly faster than previous month's 6.0 percent rise. Economists had expected a 6.3 percent growth for the month.

Retail sales growth improved to 10.8 percent annually in August from 10.5 percent in July. The expected rate of increase was 10.6 percent.

Eurozone industrial production rose for the first time in three months and exceeded economists' expectations, suggesting that a positive contribution to growth is likely in the third quarter.

Industrial production rose 0.6 percent month-on-month following a 0.3 percent slump in June, which was revised from a 0.4 percent fall. Economists had expected a 0.3 percent gain. The growth was also the biggest since February, when production rose 0.9 percent.