TSX Ends Lower On Global Cues, China Data -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a seven-day winning streak to end slightly lower on Monday, tracking rising global equity markets, and on some weak trade data from China. Weakness in mining and gold stocks is limited the market at the start of the new trading week.

There has been little global economic data to drive the direction of trading, with the exception of a weak Chinese trade report.

China's exports logged an unexpected double-digit decline in March, with imports falling more than expected, weighing on the outlook for economic growth in the first quarter.

Markets in European are turned in a mixed performance Monday, following the sharp gains of the previous trading week. Mining stocks are among the weakest performers, following a downgrade by Citigroup.

Markets in the United States ended in the red, with traders opting for profit taking. following the strength seen last week. With little or no U.S. economic data, some of the investors preferred to keep on the sidelines. Investors are also bracing for a deluge of corporate earnings and economic reports this week. A number of big banks will report quarterly results this week, with reports on retail sales, industrial production, housing starts, and producer and consumer price inflation due for release.

The benchmark S&P/TSX Composite Index is up 24.59 points or 0.16 percent at 15,413.02.

The benchmark S&P/TSX Composite Index closed Monday at 15,383.59, down 4.84 points or 0.03 percent. The index scaled an intraday high of 15,446.45 and a low of 15,352.14.

On Friday, the index closed up 62.12 points or 0.41 percent, at 15,388.43. The index scaled an intraday high of 15,406.06 and a low of 15,350.36.

Gold futures ended lower on Monday, as the dollar trended higher against some major currencies and some soft trade data from China, with its trade surplus dropping sharply in March.

The Gold Index gained 1.04 percent, with gold for June delivery shedding $5.30 or 0.4 percent to settle at $1,199.30 an ounce on the New York Mercantile Exchange Monday.

Goldcorp Inc. (G.TO) gained 2.66 percent, while Yamana Gold Inc. (YRI.TO) shed 3.07 percent. Among other gold stocks, Kinross Gold Corp (K.TO) dived 4.14 percent, Eldorado Gold Corp. (ELD.TO) fell 3.61 percent, and Barrick Gold Corp. (ABX.TO) surrendered 2.26 percent.

Crude oil prices ended higher on expectations of increased demand from China, even as the dollar continued to strengthen. Markets are betting that a recent series of disappointing economic news from China will compel Beijing to announce stimulus measures in the near future.

The Energy Index inched up 0.03 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, $0.27 or 0.5 percent to settle at $51.91a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) jumped 2.76 percent, Suncor Energy Inc. (SU.TO) fell 0.38 percent, and Canadian Natural Resources Limited (CNQ.TO) dropped 0.34 percent.

Crescent Point Energy Corp. (CPG.TO) fell 0.68 percent, while Cenovus Energy Inc. (CVE.TO) added 0.23 percent. Bonterra Energy (BNE.TO) advanced 1.58 percent, while Legacy Oil + Gas Inc. (LEG.TO) added 3.03 percent.

Encana Corp. (ECA.TO) ended flat at $14.26 a share, while Pacific Rubiales Energy Corp. (PRE.TO) gained 1.54 percent.

The Capped Materials Index shed 0.96 percent, mainly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.51 percent and Agrium Inc. (AGU.TO) dropping 0.10 percent.

The Diversified Metals & Mining Index fell 2.25 percent, as First Quantum Minerals Ltd. (FM.TO) shed 3.15 percent and Lundin Mining Corp. (LUN.TO) dropped 1.38 percent.

Teck Resources (TCK.B.TO) fell 3.76 percent, while Finning International Inc. (FTT.TO) gained 0.97 percent.

Capstone Mining (CS.TO) is lower by 0.74 percent, after announcing its combined first quarter copper production totaling 23,700 tonnes.

The heavyweight Financial Index moved up 0.28 percent, as Bank of Nova Scotia (BNS.TO) gained 0.05 percent and Bank of Montreal (BMO.TO) added 0.26 percent.

National Bank of Canada (NA.TO) slipped 0.06 percent, Royal Bank of Canada (RY.TO) added 0.74 percent. Toronto-Dominion Bank (TD.TO) inched up 0.14 percent, while Canadian Imperial Bank of Commerce (CM.TO) fell 0.03 percent.

The Capped Health Care Index fell 0.47 percent, as Extendicare (EXE.TO) gained 0.13 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) gathered 1.06 percent, Catamaran Corp. (CCT.TO) gained 0.23 percent, and Concordia Healthcare (CXR.TO) dived 3.94 percent.

The Capped Industrials Index lost 0.47 percent, with Bombardier Inc. (BBD.B.TO) down 1.52 percent. Canadian Pacific Railway Limited (CP.TO) shed 0.50 percent, while Canadian National Railway Company (CNR.TO) fell 1.62 percent.

The Information Technology Index gathered 0.38 percent, with BlackBerry (BB.TO) up 0.92 percent and Constellation Software Inc. (CSU.TO) down 1.91 percent. Sierra Wireless, Inc. (SW.TO) gained 0.47 percent, while Descartes Systems Group Inc. (DSG.TO) added 0.30 percent.

The Capped Telecommunication Index inched up 0.02 percent, with BCE Inc. (BCE.TO) up 0.75 percent, Rogers Communications Inc. (RCI.B.TO) down 0.69 percent, and TELUS Corp. (T.TO) adding 0.37 percent. Manitoba Telecom Services Inc. (MBT.TO) shed 0.37 percent.

Aecon Group Inc. (ARE.TO) climbed 2.86 percent, after announcing the completion of the sale of its wholly-owned subsidiary Innovative Steam Technologies to Fulcrum Capital Partners.

Brick Brewing (BRB.TO) gained 1.31 percent, after its full year 2015 earnings increased to $0.04 from $0.02 last year.

Pulse Seismic Inc. (PSD.TO) fell 5.82 percent, after reporting a first quarter loss of $0.06 per share, compared to the loss of $0.03 per share last year.

On the economic front, China's exports logged an unexpected double-digit decline in March and imports fell more than expected, weighing on the outlook for economic growth in the first quarter. Exports decreased 14.6 percent in March from last year, data from the General Administration of Customs showed Monday. Shipments were expected to grow 9 percent. Suggesting weak domestic demand, imports dropped 12.3 percent, faster than an expected fall of 10 percent.

China's trade surplus fell sharply to $3.1 billion, below February's surplus of $60.6 billion and a $40.1 billion forecast by economists. Foreign trade slid 13.5 percent on a yearly basis.

Meanwhile, the World Bank has predicted China's economic growth to slow to 7.1 percent in 2015 from 7.4 percent projected earlier. In 2017, China's economy is expected drop to 6.9 percent while it addresses financial vulnerabilities and achieve sustainable growth. Economic growth in East Asia-Pacific region is expected to slow to 6.7 percent in 2015 from 6.9 percent in 2014

France's current account deficit in February increased from the previous month, as the visible trade shortfall widened due to the reduction in the growth of international trade, figures from Bank of France showed Monday.

The seasonally adjusted current account deficit rose to EUR 1.8 billion in February from EUR 0.2 billion in January. The goods trade surplus increased to EUR 2.9 billion from EUR 2.3 billion a month ago.