TSX Ends Lower On Global Cues, Ukraine -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower Thursday, on global cues with investors tracking weakness in European and U.S. markets on escalating tensions in Ukraine, notwithstanding an upbeat second quarter gross domestic product data from the U.S.

The main index was pulled down mainly by mining and information tech stocks, with the financial sector dragged down significantly by shares of Toronto Dominion Bank and Canadian Imperial Bank of Commerce after reporting their earnings.

In some upbeat economic news, the U.S. economy expanded faster during the second quarter than previously estimated, with revised figures from the U.S. Commerce Department showing Gross Domestic Product, a broad measure of economic activity, rose by 4.2% in the April-to-June period.

Meanwhile, the Ukraine conflict continued to escalate after President Petro Poroshenko on Thursday alleged Russian troops had been sent into his country and called for an urgent meeting of the United Nations Security Council and the European Council to discuss the issue.

Ukraine has accused Russian forces of seizing a border town in the eastern part of the country. Russia, a top oil producer, already faces sanctions for its role in stirring up the conflict in Ukraine.

The S&P/TSX Composite Index closed Thursday at 15,558.17, down 44.48 points or 0.29 percent, after having scaled an an all-time high closing yesterday. The index scaled a intraday high of 15,600.78 and a low of 15,541.95.

On Wednesday, the index ended lower amid some sluggish commodity prices and profit taking with little market moving economic indicators.

Crude oil ended higher amid supply concerns and worries over developments in Ukraine, with crude stockpiles in the U.S. having declined more than expected last week.

The Energy Index shed 0.11 percent, with U.S. crude oil futures for October delivery gaining $0.67 or 0.7 percent to close at $94.55 a barrel Thursday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) down 0.09 percent, Enbridge Inc. (ENB.TO) dropped 0.40 percent, Suncor Energy Inc. (SU.TO) inched up 0.05 percent, Encana Corp. (ECA.TO) edged down 0.04 percent, and Canadian Natural Resources Limited (CNQ.TO) slipped 0.09 percent.

Talisman Energy (TLM.TO) dropped 1.71 percent, with reports yesterday indicating its deal with Spanish energy company Repsol has stalled.

The Financial Index dropped 0.82 percent, with Canada's second-largest lender Toronto-Dominion Bank (TD.TO) shedding down 0.76 percent despite reporting a better-than-expected profit in its third quarter, reflecting strong growth in all segments, higher revenues as well as lower provision for credit losses.

TD Bank's attributable net income on an adjusted basis was C$2.12 billion or C$1.15 per share for the quarter, which compares with analysts' earnings expectations of C$1.09 per share.

Canadian Imperial Bank of Commerce (CM.TO) dived 2.16 percent after reporting a better-than-expected third-quarter profit, helped by strong gains at its wealth management and investment dealer divisions. Excluding items, the bank's earnings for the quarter was C$2.23 per share, with analysts anticipating earnings of C$2.21 per share.

Among other major banks, Royal Bank of Canada (RY.TO) dropped 0.70 percent, Bank of Nova Scotia (BNS.TO) declined 0.95 percent, National Bank of Canada (NA.TO) jumped 2.12 percent, and Bank of Montreal (BMO.TO) lost 0.28 percent.

Gold futures ended higher on its safe haven appeal with investors keeping away from the riskier equity assets, even as the situation in Ukraine worsened.

Global Gold Index added 0.79 percent, with gold for December delivery gaining $7.00 or 0.5 percent to close at $1,290.40 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, B2Gold Corp. (BTO.TO) gained 2.57 percent, Yamana Gold Inc. (YRI.TO) added 0.67 percent, Eldorado Gold Corp. (ELD.TO) moved up 0.23 percent, and Kinross Gold Corp. (K.TO) dipped 0.47 percent.

Barrick Gold Corp. (ABX.TO) added 0.46 percent, while Goldcorp Inc. (G.TO) moved up 0.84 percent.

The Capped Materials Index surrendered 0.06 percent mostly on gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) inching up 0.03 percent.

The Diversified Metals & Mining Index plummeted 2.19 percent, with First Quantum Minerals Ltd. (FM.TO) plunging 3.16 percent, Lundin Mining Corp. (LUN.TO) plummeted 4.45 percent, Sherritt International Corp. (S.TO) surrendered 2.82 percent, and Teck Resources Limited (TCK.B.TO) fell 1.63 percent.

The Capped Industrials Index gained 0.38 percent, with Air Canada (AC.B.TO) moving up 0.81 percent.

The Capped Telecommunications Index gained 0.26 percent, with Rogers Communications Inc. (RCI.B.TO) adding 0.22 percent and BCE Inc. (BCE.TO) inching up 0.04 percent.

The Information Technology Index shed 1.10 percent, with BlackBerry Limited (BB.TO) dropping 0.80 percent.

The Healthcare Index dropped 0.38 percent, with Valeant Pharmaceuticals International Inc. (VRX.TO) slipping 0.08 percent.

The Consumer Discretionary Index dropped 0.22 percent, with Tim Hortons Inc. (THI.TO) adding 0.79 percent amid its merger deal with Burger King Worldwide Inc. (BKW) in focus.

In corporate news, design firm Stantec Inc. (STN.TO) Thursday said it has signed a letter of intent to acquire Penfield & Smith, with the acquisition expected to strengthen its infrastructure capabilities and presence on California's Central Coast.

In economic news from the U.S., pending home sales in rebounded in July due to some low interest rates and confidence in the U.S. economic recovery, according to the National Association of Realtors. NAR's Pending Home Sales Index climbed 3.3 percent to 105.9 in July from 102.5 in June. Despite having now risen in four of the last five months, pending home sales remain 2.3 percent below July 2013.

Meanwhile, the number of people filing claims for first-time unemployment benefits in the U.S. remained below the key 300,000 mark for a second consecutive week, a good sign for job growth.

A U.S. Department of Labor report showed initial jobless claims, a key gauge of layoff activity, came in at 298,000 for the week ended August 22. This was down 1,000 compared to the previous week's revised total of 299,000. Economists expected initial claims at 300,000, compared to the 298,000 originally reported for the previous week.

From Europe, eurozone economic confidence weakened more-than-expected in August to its lowest level in eight months, underscoring rising pessimism amid heightened geopolitical tensions and stagnating economic recovery. The index dropped to 100.6 in August, the lowest score since December, from 102.1 in July, the European Commission said Thursday.

Meanwhile, Germany's inflation in August held steady at its lowest level in four-and-a-half years, preliminary figures from the statistical office Destatis showed Thursday. The consumer price index rose 0.8 percent year-on-year, same as in July and in line with economists' expectations. The figure was the lowest since February 2010.