TSX Ends Lower On Global Economic Growth Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a fourth straight session on Thursday, tracking some largely declining worldwide equity markets amid concerns over the global economy, with financial, energy, mining and healthcare stocks drifting lower.

Investor worries over the outlook for U.S. interest rates increased after a report from the U.S. Labor Department showed an unexpected drop in initial jobless claims.

First-time claims for U.S. unemployment benefits unexpectedly declined in the week ended September 27, a Labor Department report showed Thursday. Investors now await further cues on the strength of recovery in the U.S. labor market with the non-farm payrolls data due Friday.

Meanwhile, the European Central Bank made no change to interest rates as expected, at its monthly policy meeting in Naples, Italy. The central bank had reduced interest rates in a surprise move last month, with economic momentum in the euro area remaining subdued.

Falling crude prices and lingering geopolitical worries amid the ongoing unrest in Hong Kong and the situation in the Middle East also weighed on markets. A slowdown in China and some disappointing economic data out of the U.S. and Europe have raised prospects of a significant drop in oil demand.

The benchmark S&P/TSX Composite Index closed Thursday at 14,760.64, down 44.80 points or 0.30 percent. The index scaled a intraday high of 14,781.48 and a low of 14,545.59.

On Wednesday, the index closed down 155.07 points or 1.04 percent at 14,805.44, after scaling a intraday high of 14958.50 and a low of 14,764.02.

Crude oil ended higher after some upbeat economic news from the U.S. showed initial claims for unemployment benefits to have dropped more than expected last week.

The Energy Index dropped 0.76 percent, although U.S. crude oil futures for November delivery adding $0.28 or 0.3 percent to close at $91.01 a barrel Thursday on the Nymex.

Among energy stocks, Encana Corp. (ECA.TO) added 0.63 percent, Cenovus Energy Inc. (CVE.TO) gathered 0.72 percent, Talisman Energy Inc. (TLM.TO) dropped 3.61 percent, and Canadian Natural Resources Limited (CNQ.TO) surrendered 0.49 percent. Suncor Energy Inc. (SU.TO) inched up 0.05 percent, while Enbridge Inc. (ENB.TO) shed 1.17 percent.

The Financial Index fell 0.37 percent, with Toronto-Dominion Bank (TD.TO) down 0.66 percent, Canadian Imperial Bank of Commerce (CM.TO) down 0.67 percent, Royal Bank of Canada (RY.TO) inched up 0.03 percent, Bank of Nova Scotia (BNS.TO) fell 1.05 percent, and Bank of Montreal (BMO.TO) dropped 0.26 percent. Nonetheless, National Bank of Canada (NA.TO) gathered 0.93 percent.

Gold futures ended lower Thursday, on some upbeat data from the U.S. that showed initial claims for unemployment benefits dropping more than expected last week, notwithstanding a weak dollar.

The Global Gold Index gained 1.00 percent, with gold for December delivery inching down $0.40 to settle at $1,215.10 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Barrick Gold Corp. (ABX.TO) dropped 0.42 percent, Yamana Gold Inc. (YRI.TO) added 4.10 percent, B2Gold Corp. (BTO.TO) gained 2.16 percent, Eldorado Gold Corp. (ELD.TO) up 3.67 percent, and Goldcorp Inc. (G.TO) gained 1.85 percent.

The Capped Materials Index slipped 0.16 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) surrendering 0.89 percent.

The Diversified Metals & Mining Index fell 0.97 percent, with First Quantum Minerals Ltd. (FM.TO) slipping 0.47 percent, Lundin Mining Corp. (LUN.TO) down 3.05 percent, and Teck Resources Limited (TCK.B.TO) down 0.82 percent.

The Capped Industrials Index gained 0.89 percent, with Bombardier Inc. (BBD.B.TO) adding 0.54 percent and SNC-Lavalin Group Inc. (SNC.TO) up 0.59 percent.

The Information Technology Index dropped 0.51 percent, with smartphone maker BlackBerry Limited (BB.TO) diving 4.95 percent.

Wi-LAN Inc. (WIN.TO) plummeted 10.15 percent after indicating that the U.S. District judge declared the company's accusations against Apple infringing on its patents as invalid.

The Healthcare Index dipped 1.45 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) shedding 3.73 percent, Extendicare Inc. (EXE.TO) down 1.22 percent, and Catamaran Corp. (CCT.TO) gaining 1.15 percent.

The Telecom Index added 0.78 percent with Rogers Communications Inc. (RCI.B.TO) gained 0.69 percent, TELUS Corp. (T.TO) moved up 1.36 percent, and BCE Inc. (BCE.TO) gathered 0.71percent.

The Consumer Staples Index moved up 0.27 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) up 0.20 percent.

Sears Canada Inc. (SCC.TO) fell 1.08 percent after Sears Holdings Corp. (SHLD) announced that it expects to generate up to US$380 million in proceeds from its interest in Sears Canada, by early November 2014.

Agrium Inc. (AGU.TO) dropped 2.58 percent, after indicating on Wednesday that it expects third quarter earnings from continuing operations to be in the range of US$0.45 to US$0.55 per share.

Bell Aliant Regional Communications Inc. (BA.TO) is up marginally after Canada's competition watchdog said the company has agreed to a long-term lease of a significant part of its landline network to Bragg Communications Inc.'s Eastlink, aiming to win approval for the acquisition of O.N. Tel Inc. Bell Aliant moved up 0.39 percent.

In economic news from the U.S., a Labor Department report showed initial jobless claims to have declined to 287,000 in the week ended September 27, a decrease of 8,000 from the previous week's revised level of 295,000. Economists expected jobless claims at 297,000 from the 293,000 originally reported for the previous week.

A Commerce Department report earlier in the day showed factory orders to have pulled back by a more than expected 10.1 percent in August, after having jumped 10.5 percent in July. Economists expected orders to drop by about 9.3 percent.

The European Central Bank today left its refinancing rate at a record low of 0.05 percent and the deposit rate at - 0.20 percent, in line with expectations, after reducing them in a surprise move last month. The marginal lending rate too has been maintained at 0.30 percent.

Eurozone's producer prices declined in August at a faster rate than expected, a report from Eurostat showed Thursday. Producer prices dropped 1.4 percent year-over-year in August, more than the 1.2 percent fall predicted by economists. In July, producer prices had decreased at a revised 1.3 percent.