TSX Ends Lower On Global Growth Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a third straight session on Thursday, tracking declining global equity markets on concerns over a slowdown in economic growth worldwide. The uncertainty over the outlook for U.S. monetary policy following last week's Federal Reserve decision also weighed on investor sentiment.

The majority of the Canadian sectors ended in the red, led by health care, industrial and financial stocks. However, the main index pared some of the losses with strong gains in gold stocks and to a lesser extent on materials stocks gain.

Markets in Europe ended in the red, after data showed that Germany's consumer confidence is likely to weaken in October. European automakers also remain under pressure due to the Volkswagen emissions scandal.

Markets in the United States ended lower under pressure after some disappointing economic data, with durable goods orders for August dropping and first-time claims for unemployment benefits rising. Investors also eagerly await Federal Reserve Chair Janet Yellen's address later today for additional clarity as to when the U.S. central bank plans to raise interest rates.

In some disappointing economic data from the U.S., durable goods orders dropped for the first time in three months, as a strong dollar and lackluster global economy hurt demand for big-ticket items from the U.S., particularly jets. Meanwhile, the number of people filing initial claims for unemployment benefits in the U.S. moved up less than expected last week, just off its recent lows.

However, on a positive note, U.S. new home sales continued to surge in August, as buyers took advantage of low interest rates and better employment.

The benchmark S&P/TSX Composite Index closed Thursday at 13,338.67, down 45.02 points or 0.34 percent. The index scaled an intraday high of 13,384.51 and a low of 13,237.43.

On Wednesday, the index closed down 107.40 points or 0.80 percent, at 13,383.69. The index scaled an intraday high of 13,560.07 and a low of 13,378.01.

Gold futures ended higher as investors opted for the safe haven appeal of the precious metal after global equity markets continued to decline on some disappointing economic data from the U.S.

The Gold Index surged 7.36 percent, as gold for December delivery soared $22.30 or 2.0 percent, to settle at $1,153.80 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) jumped 6.05 percent, Goldcorp Inc. (G.TO) surged 7.35 percent, and Eldorado Gold (ELD.TO) soared 10.10 percent.

Kinross Gold Corp. (K.TO) surged 7.58 percent, while Barrick Gold (ABX.TO) soared 10.38 percent.

The Capped Materials Index jumped 3.55 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) added 0.25 percent, having surrendered 4.81 percent yesterday.

Agnico Eagle Mines Limited (AEM.TO) soared 11.23 percent, while Agrium Inc. (AGU.TO) slipped 0.15 percent. Franco-Nevada Corp. (FNV.TO) added 4.62 percent, while Silver Wheaton (SLW.TO) jumped 7.97 percent.

The Diversified Metals & Mining Index added 0.18 percent, as Lundin Mining Corporation (LUN.TO) jumped 4.66 percent, while HudBay Minerals Inc. (HBM.TO) added 1.27 percent. First Quantum Minerals (FM.TO) dipped 0.18 percent and Teck Resources Limited (TCK-B.TO) shed 1.02 percent. Capstone Mining (CS.TO) fell 1.02 percent and Sherritt International (S.TO) dropped 2.47 percent.

The heavyweight Financial Index shed 0.49 percent, as Royal Bank of Canada (RY.TO) dipped 0.54 percent and National Bank of Canada (NA.TO) plunged 2.29 percent.

Toronto-Dominion Bank (TD.TO) fell 0.33 percent, Bank of Nova Scotia (BNS.TO) dropped 0.47 percent, Canadian Imperial Bank Of Commerce shed 1.54 percent, and Bank of Montreal (BMO.TO) surrendered 0.23 percent.

Crude oil prices rebounded to end higher as the dollar weakened against a basket of some major currencies and the market anticipating a drop in U.S. production with the steep fall in crude prices.

The Energy Index inched up 0.16 percent, with U.S. crude oil futures for November delivery gaining $0.43 or 1.0 percent, to settle at $44.91 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) dropped 1.83 percent, Canadian Natural Resources Limited (CNQ.TO) added 0.27 percent, and Canadian Oil Sands (COS.TO) gained 3.18 percent.

Cenovus Energy (CVE.TO) moved up 0.45 percent, while Baytex Energy Corp. inched up 0.22 percent. Encana Corp. (ECA.TO) gathered 1.36 percent, while Suncor Energy (SU.TO) added 1.17 percent.

The Capped Health Care Index slumped 3.12 percent, as Valeant Pharmaceuticals International (VRX.TO) dived 3.82 percent, Extendicare Inc. (EXE.TO) fell 0.62 percent, and Concordia Healthcare Corp. (CXR.TO) slumped 3.31 percent.

The Capped Information Technology Index shed 1.40 percent, as BlackBerry Limited (BB.TO) fell 2.30 percent, Descartes Systems Group (DSG.TO) dropped 0.66 percent, and Constellation Software (CSU.TO) slumped 3.06 percent.

The Capped Telecommunication Index edged down 0.37 percent, as Rogers Communication (RCI-B.TO) dropped 0.48 percent and BCE Inc. (BCE.TO) edged down 0.09 percent.

TELUS Corp. (T.TO) dipped 0.07 percent, while Manitoba Telecom Services Inc. (MBT.TO) slipped 0.84 percent.

The Capped Industrials Index fell 1.64 percent, as Bombardier (BBD-B.TO) plummeted 8.18 percent, having plunged 8.62 percent yesterday.

Finning International Inc. (FTT.TO) plunged 5.62 percent amid the Volkswagen emission scandal, and Air Canada dropped 3.57 percent. Canadian Pacific Railway (CP.TO) fell 1.42 percent, while Canadian National Railway (CNR.TO) dipped 0.33 percent. Magna International Inc. (MG.TO) gained 1.05 percent.

CAE (CAE.TO) shed 1.15 percent, while AutoCanada (ACQ.TO) fell 1.46 percent.

Calfrac Well Services Ltd. (CFW.TO) plunged 5.15 percent after cutting its dividend by 75 percent, the second reduction this year. The decrease reflects the impact that low oil and natural gas prices have had on the demand for, and pricing of, North American oilfield services.

Linamar (LNR.TO) shed 0.13 percent, after indicating that it expects no impact to results related to the Volkswagen emissions allegations.

CCL Industries (CCL.B.TO) fell 1.91 percent. The company plans to invest $35 million in its Mexican operations.

Total Energy Services Inc. (TOT.TO) fell 0.27 percent, after revealing that it will not pursue a takeover of Strad Energy Services Ltd. (SDY.TO).

In economic news, a report from the U.S. Department of Commerce on Thursday showed durable goods orders to have dropped 2 percent in August, which was in line with economists' expectation. Durable goods orders were down for the first time in three months, as the strong dollar and lackluster global economy hurt demand for big-ticket items from the U.S., particularly jets.

The number of people filing first-time unemployment claims edged up less than expected for the latest week, according to government data released on Thursday. This left the figure just off its recent lows.

The U.S. Department of Labor said initial jobless claims, a measure of the number of first-time unemployment filings, came in at 267,000 for the week ended September 19. This was up 3,000 from the previous week's figure of 264,000. Economists had expected the figure to come in at 275,000.

U.S. new home sales continued to surge in August, as buyers took advantage of low interest rates and better employment. New home sales rose 5.7% at an annual rate of 552,000 in August, according to the Census Bureau. Economists expected sales to rise 1.6 percent last month to a seasonally adjusted annual rate of 515,000. New home sales are 21.6 percent higher compared to August 2014.

From Europe, Germany's consumer confidence is likely to weaken in October, survey data from market research group GfK showed Thursday. The forward-looking consumer sentiment index dropped to 9.6 in October from 9.9 in September. It was forecast to ease marginally to 9.8.

German business sentiment improved unexpectedly in September, reports said citing data from the Munich-based Ifo Institute on Thursday. The Ifo Business Climate Index rose to 108.5 in September from 108.3 in August. It was forecast to fall to 107.9.

French business confidence reached its highest level in more than four years in September, survey data from the statistical office Insee showed Thursday. The business sentiment index for manufacturers improved to 104 in September from 103 in August. This was the highest score since August 2011, the Insee said. Economists had forecast the indicator to remain unchanged at 103.

U.K. mortgage approvals rose to its highest level since early 2014 in August, British Bankers' Association reported Thursday. The number of mortgage approvals rose to 46,743 in August from 46,315 in July. This was the highest since February 2014, when it totaled 47,581.