TSX Ends Lower On Greece, China -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Friday, tracking declining global markets after Greece voted to reject the austerity measures proposed by its international creditors. Weakness in energy and mining stocks weighed on the market as oil prices plummeted over seven percent on the New York Mercantile Exchange.

Investors also fretted over the worst Chinese stock plunge since 1992. In an effort to stabilize stock markets, the Chinese government has imposed restrictions on new listings, with brokerages to buy shares and the central bank pledging liquidity support.

The European markets ended in the red on Monday after the Greece voted an overwhelming 'No' in Sunday's referendum. The 'no' vote on the referendum has added to recent concerns about Greece defaulting and exiting from the eurozone. The

The European Council President Donald Tusk has convened a special Euro Summit on July 7 to discuss the situation after the referendum in Greece. Ahead of the Euro summit, German Chancellor Angela Merkel and French President Francois Hollande are set to hold talks in Paris Monday.

Meanwhile, Germany says it sees no reason to re-start talks with Greece.

Markets in the United States also ended in negative territory after the results of the Greek vote.

In some disappointing economic news, activity in the U.S. service sector expanded at a modestly faster rate in June, with the index of activity in the sector rising slightly less than expected, a report from the Institute for Supply Management on Monday.

The benchmark S&P/TSX Composite Index closed Monday at 14,593.57, down 88.82 points or 0.60 percent. The index scaled an intraday high of 14,670.26 and a low of 14,524.64.

On Friday, the index closed up 44.40 points or 0.30 percent, at 14,682.39. The index scaled an intraday high of 14,682.39 and a low of 14,622.30.

Crude oil futures plummeted on demand growth concerns after Greek voters rejected a bailout offer proposed by its international creditors, indicating a likely exit from the eurozone.

The Energy Index fell 2.13 percent, with U.S. crude oil futures for August delivery plummeting $4.40 or 7.7 percent, to settle at $52.53 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 1.21 percent, while Canadian Natural Resources Limited (CNQ.TO) fell 1.16 percent. Crescent Point Energy Corp. (CPG.TO) gained 0.70 percent, while Encana Corp. (ECA.TO) dived 3.83 percent.

Cenovus Energy Inc. (CVE.TO) shed 3.65 percent, Legacy Oil + Gas (LEG.TO) lost 1.64 percent, Canadian Oil Sands (COS.TO) plunged 6.73 percent, Pacific Rubiales Energy (PRE.TO) slipped 0.19 percent and Enbridge (ENB.TO) dropped 1.52 percent.

Husky Energy Inc. (HSE.TO) dipped 0.08 percent, as the company continues to ramp up production at the Sunrise Energy Project.

Gold futures ended higher on its safe haven appeal after Greece rejected the bailout plan demanded by its international creditors, increasing the likelihood of its exiting the Eurozone. European Council President Donald Tusk has convened a special Euro summit meet on July 7 to discuss the situation, post the referendum.

The Gold Index gained 1.90 percent, with gold for August delivery adding $9.70 or 0.8 percent, to settle at $1,173.20 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp Inc. (G.TO) added 2.58 percent, Barrick Gold Corp. (ABX.TO) jumped 2.69 percent, and Kinross Gold Corp. (K.TO) moved up 1.05 percent.

IAMGOLD Corp. (IMG.TO) jumped 3.33 percent, after clarifying that it is not expecting a material impact on its Essakane Mine due to a code revision by transitional assembly of Burkina Faso.

The Capped Materials Index gained 0.48 percent, as Agrium Inc. (AGU.TO) added 1.45 percent and Agnico Eagle Mines Limited (AEM.TO) moved up 3.98 percent. Potash Corp. of Saskatchewan (POT.TO) fell 0.61 percent.

The Diversified Metals & Mining Index dropped 2.24 percent, even as First Quantum Minerals Ltd. (FM.TO) shed 3.06 percent and Teck Resources Limited (TCK.B.TO) fell 1.66 percent. HudBay Minerals (HBM.TO) shed 1.92 percent, and Sherritt International (S.TO) surrendered 1.86 percent.

The heavyweight Financial Index fell 0.69 percent, as Royal Bank of Canada (RY.TO) edged down 0.0.04 percent, National Bank of Canada (NA.TO) gained 0.88 percent, and Bank of Montreal (BMO.TO) dropped 0.35 percent.

Toronto-Dominion Bank (TD.TO) fell 0.63 percent, Bank of Nova Scotia (BNS.TO) dropped 0.45 percent, and Canadian Imperial Bank of Commerce (CM.TO) dropped 0.63 percent.

The Capped Health Care Index dipped 0.08 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 0.53 percent, Concordia Healthcare Corp. (CXR.TO) dipped 0.14 percent, while Catamaran (CCT.TO) added 1.26 percent.

The Capped Industrials Index lost 1.29 percent, as Bombardier Inc. (BBD-A.TO) gained 2.22 percent and Finning International Inc. (FTT.TO) moved up 1.24 percent. CAE (CAE.TO) is down 0.73 percent.

Bombardier Inc. (BBD-A.TO) declined 1.73 percent, after its unit Bombardier Commercial Aircraft announced that Qazaq Air will start operations in Kazakhstan with Bombardier Q400 Aircraft.

WestJet Airlines Ltd. (WJA.TO) lost 0.83 percent. The company announced a 3-year partnership as the official airline of the RBC Canadian Open and the Canadian Pacific Women's Open.

Air Canada (AC.TO) dropped 0.74 percent after announcing its operations are returning to normal this morning following labor disruption at Consolidated Aviation Fueling of Toronto.

The Information Technology Index slipped 0.08 percent, as BlackBerry Inc. (BB.TO) fell 0.20 percent, Sierra Wireless, Inc. (SW.TO) dived 2.74 percent, and Descartes Systems Group Inc. (DSG.TO) declined 0.89 percent.

The Capped Telecommunication Index dropped 0.70 percent, as TELUS Corp. (T.TO) fell 0.23 percent, BCE Inc. (BCE.TO) slipped 0.06 percent, Manitoba Telecom Services (MBT.TO) shed 1.40 percent, and Rogers Communication (RCI-B.TO) declined 0.94 percent.

On the economic front, activity in the U.S. service sector expanded at a modestly faster rate in June, with a report from the Institute for Supply Management on Monday showing its non-manufacturing index inched up to 56.0 in June from 55.7 in May. A reading above 50 indicates growth in the service sector. Economists expected the index to rise to 56.4.

Eurozone investor confidence improved from a four-month low despite the Greece crisis, survey data from the think tank Sentix showed Monday. The investor confidence index rose unexpectedly to 18.5 in July from 17.1 in June, while it was forecast to fall to 16.

Germany's factory orders decreased for the first time in three months in May reflecting the weakness in domestic market. Factory orders fell 0.2 percent month-on-month in May, in contrast to a 2.2 percent increase in April, which was revised up from a 1.4 percent growth, Destatis reported Monday. This was the first decline in three months, but was slower than the expected decrease of 0.4 percent.

Germany's construction sector activity grew at the weakest pace in five months in June as new orders declined, survey data from Markit Economics showed Monday. The seasonally adjusted Purchasing Managers' Index, or PMI, for the construction sector, declined to 50.7 in June from 50.8 in the previous month.