TSX Ends Lower On Profit Taking, Weak Commodity Prices -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a six-day gain to end lower on Monday, with investors opting for some profit taking and sluggish commodity prices, even as results of a global business outlook survey from Markit Economics showed global business confidence to have dropped to a five-year low weighed on the market.

However, last week's surprise interest rate cut in China and prospects of more stimulus from the European Central Bank limited the market's downside.

The benchmark S&P/TSX Composite Index closed Friday at 15,015.41, down 95.72 points or 0.63 percent. The index scaled a intraday high of 15,132.64 and a low of 14,980.16.

On Friday, the index closed up 35.90 points or 0.24 percent at 15,111.08, after rising to 15,184.36 intraday, the best level since September 22, due mainly to a spike in resource stocks as commodity prices strengthened after a surprise Chinese interest rate cut and on prospects of further stimulus by the European Central Bank.

Crude oil ended lower as negotiations between Iran and the West to curtail Tehran's nuclear program were extended by seven months, even as awaited the outcome from the OPEC upcoming meeting on November 27.

Reports indicate Iran is likely ask OPEC to cut the output target by 1 million barres a day, althoug some members including Saudi Arabia prefer to settle for lower prices than agreeing for a reduction in output.

The Energy Index edged down 0.02 percent, with U.S. crude oil futures for January delivery shedding $0.73 or near 1.0 percent to close at $75.78 a barrel on the Nymex Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) fell 0.49 percent, Talisman Energy Inc. (TLM.TO) dropped 3.98 percent, Canadian Oil Sands Limited (COS.TO) shed 3.12 percent, Cenovus Energy Inc. (CVE.TO) surrendered 1.85 percent, and Pacific Rubiales Energy Corp. (PRE.TO) dived 4.60 percent.

Encana Corp. (ECA:TSX) fell 1.20 percent, Canadian Natural Resources Limited (CNQ.TO) shed 1.52 percent, and Enbridge, Inc. (ENB.TO) inched up 0.19 percent.

Gold futures ended lower on some largely strong global equity markets, prompting investors to seek riskier assets, with a slew of economic data due later this week.

The Global Gold Index slipped 1.04 percent, with gold for December delivery dipping $2.00 or near 0.2 percent to settle at $1,195.70 an ounce on the New York Mercantile Exchange Monday.

In the gold space, Kinross Gold Corp. (K.TO) fell 1.56 percent, Goldcorp Inc. (G.TO) edged down 0.13 percent, Barrick Gold Corp. (ABX.TO) lost 1.52 percent, and Yamana Gold Inc. (YRI.TO) added 0.44 percent.

Detour Gold Corp. (DGC.TO) lost 3.86 percent, while Eldorado Gold Corp. (ELD.TO) added 1.55 percent.

The Capped Materials Index dived 1.92 percent, mostly on declining gold stocks, even as Potash Corp. of Saskatchewan Inc. (POT.TO) plunged 5.64 percent.

The Healthcare Index fell 0.31 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 1.44 percent, Catamaran Corp. (CCT.TO) added 0.13 percent and Extendicare Inc. (EXE.TO) gained 0.73 percent.

The heavyweight Financial Index inched up 0.01 percent, as Bank of Nova Scotia (BNS.TO) gained 0.26 percent, Toronto-Dominion Bank (TD.TO) shed 0.19 percent, Canadian Imperial Bank of Commerce (CM.TO) surrendered 0.51 percent, Bank of Montreal (BMO.TO) added 0.54 percent, and National Bank of Canada (NA.TO) shed 0.47 percent.

Royal Bank of Canada (RY.TO) dropped 0.07 percent.

The Diversified Metals & Mining Index moved up 0.03 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.31 percent, Teck Resources Limited (TCK.B.TO) down 4.46 percent, Lundin Mining Corp. (LUN.TO) down 1.20 percent. Sherritt International Corp. (S.TO) gained 2.16 percent.

The Capped Industrials Index gathered 0.66 percent, with Bombardier Inc. (BBD.B.TO) down 0.47 percent and Air Canada (AC) down 1.68 percent. Canadian National Railway (CNR.TO) added 1.21 percent, Canadian Pacific Railway (CP.TO) gained 1.95 percent, and SNC-Lavalin Group Inc. (SNC.TO) gained 0.55 percent.

The Information Technology Index added 0.45 percent with smartphone maker BlackBerry Limited (BB.TO) up 2.08 percent.

The Telecom Index dipped 0.32 percent, with Rogers Communications Inc. (RCI.B.TO) down 0.47 percent, TELUS Corp. (T.TO) up 0.33 percent, and BCE Inc. (BCE.TO) down 0.69 percent.

The Consumer Discretionary Index gained 0.47 percent, with Tim Hortons Inc. (THI.TO) up 1.03 percent.

The Consumer Staples Index shed 1.41 percent, with Metro Inc. (MRU.TO) down 0.77 percent and Saputo Inc. (SAP.TO) down 0.49 percent.

Onex Corp. (OCX.TO) gained 1.47 percent after agreeing to acquire SIG Combibloc Group AG for about 3.75 billion euros or $4.66 billion.

Endo International plc. (ENL.TO) jumped 5.06 percent after announcing the acquisition of rights to Natesto (testosterone nasal gel) from Trimel BioPharma SRL, a wholly-owned subsidiary of Trimel Pharmaceuticals Corp. (TRL.TO). Trimel Pharmaceuticals is up 21.74 percent.

Hudson's Bay Company (HBC.TO) surged 8.02 percent after revealing plans for a US$1.25 billion, 20-year mortgage on its property in New York City. The company will utilize the proceeds to permanently pay down its term loan.

In economic news, results from the Chicago Federal Reserve survey showed the National Activity Index to have declined to 0.14 in October from 0.29 in the preceding month.

German business confidence improved unexpectedly in November reversing last month's decline, as the economy returned to growth avoiding a recession. The business confidence index in November rose for the first time in seven months to 104.7 from 103.2 in October -- the lowest since December 2012, a survey conducted by the Ifo institute showed Monday. Economists forecast the index to fall further to 103.

Meanwhile, a Global Business Outlook survey from Markit Economics on Monday showed optimism among companies declined sharply to its lowest level since the survey was first initiated five years ago.

Among other data due this week from the U.S. are the results of consumer confidence surveys by the Conference Board and the University of Michigan and Reuters, the Commerce Department's data on personal income and spending, new home sales and durable goods orders.

Also due this week are pending home sales data from the National Association of Realtors, preliminary reading of third quarter GDP and the Labor Department's weekly jobless claims report, among others.