TSX Ends Lower On Resource Stocks, Commodities - Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Thursday, tracking declining global equity markets, led by resource stocks and weak commodity prices after the European Central Bank unexpectedly slashed its key interest rate to a new record low.

Investors largely ignored a report from the U.S. Commerce Department that economic activity in the country grew more than anticipated in the third quarter. As well, first-time claims for U.S. unemployment benefits fell for the fourth consecutive week in the week ended November 2, with claims coming in almost in line with economist estimates.

The European Central Bank surprisingly cut its key interest rate to a new record low, having left it unchanged for five successive months. The bank slashed the main refinancing rate by 25 basis points to a record low 0.25 percent. Previously, the bank slashed the rate by a quarter-point in May, which was the first reduction in nine months.

Most European markets also ended lower after the rate cut, even as Asian markets settled firmly lower with investors preferring to stay on the sidelines awaiting cues from the ECB meeting later.

The S&P/TSX Composite Index closed Thursday at 13,294.20, down 86.21 points or 0.64 percent. The index touched an intraday high of 13,394.17 and a low of 13,285.23.

The much awaited Twitter Inc. (TWTR: US) IPO took off amidst great expectations, with the share soaring over 92 percent in its trading debut on the New York Stock Exchange Thursday. The stock closed at US$44.90 on a volume of over 117 million shares.

The Information Technology Index dropped 0.12 percent, with smartphone maker BlackBerry Limited (BB.TO) shedding 2.17 percent.

The Diversified Metals & Mining Index dropped 2.35 percent, with First Quantum Minerals Ltd. (FM.TO) down 3.10 percent, Osisko Mining Corp. (OSK.TO) dived 5.65 percent, and Lundin Mining Corp. (LUN.TO) dropped 2.99 percent. Teck Resources (TCK_B.TO) surrendered 2.62 percent.

The Capped Materials Index surrendered 1.85 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) edging up 0.15 percent.

Gold ended lower Thursday, with the dollar strengthening against a basket of some major currencies after the European Central Bank decided to slash its key interest rate to a new record low.

The Global Gold Index shed 2.19 percent, with gold futures for December delivery, the most actively traded contract, dropping $9.30 or 0.7 percent to close at $1,308.50 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 2.96 percent, while Goldcorp Inc. (G.TO) shed 2.82 percent. Kinross Gold Corp. (K.TO) slipped 3.22 percent, while Eldorado Gold Corp. (ELD.TO) plunged 5.15 percent. B2Gold Corp. (BTO.TO) dropped 3.57 percent, while Barrick Gold Corp. (ABX.TO) slipped 0.78 percent.

Oil prices ended lower Thursday on a strong dollar after the European Central Bank's move to cut interest rates in a bid to boost economic growth. Oil prices rallied after some better than expected third quarter U.S. gross domestic product growth and a decline in initial jobless claims. Oil prices have also been under pressure with a glut in supply with inventories soaring over the last six weeks.

The Energy Index shed 1.32 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, dropping $0.60 or 0.6 percent to close at $94.20 a barrel Thursday on the Nymex.

Among energy stocks, Imperial Oil Limited (IMO.TO) dropped 2.49 percent, while Encana Corp. (ECA.TO) lost 1.75 percent. Suncor Energy Inc. (SU.TO) lost 1.64 percent, while Santonia Energy Inc. (STE.TO) plummeted 14.50 percent after reporting some soft financial results for the quarter.

Canadian Natural Resources (CNQ.TO) gathered 0.37 percent after its third-quarter profit surged to C$1.17 billion or C$1.07 per share from C$360 million or C$0.33 per share in the prior-year quarter. On an adjusted basis, net earnings from operations were C$1.0 billion or C$0.93 per share for the period.

The Financial Index edged up 0.04 percent with Bank of Montreal (BMO.TO) down 0.98 percent, while Royal Bank of Canada (RY.TO) slipped 0.51 percent. The Bank of Nova Scotia (BNS.TO) shed 0.39 percent, while Toronto-Dominion Bank (TD.TO) edged down 0.11 percent. National Bank of Canada (NA.TO) added 0.22 percent.

The Capped Industrials Index lost 0.24 percent, with Air Canada (AC.B.TO) gaining 3.14 percent, while Bombardier Inc. (BBD.A.TO, BBD.B.TO) shed 0.86 percent.

The Capped Telecommunications Index gathered 0.26 percent with BCE Inc. (BCE.TO) adding 0.86 percent after its third-quarter earnings dropped to C$343 million or C$0.44 per share from C$527 million or C$0.68 per share last year. Nonetheless, adjusted earnings totaled C$584 million or C$0.75 per share, which was ahead of analysts expectation of C$0.77 per share for the third quarter.

Quick-service restaurant chain Tim Hortons, Inc. (THI.TO) edged up 0.30 percent after reporting improved third quarter net income of C$113.86 million or C$0.75 per share compared to C$105.7 million or C$0.68 per share a year ago.

Manulife Financial Corp. (MFC.TO) rose 2.73 percent after reporting a swing to profit in third-quarter, with net income of C$1.001 billion compared to a loss of C$242 million last year. Earnings per share were C$0.54 compared to a loss of C$0.13 in the prior year quarter.

In economic news from the U.S., the Labor Department said initial jobless claims dropped to 336,000 in the week ended November 2, a decrease of 9,000 from the previous week's revised figure of 345,000. Economists expected claims to dip to 335,000 from the 340,000 originally reported for the previous week.

Separately, the Commerce Department said U.S. gross domestic product rose by 2.8 percent in the third quarter compared to economist estimates for an increase of 2.0 percent. GDP growth accelerated from the 2.5 percent increase in the second quarter, reflecting a deceleration in imports and accelerations in private inventory investment and state and local government spending.

From the eurozone, Germany's industrial production declined 0.9 percent in September from August, data from the Federal Ministry of Economics and Technology showed. Production was forecast to remain flat in September after rising by revised 1.6 percent in August. Production excluding energy and construction dipped 1.1 percent and construction output decreased 1.8 percent.

Elsewhere, the Bank of England held its interest rates at record low 0.50 percent and GBP 375 billion quantitative easing.