TSX Ends Lower On Weak Commodity Prices -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a five-day gain to end lower Friday, on profit taking by investors and driven by lower commodity prices. Most Canadian sectors ended in the red with the heaviest losses recorded in gold, energy, and mining stocks. Gold prices have dropped to their lowest level since 2010 after China revealed its gold reserves.

The majority of the European markets ended modestly to the downside at the end of the week. The German parliament voted to authorize its finance ministry to negotiate a third bailout with Greece. Greek banks are due to reopen Monday after the European Central Bank lifted the emergency funding limit by EUR 900 million for a week and eurozone officials agreed for a short-term loan to the crisis struck nation that aims for a bailout.

Markets in the United States ended with a mixed performance, with the Nasdaq ending at an all time high with Google's strong showing following its strong earnings report. The Dow Jones ended slightly to the downside.

In a slew of upbeat economic news, U.S. consumer prices rose in line with estimates in June, partly reflecting another notable increase in energy prices. In another upbeat sign for the housing market, a Commerce Department report on Friday showed significant increases in both housing starts and building permits in June.

Nevertheless, a report from the University of Michigan on Friday said consumer sentiment in the U.S. pulled back in July, after having reported a substantial improvement in in the previous month.

The benchmark S&P/TSX Composite Index closed Friday at 14,642.84, down 88.24 points or 0.60 percent. The index scaled an intraday high of 14,738.30 and a low of 14,597.56.

On Thursday, the index closed up 68.80 points or 0.47 percent, at 14,731.08. The index scaled an intraday high of 14,748.00 and a low of 14,693.99.

Investors mulled over China's first revelation of its gold reserves since 2009. The People's Bank of China Friday said gold reserves in the country reached a record 1,658 tons as of June, 2015, up a near 60 percent from 1,054 tons in April 2009. However, the surge was below analysts' expectations, dragging gold prices down sharply.

Gold futures slipped to end at a more than five-year low on Friday, after China for the first time revealed its gold reserves since 2009, which was below expectations.

The Gold Index plunged 4.76 percent, with gold for August delivery dropping $12.00 or 1.1 percent, to settle at $1,131.90 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) plunged 6.10 percent, Barrick Gold Corp. (ABX.TO) dived 4.87 percent, and Yamana Gold Inc. (YRI.TO) surrendered 5.20 percent.

The Capped Materials Index dived 2.77 percent, as Agrium Inc. (AGU.TO) gained 0.43 percent and Agnico Eagle Mines Limited (AEM.TO) slipped 0.72 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) moved up 0.37 percent.

Crude oil futures rallied toward close but still ended slightly lower on continued fears of a supply glut with Iran set to flood global markets and a strong dollar.

The Energy Index plunged 1.97 percent, with U.S. crude oil futures for August delivery edging down $0.02, to settle at $50.89 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) fell 1.87 percent, while Pacific Rubiales Energy Corp. (PRE.TO) plummeted 11.90 percent. Crescent Point Energy Corp. (CPG.TO) dropped 1.67 percent, while Encana Corp. (ECA.TO) fell 2.68 percent.

The Diversified Metals & Mining Index dived 2.27 percent, as First Quantum Minerals Ltd. (FM.TO) dived 3.14 percent, and HudBay Minerals (HBM.TO) fell 3.22 percent.

Sherritt International (S.TO) dropped 4.19 percent, while Teck Resources Limited (TCK-B.TO) fell 3.83 percent. Lundin Mining Corp. (LUN.TO) dropped 1.00 percent.

The heavyweight Financial Index shed 0.45 percent, as National Bank of Canada (NA.TO) fell 1.35 percent, and Bank of Montreal (BMO.TO) dropped 0.32 percent.

Toronto-Dominion Bank (TD.TO) shed 0.51 percent, while Canadian Imperial Bank of Commerce (CM.TO) fell 0.52 percent. Royal Bank of Canada (RY.TO) surrendered 0.78 percent. Bank of Nova Scotia (BNS.TO) declined 0.86 percent.

\The Capped Health Care Index slipped 0.16 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) down 1.41 percent and Concordia Healthcare Corp. (CXR.TO) dipped 0.48 percent.

The Capped Information Technology Index moved up 0.20 percent, as BlackBerry Limited (BB.TO) inched up 0.10 percent and Constellation Software (CSU.TO) moved up0.47 percent.

The Capped Telecommunication Index added 0.30 percent, as Rogers Communication (RCI-B.TO) dipped 0.31 percent, TELUS Corp. (T.TO) added 0.03 percent, and BCE Inc. (BCE.TO) moved up 0.42 percent.

The Capped Industrials Index is up 0.01 percent. Canadian Pacific Railway (CP.TO) gained 0.85 percent and (CNR.TO) is gaining 1.41 percent. The company has recommended that its shareholders reject the unsolicited mini-tender offer made by TRC Capital Corp. to purchase up to 2,000,000 of its common shares.

Bombardier (BBD-A.TO) shed 3.05 percent. The company yesterday announced the appointment of John Di Bert as Senior Vice President and Chief Financial Officer, effective August 10, 2015.

Carmanah Technologies (CMH.TO) gained 3.84 percent. The company's Sabik GmbH subsidiary has been awarded a contract to provide a marking system for the Nordergründe offshore wind project.

On the economic front, a Labor Department report on Friday showed U.S. consumer price index climbed by 0.3 percent in June following a 0.4 percent increase in May, in line with economists' estimates.

In another upbeat sign for the housing market, a Commerce Department report on Friday showed housing starts to have jumped 9.8 percent to an annual rate of 1.174 million in June from the revised May estimate of 1.069 million. Economists expected housing starts to climb to a rate of 1.125 million from the 1.036 million originally reported for the previous month.

Building permits, an indicator of future housing demand, surged 7.4 percent to an annual rate of 1.343 million in June from the revised May rate of 1.125 million. Economists expected building permits to rise to an annual rate of 1.178 million from the 1.275 million originally reported for the previous month.

A report from the University of Michigan on Friday showed consumer sentiment in the U.S. to have pulled back in July, after reporting a substantial improvement in in the previous month. A preliminary reading on the consumer sentiment index for July came in at 93.3, down from the final June reading of 96.1. Economists expected the index to edge down to 96.0.

Eurozone construction output increased in May after falling in the previous month, figures from Eurostat showed Friday. Construction output climbed 0.3 percent month-over-month in May, reversing a 0.2 percent decrease in April, which was revised from a 0.3 percent hike reported earlier.

The leading economic index in the UK, which measures the future economic activity, decreased in May, results of a survey by the Conference Board showed Thursday. The Conference Board leading economic index fell 0.4 percent in May, following a 0.3 percent climb in April.