TSX Ends Sharply Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks plunged to end sharply lower on Wednesday, on some disappointing domestic data with building permits plunged in May, while tracking declining U.S. equity markets. Concerns over Greece and the sharp drop in the Chinese stock markets also weighed on investor sentiment.

All major sectors of the main index ended in the red, led by sharp declines in energy, mining, financial and gold stocks.

Meanwhile, minutes of the June U.S. Federal Reserve meet showed most Fed members were not ready to raise interest rates. Members wanted more data to confirm "economic growth was sufficiently strong and labor market conditions had firmed enough to return inflation to the Committee's longer-run objective over the medium term" according to the minutes.

The Fed seemed cautious about the prospects for robust economic growth this year.

Members were particularly concerned "that a failure of Greece and its official creditors to resolve their differences could result in disruptions in financial markets in the euro area, with possible spillover effects on the United States," the minutes said.

The majority of the European markets ended in the green on optimism of a Greek deal. Eurozone leaders have set a Sunday deadline for Greece to submit a new plan for financial assistance. Greek Prime Minister Alexis Tsipras failed to present EU leaders with a detailed reform blueprint at a meeting of finance ministers on Tuesday.

Markets in the United States ended in the red, after trading was suspended with the New York Stock Exchange down for about 3-1/2 hours, indicated as some technical glitch. Investors continued to focus on Greece, but were more concerned with the 5.9 percent drop in the Chinese stock market, a four-month low despite a series of market-stabilizing measures by authorities.

The benchmark S&P/TSX Composite Index closed Wednesday at 14,412.07, down 212.43 points or 1.45 percent. The index scaled an intraday high of 14,599.99 and a low of 14,379.92.

On Tuesday, the index closed up 30.93 points or 0.21 percent, at 14,624.50. The index scaled an intraday high of 14,625.11 and a low of 14,389.10.

Crude oil futures ended sharply lower on renewed fears of a supply glut after official data from the Energy Information Administration showed crude stockpiles in the U.S. to have increased more than expected last week.

A weekly report from the U.S. Energy Information Administration said U.S. crude oil inventories increased 0.4 million barrels in the week ended July 3, while analysts expected stocks to decline 1.1 million barrels. The report showed total U.S. crude oil inventories at 465.8 million barrels end last week.

Data from the oil and gas industry trade group American Petroleum Institute late Tuesday showed U.S. crude oil stocks to have risen by 0.96 million barrels last week.

The Energy Index shed 2.19 percent, with U.S. crude oil futures for August delivery dropping $0.68 or 1.3 percent, to settle at $51.65 a barrel on the New York Mercantile Exchange Wednesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 1.46 percent, while Canadian Natural Resources Limited (CNQ.TO) fell 1.61 percent. Crescent Point Energy Corp. (CPG.TO) declined 2.85 percent, while Encana Corp. (ECA.TO) plunged 5.44 percent.

Cenovus Energy Inc. (CVE.TO) fell 2.71 percent, Canadian Oil Sands (COS.TO) shed 2.44 percent, Pacific Rubiales Energy (PRE.TO) surrendered 2.78 percent and Enbridge (ENB.TO) dropped 0.65 percent.

Gold futures ended higher after the dollar weakened against some major currencies and global equity markets declined, even as talks between Greece and the Eurogroup appeared to be making little progress.

The Gold Index fell 0.20 percent, although gold for August delivery added $10.90 or 1.0 percent, to settle at $1,163.50 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, Goldcorp Inc. (G.TO) gained 1.00 percent, Barrick Gold Corp. (ABX.TO) added 0.15 percent, and IAMGOLD Corp. (IMG.TO) slipped 1.65 percent.

The Capped Materials Index fell 1.34 percent, as Agrium Inc. (AGU.TO) slid 1.77 percent and Agnico Eagle Mines Limited (AEM.TO) gained 0.55 percent.

Potash Corp. of Saskatchewan Inc. (POT.TO) dived 3.05 percent, on reports that the company is open to increasing its takeover bid for Germany's K+S.

The Diversified Metals & Mining Index plunged 3.01 percent, as First Quantum Minerals Ltd. (FM.TO) shed 1.93 percent and Teck Resources Limited (TCK.B.TO) plunged 6.28 percent. HudBay Minerals (HBM.TO) shed 3.07 percent, while Sherritt International (S.TO) slipped 0.98 percent.

The heavyweight Financial Index dropped 1.13 percent, as Royal Bank of Canada (RY.TO) fell 1.11 percent, National Bank of Canada (NA.TO) declined 1.15 percent, and Bank of Montreal (BMO.TO) surrendered 0.90 percent.

Toronto-Dominion Bank (TD.TO) fell 1.30 percent, Bank of Nova Scotia (BNS.TO) shed 1.01 percent, and Canadian Imperial Bank of Commerce (CM.TO) dropped 1.42 percent.

The Capped Health Care Index fell 1.37 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 1.08 percent, Concordia Healthcare Corp. (CXR.TO) shed 2.92 percent, and Catamaran (CCT.TO) inched up 0.09 percent.

The Capped Industrials Index surrendered 2.07 percent, as Bombardier Inc. (BBD-A.TO) plunged 4.39 percent and Finning International Inc. (FTT.TO) fell 2.01 percent. Canadian National Railway (CNR.TO) fell 1.60 percent, while Canadian Pacific Railway (CP.TO) declined 2.90 percent. Air Canada (AC.TO) dropped 2.36 percent.

WestJet Airlines Ltd. (WJA.TO) plunged 6.17 percent, after reporting a June load factor of 76.9 percent, down 0.5 points from 77.4 percent reported a year ago.

The Information Technology Index dived 2.02 percent, as BlackBerry Inc. (BB.TO) dived 3.36 percent, Sierra Wireless, Inc. (SW.TO) plunged 3.82 percent, and Descartes Systems Group Inc. (DSG.TO) dipped 0.25 percent.

The Capped Telecommunication Index fell 0.84 percent, as TELUS Corp. (T.TO) shed 0.66 percent, BCE Inc. (BCE.TO) slipped 1.10 percent, Manitoba Telecom Services (MBT.TO) dropped 0.51 percent, and Rogers Communication (RCI-B.TO) surrendered 1.06 percent.

Resverlogix Corp. (RVX.TO) gained 1.00 percent after announcing the closure of a license agreement and formally entering into a definitive stock purchase agreement with Shenzhen Hepalink Pharmaceutical.

On the economic front, data from Statistics Canada showed that the total value of building permits fell 14.5 percent to C$6.7 billion in May, compared to a revised 12.1 percent in April. Economists were forecasting a decline of 5.0 percent.

Consumer credit in the U.S. increased less than expected in May, a Federal Reserve report showed Wednesday. Consumer credit in May rose by $16.1 billion following an upwardly revised $21.4 billion jump in April. Economists expected consumer credit to climb by $18.5 billion compared to the $20.5 billion increase originally reported for the previous month.

U.K. house prices grew at the fastest pace in nine months in June, data from Lloyds Banking Group's Halifax division showed Wednesday. House prices advanced 9.6 percent year-on-year in three months to June, a similar rate of growth was last seen in September 2014. Economists had forecast the rate to ease to 8.3 percent from 8.6 percent in three months to May.

Permanent job placements in the UK increased at the slowest pace in over two years in June, the Report on Jobs compiled by the Recruitment and Employment Confederation and KPMG showed Wednesday. The number of people placed in permanent jobs rose again in June, but the rate of expansion eased to the slowest in 25 months.

Shop prices in the United Kingdom were down 1.3 percent on year in June, the British Retail Consortium said on Wednesday, following the 1.9 percent decline in May. Food prices eased 0.4 percent in June, the data showed, while non-food prices dropped almost 2.0 percent.