TSX Plunges As Oil Sinks, Ends At 2-1/2 Year Low -- Canadian Commentary

(RTTNews) - Canadian stocks plummeted to end at a 2-1/2-year low on Monday, tracking sharply declining global equity markets, under pressure from sinking oil prices on renewed supply glut worries and concerns that Greece may be on the verge of exiting the eurozone. This was the worst drop since June 2013.

U.S. markets closed sharply lower, as stocks tumbled with plummeting crude oil prices. The Dow Jones Industrial Average posted its worst daily loss in three months, dropping 1.9 percent and the Nasdaq shed 1.5 percent.

Investors also continued to monitor the developments in Europe, with increasing concerns that Greece could leave the eurozone in the aftermath of general elections slated for January 25.

Observers believe that the debt-ridden country could come under the control of the staunch anti-austerity party Syrizia led by Alexis Tsipras, and strongly opposed to the stringent financial measures taken by the government on cue from the European Union and the International Monetary Fund.

A number of important U.S. economic reports are also on the horizon this week, including the FOMC minutes and the U.S. jobs report for December.

The benchmark S&P/TSX Composite Index closed Monday at 14,392.70, down 360.95 points or 2.45 percent. The index scaled an intraday high of 14,709.02 and a low of 14,339.50.

On Friday the index closed higher by 121.21 points or 0.83 percent, at 14,753.65, with an intraday high of 14,756.30 and a low of 14,631.35.

Crude oil ended lower with continued worries over a global supply glut, the lowest close for a most-active contract since April 2009.

Russian oil production rose 0.3 percent in December to a post-Soviet record of 10.667 million barrels a day, according to preliminary data from the Kremlin's energy ministry.

Meanwhile, Saudi Arabia on Monday slashed its monthly oil prices for European consumers and further trimmed prices for U.S. refiners. Nonetheless, Saudi Arabia increased its rates for Asia.

The Energy Index plunged 6.50 percent, with U.S. crude oil futures for February delivery tumbling $2.65 or 5.0 percent to close at $50.04 a barrel on the Nymex Monday.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dived 6.89 percent, Suncor Energy Inc. (SU.TO) fell 4.36 percent, and Canadian Oil Sands Limited (COS.TO) plunged 13.55 percent.

Pacific Rubiales Energy Corp. (PRE.TO) plunged 18.89 percent, Encana Corp. (ECA.TO) fell 5.17 percent, Crescent Point Energy Corp. (CPG.TO) plummeted 9.07 percent, and Cenovus Energy Inc. (CVE.TO) surrendered 5.25 percent.

Gold futures ended sharply higher with investors seeking the safe haven of the precious metal on concerns over the Greek crisis and fears of a global economic slowdown following crude oil's plunge.

The Global Gold Index gained 2.59 percent, with gold for February delivery adding $17.80 or 1.5 percent to settle at $2,204.00 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Kinross Gold Corp. (K.TO) added 1.75 percent, Agnico Eagle Mines Limited (AEM.TO) gained 1.51 percent, Goldcorp Inc. (G.TO) moved up 0.41 percent, Eldorado Gold Corp. (ELD.TO) jumped 4.78 percent, and Franco-Nevada Corp. (FNV.TO) advanced 5.25 percent.

However, Barrick Gold Corp .(ABX.TO) slipped 0.39 percent.

The Capped Materials Index dropped 0.35 percent, mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.34 percent.

The heavyweight Financial Index dived 2.10 percent, as National Bank of Canada (NA.TO) fell 4.90 percent, Toronto-Dominion Bank (TD.TO) dropped 2.32 percent, and Bank of Nova Scotia (BNS.TO) dropped 2.03 percent.

Royal Bank of Canada (RY.TO) dived 1.95 percent, while Bank of Montreal (BMO.TO) surrendered 2.23 percent. Canadian Imperial Bank of Commerce (CM.TO) fell 1.97 percent.

The Healthcare Index lost 1.29 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) declining 0.15 percent.

Catamaran Corp. (CCT.TO) dropped 3.39 percent, after completion of the acquisition of Salveo Specialty Pharmacy..

The Diversified Metals & Mining Index plunged 4.35 percent, as Teck Resources Limited (TCK.B.TO) dropped 3.59 percent, First Quantum Minerals Ltd. (FM.TO) plunged 8.33 percent, and Finning International Inc. (FTT.TO) lost 3.96 percent. Lundin Mining Corp. (LUN.TO) declined 4.12 percent.

The Capped Industrials Index dived 2.90 percent, with Bombardier Inc. (BBD.B.TO) dropping 2.14 percent.

The Information Technology Index fell 1.38 percent, although BlackBerry Ltd. (BB.TO) dropped only 0.71 percent.

The Capped Telecommunication Index surrendered 1.09 percent with BCE Inc. (BCE.TO) shedding 1.17 percent and Rogers Communications Inc. (RCI.A.TO) dropped 1.60 percent.

NeuLion Inc. (NLN.TO) jumped 4.48 percent after it agreed to acquire DivX LLC for $62.5 million.

In economic news, eurozone investor confidence unexpectedly rose for a third straight month, moving into the positive territory led by Germany, data from Sentix showed Monday. The investor confidence index climbed to 0.9 from -2.5 in December. Economists had forecast an improvement in the measure to -1.

Germany's inflation slowed more-than-expected in December, preliminary figures from Destatis showed Monday. The harmonized index of consumer prices edged up 0.1 percent annually following a 0.5 percent gain in the previous month. Economists expected the index to increase 0.2 percent. This was the lowest reading since October 2009, when prices fell 0.1 percent.

Elsewhere in Europe, the strength of recovery in the U.K. construction sector moderated to its lowest since July 2013, data from Markit Economics showed Monday. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index for the construction sector fell more-than-expected to 57.6 in December from 59.4 in November. The score was forecast to fall to 59 in December.

Traders are focused on the outlook for commodities this week amid the release of a slew of first-tier economic data. December's jobs report, the results of the Institute for Supply Management's non-manufacturing survey for December, the minutes of December 17th FOMC meeting and some Fed speeches are on the calendar.