Canadian Stocks Are Down As Crude Oil Prices Retreat -- Canadian Commentary

(RTTNews) - The Canadian stock market is losing ground in early trade Thursday, adding to the losses of the previous session. Crude oil prices are pulling back this morning, after reaching a 10-month high above $51 a barrel on Wednesday. The majority of the Canadian sectors are trading in the red this morning, with the largest losses among the mining, energy and financial stocks.

Markets in Europe are extending their losses from the previous session on Thursday. Concerns over slowing global growth and increasing uncertainty surrounding the upcoming UK-EU referendum are having a negative impact on investor sentiment. The recent strength in the Euro, as a June rate hike from the Federal Reserve appears unlikely, is also contributing to the negative mood.

Markets in the United States are trading slightly to the downside Thursday morning. Investors are taking an opportunity to lock in some profits after yesterday's gained brought the S&P 500 to its highest closing level in well over ten months. The pull back in crude oil prices is also contributing to the early weakness.

The benchmark S&P/TSX Composite Index is down 95.99 points or 0.67 percent at 14,217.11.

On Wednesday, the index closed down 52.51 points or 0.37 percent, at 14,313.10. The index scaled an intraday high of 14,450.91 and a low of 14,289.66.

The Diversified Metal and Mining Index is declining 3.91 percent. First Quantum Minerals (FM.TO) is falling 6.13 percent and HudBay Minerals (HBM.TO) is decreasing 1.42 percent. Lundin Mining (LUN.TO) is weakening by 2.70 percent and Capstone Mining (CS.TO) is losing 2.78 percent. Teck Resources (TCK-B.TO) is dropping 4.02 percent.

The Energy Index is down 1.13 percent. Crude oil prices are retreating from the 10-month high reached during yesterday's session. Analysts say there is not much room for further gains barring significant news from the Middle East.

Cenovus Energy (CVE.TO) is falling 1.10 percent and Canadian Natural Resources (CNQ.TO) is losing 1.32 percent. Suncor Energy (SU.TO) is declining 0.68 percent and Enbridge (ENB.TO) is slipping 0.31 percent. Crescent Point Energy (CPG.TO) is decreasing 2.04 percent and Husky Energy (HSE.TO) is surrendering 1.05 percent. Encana (ECA.TO) is also weakening by 0.98 percent.

The heavyweight Financial Index is decreasing 0.99 percent. Canadian Imperial Bank of Commerce (CM.TO) is falling 1.13 percent and National Bank of Canada (NA.TO) is weakening by 1.09 percent. Bank of Nova Scotia (BNS.TO) is declining 0.85 percent and Royal Bank of Canada (RY.TO) is down 1.20 percent. Toronto-Dominion Bank (TD.TO) is losing 0.89 percent and Bank of Montreal (BMO.TO) is surrendering 0.74 percent.

The Capped Industrials Index is dropping 0.72 percent. AutoCanada (ACQ.TO) is falling 1.69 percent and Finning International (FTT.TO) is weakening by 0.70 percent. Canadian Pacific Railway (CP.TO) is losing 1.12 percent and Canadian National Railway (CNR.TO) is down 1.08 percent.

WestJet Airlines (WJA.TO) is declining 0.90 percent. The company reported a May load factor of 81.4 percent, compared to 77.2 percent a year ago.

The Capped Telecommunication Services Index is down 0.43 percent. Rogers Communication (RCI-B.TO) is falling 0.66 percent and TELUS (T.TO) is losing 0.61 percent. BCE (BCE.TO) is decreasing 0.36 percent.

The Capped Information Technology Index is falling 0.35 percent. Constellation Software (CSU.TO) is down 0.52 percent and Avigilon (AVO.TO) is losing 0.64 percent. Sierra Wireless (SW.TO) is decreasing 0.63 percent.

BlackBerry (BB.TO) is declining 1.37 percent. A CBC News investigation revealed has helped intercept user data — including BBM messages — to help in hundreds of police investigations in dozens of countries.

The Capped Materials Index is down 0.38 percent. Agrium (AGU.TO) is dropping 1.34 percent and Potash Corp. of Saskatchewan (POT.TO) is losing 2.51 percent.

The Capped Healthcare Index is rising 0.89 percent. Concordia Healthcare (CXR.TO) is advancing 2.46 percent and Valeant Pharmaceuticals International (VRX.TO) is up 4.04 percent.

The Gold Index is climbing 0.68 percent. Gold prices are slightly higher this morning amid weakness in the U.S. dollar.

Barrick Gold (ABX.TO) is rising 1.35 percent and B2Gold (BTO.TO) is higher by 0.76 percent. Yamana Gold (YRI.TO) is increasing 1.36 percent and IAMGOLD (IMG.TO) is climbing 0.60 percent. Royal Gold (RGL.TO) is gaining 0.29 percent.

Centerra (CG.TO) and Kinross (K.TO) are among firms mulling bid for Thompson Creek's (TCM.TO) B.C. site, according to the Globe and Mail. Kinross Gold is dipping 0.15 percent, but Centerra is climbing 1.44 percent. Thompson Creek is advancing 2.04 percent.

Transat (TRZ.TO) reported a net loss of 68 cents per share compare to an a year-earlier profit of $24.7 million or 64 cents per share. The flier cited a challenging travel environment. The stock is now down 2.02 percent.

On the economic front, a report from Statistics Canada showed that Canadian new home prices rose 0.3 percent in April, largely due to strength in the greater Toronto region. Economists had expected an increase of 0.2 percent.

China's inflation eased unexpectedly in May on food inflation and producer prices dropped at a slower pace, providing room for further stimulus to prop up growth, if needed.

The National Bureau of Statistics reported that consumer prices gained 2 percent in May from last year, while it was forecast to remain unchanged at 2.3 percent seen in April.

Another report from the NBS showed that producer prices dropped at a slower pace of 2.8 percent following a 3.4 percent decrease. Prices were expected to decline 3.2 percent. The PPI has been falling for more than four years.

The German trade surplus hit a monthly record in April despite a fall in exports to countries outside EU, data from Destatis showed Thursday.

Overall exports did not change from March after rising 1.9 percent. Economists had forecast a 0.9 percent drop for April.

Meanwhile, imports fell 0.2 percent on a monthly basis compared to March's 2.3 percent decline and a 1.2 percent rise economists had forecast.

Consequently, the trade surplus rose slightly to a record EUR 23.9 billion from EUR 23.7 billion in the previous month.

The U.K. visible trade deficit narrowed slightly in April, data from the Office for National Statistics showed Thursday. The deficit on trade in goods decreased to GBP 10.5 billion from GBP 10.6 billion in March. It was forecast to widen to GBP 11 billion.

The U.K. economy grew at a faster pace in three months to May, data from the National Institute of Economic and Social Research showed Wednesday. The think tank said the gross domestic product grew 0.5 percent in the three months to May, faster than the 0.4 percent expansion seen in three months to April.

The house price balance in the United Kingdom fell to 19 percent in May, the Royal Institution of Chartered Surveyors said on Thursday. That was well shy of forecasts for 35 percent and down sharply from 39 percent from the April reading.

The number of people filing first-time unemployment benefits unexpected dipped last week, according to new government statistics released on Thursday. The U.S. Labor Department revealed that initial jobless claims came in at 264,000 for the week ended June 4. This was down 4,000 from the previous week's revised level of 268,000.

Economists had expected the number to tick up slightly from the previous week. Experts were generally looking for a level around 270,000.

Wholesale inventories rose significantly more than expected in April, according to new government statistics released Thursday. A report from the U.S. Commerce Department showed that wholesale inventories advanced 0.6 percent in April after rising by a revised 0.2 percent in March.

Economists had expected inventories to rise by about 0.1 percent compared to the 0.1 percent advance originally reported for the previous month.

In commodities, crude oil futures for July delivery are down 0.67 or 1.31 percent at $50.56 a barrel.

Natural gas for July is down 0.009 or 0.36 percent at $2.459 per million btu.

Gold futures for August are up $5.20 or 0.41 percent at $1,267.50 an ounce.

Silver for July is up $0.165 or 0.97 percent at $17.15 an ounce.