Canadian Stocks Have Slipped Into The Red -- Canadian Commentary

(RTTNews) - The Canadian stock market has slipped into negative territory Friday morning, adding to the losses of the previous two trading sessions. Nearly every sector is trading in the green this morning, with the notable exception of the heavyweight financial index. Mining stocks are also showing some slight weakness as commodity prices have come under pressure.

The majority of the European markets are trading in the red Friday, due to continued concerns over the situation in Greece. Eurozone finance ministers are meeting today to discuss the request made by Greece for a loan extension for up to six months. However, Germany rejected Greece's request for extension of its loan agreement yesterday, saying the Greek government is attempting to receive a bridge financing, without meeting the requirements of the program.

Markets in the United States are also negative this morning. Traders largely remain optimistic that a Greek deal will be completed, but the ongoing uncertainty about the situation in Greece is weighing on the markets. The lack of major U.S. economic data is also keeping some traders on the sidelines at the end of the trading week.

The benchmark S&P/TSX Composite Index is down 22.96 points or 0.15 percent at 15,157.37. The market has pulled back from an early high of 15,232.74.

On Thursday, the index closed down 32.42 points or 0.21 percent, at 15,180.33. The index scaled an intraday high of 15,211.81 and a low of 15,099.91.

The heavyweight Financial Index is the biggest drag on the market this morning, with a decrease of 0.87 percent. National Bank of Canada (NA.TO) is lower by 0.96 percent and Royal Bank of Canada (RY.TO) is declining by 1.35 percent. Bank of Montreal (BMO.TO) is losing 0.54 percent and Canadian Imperial Bank of Commerce (CM.TO) is decreasing by 1.15 percent. Toronto-Dominion Bank (TD.TO) is falling by 0.94 percent and Bank of Nova Scotia (BNS.TO) is weaker by 0.66 percent.

The Diversified Metal and Mining Index is also lower by 0.21 percent. Capstone Mining (CS.TO) is declining by 1.81 percent and Teck Resources (TCK-B.TO) is losing 0.87 percent.

First Quantum Minerals (FM.TO) is down 0.22 percent. The company reported a surge in fourth-quarter net earnings attributable to shareholders to $0.75 a share, from $0.22 a share last year.

HudBay Minerals (HBM.TO) is increasing by 0.95 percent and Finning International (FTT.TO) is rising by 3.43 percent.

The Energy Index is falling by 0.26 percent. Oil prices have remained around $50 per barrel after a weekly report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have jumped 7.7 million barrels in the week ended February 13, while analysts expected an increase of 3.1 million barrels.

Encana (ECA.TO) is falling by 0.06 percent and Suncor Energy (SU.TO) is losing 0.78 percent. Canadian Natural Resources (CNQ.TO) is down 0.47 percent and Canadian Oil Sands (COS.TO) is losing 0.90 percent. CrescentPoint Energy (CPG.TO) is lower by 0.06 percent. MEG Energy (MEG.TO) is sinking by 2.36 percent.

Cenovus Energy (CVE.TO) is higher by 0.63 percent and Vermilion Energy (VET.TO) is advancing by 0.24 percent. Talisman Energy (TLM.TO) is also increasing by 0.62 percent.

Bonterra Energy (BNE.TO) is down 0.36 percent. The company has entered into a $172 million agreement to acquire oil and gas assets in Pembina Cardium.

Enerplus (ERF.TO) is surging by 3.41 percent. The company reported fourth-quarter net income of C$ 0.74 per basic share, compared with C$0.15 per basic share last year. Analysts expected the company to earn C$0.21 per share.

Enbridge (ENB.TO) is up 0.49 percent. The company reported fourth quarter adjusted earnings of C$0.49 compared with C$0.44 per share a year ago. Analysts expected earnings of C$0.53 per share.

The Gold Index is climbing by 1.64 percent. Yamana Gold (YRI.TO) is rising by 1.63 percent and Goldcorp (G.TO) is advancing by 1.80 percent. IAMGOLD (IMG.TO) is increasing by 3.12 percent and Barrick Gold (ABX.TO) is adding 1.25 percent.

Eldorado Gold (ELD.TO) is climbing by 3.04 percent. The company reported a fourth quarter profit of $0.02 per share.

Centerra Gold (CG.TO) is gaining 0.69 percent. The company reported a fourth quarter net loss of C$0.05 per share, compared to the profit of C$0.44 per share last year. The company's Board also authorized a quarterly dividend of C$0.04 per share.

The Capped Materials Index is also gaining 0.17 percent. Franco-Nevada (FNV.TO) is up 0.25 percent and Agnico Eagle Mines (AEM.TO) is higher by 1.27 percent. Potash Corp. of Saskatchewan (POT.TO) is down 0.54 percent and Agrium (AGU.TO) is losing 0.66 percent.

The Health Care Index is rising by 1.41 percent. Valeant Pharmaceuticals International (VRX.TO) is gaining 2.43 percent and Catamaran (CCT.TO) is adding 0.83 percent.

Nuvo Research (NRI.TO) is up 2.50 percent. The company reported a fourth quarter loss of $0.56 per share, compared to the loss of $0.22 a year ago. Bombardier (BBD-A.TO) is down 2.69 percent. The company will issue C$750 million in equity.

Canadian Utilities (CU.TO) is rising by 0.98 percent. The company reported fourth quarter earnings of $151 million, compared to $117 million last year.

On the economic front, Canadian retail sales tumbled in the month of December, falling by 2.0 percent to C$42.08 billion, according to a report from Statistics Canada Friday morning. This was the steepest decline since April of 2010. Economists had been expecting a decrease of only 0.4 percent. Nine of eleven sectors showed declines, including gas station sales, which plunged by 7.4 percent. The 0.4 percent increase reported in November was unrevised.

Eurozone business activity accelerated for the third straight month to hit a seven-month high in February on stronger demand, raising hopes of recovery gaining strength, flash data from Markit Economics showed Friday. New order growth also prompted firms to raise their staffing levels at the fastest pace since 2011.

The composite output index rose to 53.5 in February from 52.6 in January. It was also above the expected score of 53.

Germany's private sector output grew at the strongest pace in seven months in February, flash data from Markit Economics showed Friday. The composite output index came in at 54.3 in February, up from 53.5 in January.

The French private sector expanded at the fastest rate in three-and-a-half years in February, flash data from Markit Economics showed Friday. The composite output index rose to 52.2 in February from 49.3 in January, more than the 49.8 reading expected by economists. This marked a forty-two month high.

Germany's producer prices in January declined at the fastest pace since early 2010, exceeding economists' prediction, figures from Destatis showed Friday. The prouder price index dropped 2.2 percent year-on-year in January, following a 1.7 percent fall in the previous month. Economists had forecast a 2.0 percent decline for the month.

The U.K. budget surplus hit a seven-year high in January on rising personal income tax, signaling that the government is set to achieve the target before the general election in May.

Meanwhile, retail sales declined slightly more-than-expected in January, marking the first fall in four months on weak food and clothing sales.

Net borrowing excluding public sector banks totaled -GBP 8.8 billion in January, an increase of 34.9 percent from last year, the Office for National Statistics said Friday. Nonetheless, the surplus was slightly below the GBP 9 billion predicted by economists.

Another report from the ONS showed that retail sales fell for the first time in four months in January. Sales including automotive fuel were down 0.3 percent from the previous month. Economists had forecast sales to drop 0.2 percent after a 0.2 percent rise in December.

In commodities, crude oil futures for March delivery are down $0.70 or 1.37percent at $50.46 a barrel.

Natural gas for March is up $0.126 or 4.45 percent at $2.96 per million btu.

Gold futures for April are down $1.10 or 0.09 percent at $1,206.50 an ounce.

Silver for March is down $0.086 or 0.53 percent at $16.295 an ounce.