TSX Ends Lower On Global Cues, Stimulus Concerns - Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Thursday, taking cue from the U.S. equity markets, amid weak commodities with investors mulling over the U.S. Federal Reserve's monetary policy revealed yesterday. Coupled with some disappointing earnings news from some heavyweights, investor sentiments deteriorated on speculations the Federal Reserve may begin tapering its stimulus program sooner rather than later. Almost all major sub-indices of the main index ended in the red.

Asian stocks settled lower, with Japanese shares falling sharply on negative cues from Wall Street and the Bank of Japan's decision to hold off on additional easing measures. Meanwhile, European markets ended broadly higher amid a mixed batch of macroeconomic data out of Europe.

The S&P/TSX Composite Index closed Thursday at 13,361.26, down 94.07 points or 0.70 percent. The index touched an intraday high of 13,463.73 and a low of 13,361.26.

The Diversified Metals & Mining Index dropped 1.23 percent, with First Quantum Minerals Ltd. (FM.TO) gaining 2.33 percent, Osisko Mining Corp. (OSK.TO) down 5.74 percent, and Lundin Mining Corp. (LUN.TO) down 0.21 percent. Teck Resources (TCK_B.TO) plummeted 4.81 percent.

The Capped Materials Index dived 2.95 percent mostly on gold stocks, with Potash Corporation of Saskatchewan Inc.(POT.TO) shedding 1.40 percent.

The Global Gold Index plummeted 4.30 percent, with gold futures for December delivery, the most actively traded contract, plunging $25.60 or 1.9 percent to close at $1,323.70 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) shed 3.45 percent, while Goldcorp Inc. (G.TO) dropped 3.87 percent. Kinross Gold Corp. (K.TO) dived 5.36 percent, while Eldorado Gold Corp. (ELD.TO) plummeted 5.13 percent. B2Gold Corp. (BTO.TO) shed 4.09 percent

Barrick Gold Corp. (ABX.TO) plunged 5.89 percent after reporting a third-quarter profit that declined to $172 million or $0.17 per share from $649 million or $0.65 per share last year. Adjusted net earnings slipped to $577 million or $0.58 per share from $880 million or $0.88 per share last year. Analysts expected the company to report earnings of $0.51 per share.

Eldorado Gold Corp. (ELD.TO) shed 4.72 percent on news that its unit Eldorado Gold Coöperatief UA will acquire all of the outstanding shares of Glory Resources Ltd not already owned by Eldorado for about A$30.5 million. Eldorado currently owns 19.9 percent of the shares in Glory.

Oil prices were under pressure with the dollar trading higher against a few major currencies, coupled with the increased supply scenario after the Energy Information Administration yesterday said crude oil stockpiles rose more than expected last week.

The Energy Index dipped 0.32 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, dropping $0.39 or 0.4 percent to close at $96.38 a barrel Thursday on the Nymex.

Among energy stocks, Imperial Oil Limited (IMO.TO) shed 0.04 percent, while Enbridge Inc. (ENB.TO) gathered 0.80 percent. Canadian Natural Resources Limited (CNQ.TO) dropped 0.60 percent, while Encana Corp. (ECA.TO) slipped 1.37 percent.

Suncor Energy (SU.TO) edged down 0.26 percent after reporting third quarter operating earnings of C$1.426 billion or C$0.95 per common share, up from C$1.292 billion or C$0.84 per common share in the prior year. Analysts expected earnings of C$0.87 per share for the quarter.

The Financial Index slipped 0.10 percent with Bank of Montreal (BMO.TO) down 0.27 percent, while Manulife Financial Corp. (MFC.TO) dropped 1.02 percent. The Bank of Nova Scotia (BNS.TO) slipped 0.20 percent, while Toronto-Dominion Bank (TD.TO) improved 0.10 percent. National Bank of Canada (NA.TO) rose 0.80 percent, while Royal Bank of Canada (RY.TO) shed 0.28 percent.

The Information Technology Index lost 1.64 percent, with smartphone maker BlackBerry Limited (BB.TO) down 4.08 percent.

The Capped Industrials Index declined 0.84 percent, with Air Canada (AC.B.TO) gaining 4.0 percent, while Bombardier Inc. (BBD.A.TO, BBD.B.TO) took a hard hit, after the aerospace and transportation company plunged 10.23 percent on some soft third-quarter earnings.

Bombardier reported a third-quarter net income of $147 million or $0.08 per share, down from $172 million or $0.09 per share in the year ago quarter. On an adjusted basis, net income amounted to $165 million or $0.09 per share, compared to $173 million or $0.09 per share in the same period last year.

Business software provider OpenText Corp. (OTC.TO) fell 3.32 percent reported an improved first-quarter net income of $30.6 million or $0.52 per share compared to $19.4 million or $0.33 per share last year. Adjusted earnings rose to $1.37 per share from $1.31 per share last year. Analysts expected earnings of $1.30 per share for the quarter.

In economic news, Statistics Canada said real gross domestic product rose for a second month, adding 0.3 percent in August, after increasing 0.6 percent in July.

In economic news from the U.S., the Labor Department said initial jobless claims dipped to 340,000, a decrease of 10,000 from the previous week's unrevised figure of 350,000. Economists had expected jobless claims to fall to 335,000.

Chicago-area business activity unexpectedly grew at a substantially accelerated rate in October, a report from MNI Indicators showed Thursday. The Chicago Business Barometer jumped to 65.9 in October from 55.7 in September, with a reading above 50 indicating growth in business activity. Economists expected the index to edge down to 55.0. The index rose for the fourth straight month and is at its highest level since March 2011.

Eurozone inflation reached a four-year low in October driven by the strength of the euro, while the unemployment rate remained at a record high in September, suggesting additional measures are needed to preserve the recovery, official data showed Thursday. Eurozone inflation dropped to 0.7 percent in October, the lowest rate since November 2009, flash estimate published by Eurostat showed. The rate was expected to stay unchanged at 1.1 percent in October.

Elsewhere, Germany's forward-looking consumer confidence index declined unexpectedly heading into November, a survey by market research group GfK revealed. The confidence index edged down to 7 in November from 7.1 in October. Economists expected an increase to 7.2.

Germany's retail sales unexpectedly declined for a second straight month in September, data released by Destatis showed on. Retail sales dropped a calendar-and-seasonally-adjusted 0.4 percent month-on-month, while economists' consensus was a 0.4 percent gain. In August, sales fell 0.2 percent.

Meanwhile, eurozone inflation slowed unexpectedly in October largely due to a notable fall in energy prices, official data showed. Inflation fell to 0.7 percent in October from 1.1 percent in September, flash estimate published by Eurostat revealed. The rate was expected to stay unchanged at 1.1 percent in October.