TSX Lower On Renewed Economic Fears -- Canadian Commentary

(RTTNews) - Canadian stocks are lower Monday morning, with some disappointing economic data from China and the eurozone hurting sentiment.

Investors are also digesting a mixed batch of U.S. economic data, including reports showing an unexpected decrease in construction spending and an surprise increase in manufacturing activity.

Energy stocks are weak, tracking declining crude oil prices.

The benchmark S&P/TSX Composite Index is down 60.09 points or 0.41 percent at 14,553.23, after having edged up to 14,637.56 earlier.

On Friday, the index closed up 154.63 points or 1.07 percent at 14,613.32, after scaling a intraday high of 14,626.98 and a low of 14,507.55. For the week, the index gained 0.48 percent.

The Energy Index is down 1 percent. Canadian Natural Resources Limited (CNQ.TO), Crescent Point Energy Corp. (CPG.TO), Canadian Oil Sands Limited (COS.TO), Husky Energy Inc. (HSE.TO) and Talisman Energy Inc. (TLM.TO) are declining 1.2 to 2 percent.

The Capped Materials Index is down 0.5 percent. Potash Corporation of Saskatchewan Inc. (POT.TO), Agrium Inc. (AGU.TO) and Methanex Corporation (MX.TO) are down 1.2 to 2.6 percent.

Goldcorp Inc. (G.TO) is declining 2.6 percent, Barrick Gold Corporation (ABX.TO) is lower by 1.4 percent and First Quantum Minerals Ltd. (FM.TO) is down 1.5 percent.

Yamana Gold Inc. (YRI.TO0, Eldorado Corporation (ELD.TO), B2Gold Corp. (BTO.TO) and Detour Gold Corporation (DGC.TO) are lower by 0.6 to 1.5 percent.

Meanwhile, Kinross Gold Corporation (K.TO) is moving up 1.3 percent.

The Financial Index is down 0.23 percent. Among the big six banks, National Bank of Canada (NA.TO) is flat, while the rest are lower by 0.3 to 0.6 percent.

Manulife Financial Corporation (MFC.TO), Sun Life Financial Inc. (SLF.TO) and Power Corporation of Canada (POW.TO) are down 0.4 to 0.8 percent, while Fairfax Financial Holdings (FFH.TO) is declining 1.3 percent.

The Diversified Metals & Mining Index is little changed. Teck Resources (TCK.B.TO), Sherritt International Corporation (S.TO) and Major Drilling Group International Inc. (MDI.TO) are lower by 0.8 to 1.2 percent.

Meanwhile, Turquoise Hill Resources (TRQ.TO) is rising 3.5 percent and HudBay Minerals Inc. (HBM.TO) is adding 0.6 percent.

The Healthcare Index is up 1.4 percent. Valeant Pharmaceuticals International Inc. (VRX.To) is moving up over 2 percent and Catamaran Corporation (CCT.TO) is rising 1.75 percent, while Extendicare Inc. (EXE.TO) is up 0.4 percent.

The Consumer Staples Index is down over 1 percent. Loblaw Companies Limited (L.TO), Saputo Inc. (SAP.TO), Empire Company (EMP.A.TO) and Maple Leaf Foods (MFI.TO) are down 1 to 1.6 percent, while Cott Corporation (BCB.TO) is moving up over 2 percent.

Bombardier Inc. (BBD.B.TO) is rising more than 1 percent.

HSBC Bank Canada (HSB.PC.TO) Monday reported third-quarter profit of C$167 million, down from C$183 million a year ago. Basic earnings per share were C$0.32, compared with C$0.34 last year. The stock is modestly lower.

Touchstone Gold Limited (TCH.TO) has confirmed that it is in the late stages of negotiations and documentation regarding a possible investment in a technology company. The investment will be funded entirely from existing cash resources.

COGECO, Inc. (CGO.TO) reported fourth-quarter profit of $15.77 million or $0.94 per share, higher than $13.87 million or $0.82 per share in the prior-year quarter.

Duluth Metals Limited (DM.TO) said that copper mining company Antofagasta Plc. (ANFGY.PK,ANTO.L) has agreed to acquire it through a wholly owned subsidiary, all of the outstanding common shares of Duluth Metals by way of a friendly take-over bid or a plan of arrangement at a price of C$0.45 per share in cash. Duluth Metals Limited shares are at $0.395, up by a hefty 464 percent.

In commodities, crude oil futures for December delivery are down $0.45 or 0.56 percent at $80.09 a barrel.

Natural gas for December is up $0.144 or 3.71 percent at $4.017 per million btu.

Gold futures for December are down $2.10 or 0.17 percent at $1,169.50 an ounce.

Silver for December is down $0.037 or 0.23 percent at $16.069 an ounce. Meanwhile, copper is up marginally at $3.050 per pound.

A report released by the U.S. Commerce Department showed construction spending to have declined 0.4 percent to a seasonally adjusted annual rate of $950.9 billion in September from the revised August estimate of $955.2 billion. Economists had expected construction spending to increase by about 0.6 percent.

Data released by the Institute of Supply Management showed an unexpected acceleration in the pace of growth in U.S. manufacturing activity, with the index climbing to 59.0 in October, up from 56.6 in September. Economists had expected the index to dip to 56.0.

Data relesed by Markit Economics showed eurozone's manufacturing Purchasing Managers' Index to have risen to 50.6 in October, from a 14-month low of 50.3 in the previous month. The flash score was 50.7.

In Asia, China's manufacturing sector continued to expand as expected in October, with HSBC manufacturing purchasing managers' index came in at 50.4.

Meanwhile, China's non-manufacturing business activity expanded at a slower rate in October, data from the National Bureau of Statistics showed Monday. The non-manufacturing business activity index decreased to 53.8 in October from 54 in September. This indicated a slower rate of growth.