Canadian Stocks Are Down Again As Commodity Prices Fall -- Canadian Commentary

(RTTNews) - The Canadian stock market is falling in early trade Wednesday, extending its losses from the previous session. Energy, gold and mining stocks are among the weakest performers as commodity prices decline.

Crude oil prices have turned sharply lower on lingering concerns about the global supply glut. Saudi Arabia won't change its current production policy, it was reported early today, meaning they will continue pumping oil at a furious pace in order to maintain market share.

The majority of the European markets are trading in the red Wednesday. There had been more of a mixed performance in early trade, but now most have slipped into negative territory as commodity weakness weighs on investor sentiment.

Markets in the United States are also trading modestly to the downside this morning. The weakness of commodity prices is having a negative impact in light trading action. Many traders remain away from their desks ahead of the upcoming New Year's Day holiday.

An indicator of future home sales unexpectedly declined in November, indicating the third decline in the last four months. The National Association of Realtors' pending home sales index fell 0.9 percent in November. Economists had expected an increase for the month.

The benchmark S&P/TSX Composite Index is down 67.63 points or 0.51 percent at 13,178.12.

On Tuesday, the index closed down 64.05 points or 0.48 percent, at 13,309.82. The index scaled an intraday high of 13,315.24 and a low of 13,193.57.

The Gold Index is falling 1.94 percent. Barrick Gold (ABX.TO) is declining 2.76 percent and Eldorado Gold (ELD.TO) is falling 2.35 percent. Royal Gold (RGL.TO) is losing 2.86 percent and IAMGOLD (IMG.TO) is surrendering 1 percent. Yamana Gold (YRI.TO) is lower by 1.89 percent and Goldcorp (G.TO) is decreasing 2.28 percent.

The Capped Materials Index is also down 1.11 percent. Franco-Nevada (FNV.TO) is falling 1.85 percent and Agnico Eagle Mines (AEM.TO) is down 2.61 percent. Silver Wheaton (SLW.TO) is weakening by 0.93 percent and Agrium (AGU.TO) is losing 0.26 percent. Potash Corp. of Saskatchewan (POT.TO) is decreasing 0.04 percent

The Energy Index is decreasing 1.54 percent. Cenovus Energy (CVE.TO) is declining 1.58 percent and Suncor Energy (SU.TO) is down 0.63 percent. Husky Energy (HSE.TO) is weakening by 1.30 percent and Enbridge (ENB.TO) is losing 1.63 percent. Canadian Oil Sands (COS.TO) is falling 1.30 percent and Crescent Point Energy (CPG.TO) is dropping 2.46 percent. Imperial Oil (IMO.TO) is surrendering 0.72 percent and Pacific Exploration & Production (PRE.TO) is dipping 1.24 percent.

The Diversified Metal and Mining Index is declining 1.12 percent. First Quantum Minerals (FM.TO) is falling 2.90 percent and HudBay Minerals (HBM.TO) is losing 0.73 percent. Lundin Mining (LUN.TO) is decreasing 0.26 percent and Capstone Mining (CS.TO) is surrendering 3.33 percent.

The Capped Telecommunication Services Index is losing 0.41 percent. Manitoba Telecom Services (MBT.TO) is falling 0.72 percent and BCE (BCE.TO) is decreasing 0.47 percent. TELUS (T.TO) is declining 0.36 percent.

The heavyweight Financial Index is falling 0.33 percent. Royal Bank of Canada (RY.TO) is decreasing 0.49 percent and Toronto-Dominion Bank (TD.TO) is down 0.45 percent. Bank of Montreal (BMO.TO) is lower by 0.19 percent and Bank of Nova Scotia (BNS.TO) is declining 0.36 percent. Canadian Imperial Bank of Commerce (CM.TO) is also losing 0.52 percent.

The Capped Industrials Index is lower by 0.11 percent. CAE (CAE.TO) is falling 0.19 percent and AutoCanada (ACQ.TO) is losing 2.80 percent. Canadian Pacific Railway (CP.TO) is decreasing 0.09 percent and Finning International (FTT.TO) is down 0.21 percent. Air Canada (AC.TO) is also dipping 0.20 percent.

The Capped Health Care Index is climbing 0.53 percent. Extendicare (EXE.TO) is gaining 1.47 percent and Valeant Pharmaceuticals International (VRX.TO) is rising 0.81 percent. The stock is attempting to stabilize following a recent pull back caused by concerns over the health of its CEO.

The Capped Information Technology Index is up 0.09 percent. BlackBerry (BB.TO) is climbing 0.54 percent and Descartes Systems Group (DSG.TO) is rising 0.88 percent. Avigilon (AVO.TO) is also increasing 3.36 percent.

On the economic front, the State Administration of Foreign Exchange on Wednesday revised China's balance of payment figures for the third quarter. The current account surplus for July to September period was revised to $60.3 billion from $63.4 billion.

U.K. house prices increased the most in eight months in December as a strong labor market underpinned buyer demand amid shortage of properties.

House prices grew 0.8 percent in December, faster than the 0.1 percent gain seen in November, data from the Nationwide Building Society showed Wednesday. This was the fastest growth since April, when prices climbed 1 percent and also exceeded an expected growth of 0.4 percent.

England/Wales house price growth accelerated in November to the highest level in eight months, figures from Land Registry showed Wednesday. House prices climbed 5.6 percent year-over-year in November, faster than the 5.2 percent hike in the preceding month.

In commodities, crude oil futures for January delivery are down $1.22 or 3.22 percent at $36.65 a barrel.

Natural gas for January is down 0.157 or 6.62 percent at $2.213 per million btu.

Gold futures for February are down $7.70 or 0.72 percent at $1,060.30 an ounce.

Silver for March is down $0.108 or 0.78 percent at $13.82 an ounce.