Canadian Stocks Are Falling On Global Cues -- Canadian Commentary

(RTTNews) - The Canadian stock market is losing ground in early trade Friday, after it snapped a 2-session losing streak yesterday. Global economic concerns are weighing on the market at the end of the trading week. Chinese shares had their worst week in 6 years, while Europe continues to wait for a resolution to the Greek debt crisis.

The majority of the European markets are positive Friday, as investors hope for a last minute Greek deal. Eurozone finance ministers are set to hold an emergency meeting on Monday, after yesterday's meeting ended without a deal. Monday's meeting could be the deciding one for Greece's future with euro. Greece faces a EUR 1.6 billion payment to the International Monetary Fund on June 30.

Markets in the United States are under pressure Friday morning. The pull back has been at least partially attributed to profit taking, following yesterday's strong rally. Concerns over Greece and a lack of U.S. economic data are also contributing to the weakness.

The benchmark S&P/TSX Composite Index is down 61.90 points or 0.42 percent at 14,708.74.

On Thursday, the index closed up 37.66 points or 0.26 percent, at 14,770.64. The index scaled an intraday high of 14,781.45 and a low of 14,685.15.

The Diversified Metal and Mining Index is dropping by 1.37 percent. Sherritt International (S.TO) is losing 0.45 percent and Lundin Mining (LUN.TO) is down 0.37 percent. First Quantum Minerals (FM.TO) is decreasing by 2.24 percent and HudBay Mineral (HBM.TO) is falling by 2.36 percent.

The Capped Materials Index is down 0.41 percent. Silver Wheaton (SLW.TO) is losing 1.04 percent and Agrium (AGU.TO) is declining by 1.05 percent. Potash Corp. of Saskatchewan (POT.TO) is also falling by 1.08 percent.

The Energy Index is decreasing by 0.61 percent. Crude oil prices turned lower Friday morning, unable to sustain any direction throughout the week. Traders are unsure about the outlook for oil amid a murky supply picture and concerns about global demand.

Suncor Energy (SU.TO) is falling by 0.21 percent and Canadian Oil Sands (COS.TO) is down 1.95 percent. Canadian Natural Resources (CNQ.TO) is weakening by 1.22 percent and Crescent Point Energy (CPG.TO) is surrendering 1.28 percent.

Enbridge (ENB.TO) is rising by 2.29 percent. The company announced that it has reached an agreement with Enbridge Income Fund to transfer its Canadian Liquids Pipelines Business for C$30.4 billion.

Cenovus Energy (CVE.TO) is decreasing by 1.77 percent. The company confirmed that it is in discussions with a potential buyer for its royalty interest and mineral fee title lands assets.

The heavyweight Financial Index is lower by 0.91 percent. National Bank of Canada (NA.TO) is down 1.23 percent and Toronto-Dominion Bank (TD.TO) is falling by 0.48 percent. Canadian Imperial Bank of Commerce is losing 0.82 percent and Royal Bank of Canada (RY.TO) is lower by 0.90 percent. Bank of Nova Scotia (BNS.TO) is declining by 1.21 percent and Bank of Montreal (BMO.TO) is surrendering 0.67 percent.

The Capped Information Technology Index is declining by 0.44 percent. Sierra Wireless (SW.TO) is losing 0.82 percent and Constellation Software (CSU.TO) is down 0.61 percent. BlackBerry (BB.TO) is decreasing by 0.54 percent.

The Gold Index is rising by 0.48 percent. Gold prices were little changed Friday after gains earlier in the week on Federal Reserve's dovish policy statement.

Barrick Gold (ABX.TO) is higher by 0.98 percent and B2Gold (BTO.TO) is increasing by 0.48 percent. Eldorado Gold (ELD.TO) is climbing by0.49 percent and Royal Gold (RGL.TO) is up 1.18 percent.

The Capped Health Care Index is up 0.38 percent. Extendicare (EXE.TO) is higher by 0.68 percent and Concordia Healthcare (CXR.TO) is climbing by 0.91 percent. Catamaran (CCT.TO) is rising by 0.51 percent.

The Capped Industrials Index is rising by 0.02 percent. Canadian Pacific Railway (CP.TO) is gaining 0.11 percent and Canadian National Railway (CNR.TO) is up 0.59 percent. Finning International (FTT.TO) is increasing by 1.64 percent

Bombardier (BBD-A.TO) is declining by 2.35 percent. Bombardier Transportation, the Rail technology unit of Bombardier, announced that its newly-established Chinese joint venture has won the first contract for an INNOVIA Automated People Mover or APM System.

Stella-Jones (SJ.TO) is falling by 0.34 percent, after it agreed to acquire the shares of Ram Forest Group Inc. and Ramfor Lumber Inc.

On the economic front, Statistics Canada reported Friday morning that Canadian retail sales dipped by 0.1 percent in April. Economists had been looking for an increase of 0.7 percent. The March result was also upwardly revised to a gain of 0.9 percent, from the increase of 0.7 percent that had been originally reported.

Statistics Canada also reported that the Canadian consumer price index rose by 0.9 percent on an annual basis in May. Economists had expected an increase of 0.8 percent.

The euro area current account surplus increased in April largely reflecting an improvement in goods trade, the European Central Bank said Friday. The current account surplus rose to a seasonally adjusted EUR 22.3 billion from EUR 18 billion a month ago.

Germany's producer prices declined more than expected in May, data released by Destatis revealed Friday. Producer prices declined 1.3 percent in May from last year, but slower than the 1.5 percent drop seen in April and 1.7 percent fall in March.

U.K. public sector borrowing declined in May from the last year, the Office for National Statistics reported Friday. Public sector net borrowing excluding interventions was GBP 10.1 billion or 0.5 percent of GDP in May. This was a decrease of GBP 2.2 billion from May 2014. It was expected to drop to GBP 10.3 billion.

Sentiment among U.K. households concerning house prices increased for the twenty-seventh consecutive month in June, improving to an eight-month high, as households expects that any uncertainty caused by the general election has passed, a survey from Knight Frank and Markit Economics showed Friday.

The house price sentiment index, or HPSI, rose to 59.5 in June from 58.0 in the previous month. This marked the twenty-seventh successive month that the index remained above 50, a level separating rise and decline in prices.

In commodities, crude oil futures for July delivery are down $0.88 or 1.46 percent at $59.57 a barrel.

Natural gas for July is down 0.015 or 0.54 percent at $2.762 per million btu.

Gold futures for August are up $1.40 or 0.12 percent at $1,203.40 an ounce.

Silver for July is down $0.013 or 0.08 percent at $16.14 an ounce.