Canadian Stocks Down At Midday On Europe, Ukraine

(RTTNews) - Canadian stocks are lower Thursday morning, with investors tracking weakness in European markets and the escalating turmoil in Ukraine, notwithstanding an upbeat second quarter gross domestic product data from the U.S.

The S&P/TSX Composite Index ticked lower despite some upbeat data showing the U.S. economy to have expanded faster during the second quarter than previously estimated.

Revised figures from the U.S. Commerce Department showed Gross Domestic Product, a broad measure of economic activity, rose by 4.2% in the April-to-June period.

Meanwhile, Ukraine turmoil continued to escalate after President Petro Poroshenko on Thursday alleged Russian troops had been sent into his country and called for an urgent meeting of the United Nations Security Council and the European Council to discuss the issue.

News reports say Ukraine has claimed Russian forces have entered the coastal town of Novoazovsk and have seized several villages near the border with Russia. A pro-Russia rebel leader also claimed the town of Novoazovsk is currently under their control.

There were also reports of a convoy of Russian tanks and weaponry rolling in through southeast, with US ambassador to Ukraine, Geoffrey Pyatt tweeting that an increasing number of Russian troops are intervening directly in the conflict on Ukrainian territory.

Mining, financial, information technology, and real estate were drifting lower, with gold and utilities stocks offering resistance. Energy stocks were slightly higher, while industrial stocks also ticked higher.

Bank stocks are in focus, with Toronto-Dominion Bank and Canadian Imperial Bank of Commerce reporting higher quarterly profit.

The benchmark S&P/TSX Composite Index is down 34.29 points or 0.22 percent at 15,568.36 Thursday, having touched a low of 15,541.95 earlier.

On Wednesday, the S&P/TSX Composite Index ended at 15,602.65, down 16.56 points or 0.11 percent, after having scaled an all-time high closing on Tuesday. The index scaled an intraday high of 15,624.51 and a low of 15,559.82.

Most European markets trended lower after some disappointing eurozone economic confidence data, with Germany's unemployment rising unexpectedly in August. Most Asian markets also ended lower today.

The S&P/TSX Capped Financial Index was down 0.80 percent with Canada's second-largest lender Toronto-Dominion Bank (TD.TO) trending down 0.41 percent despite reporting a better-than-expected profit in its third quarter, reflecting strong growth in all segments, higher revenues as well as lower provision for credit losses.

TD Bank's attributable net income on an adjusted basis was C$2.12 billion or C$1.15 per share for the quarter, which compares with analysts' earnings expectations of C$1.09 per share.

Canadian Imperial Bank of Commerce is sharply down 2.30 percent after reporting a better-than-expected third-quarter profit, helped by strong gains at its wealth management and investment dealer divisions. Excluding items, the bank's earnings for the quarter was C$2.23 per share, with analysts anticipating earnings of C$2.21 per share.

National Bank of Canada (NA.TO) is up 1.55 percent, while Bank of Montreal (BMO.TO) is declining 0.88 percent. Both Royal Bank of Canada (RY.TO) and Bank of Nova Scotia (BNS.TO) is declining 0.68 percent and 1.00 percent, respectively.

The Capped Materials Index is down 0.10 percent, with Barrick Gold Corp. (ABX.TO) trending higher by 0.36 percent and Goldcorp Inc. (G.TO) gaining 0.80 percent. Agnico Eagle Mines Limited (AEM.TO) and Yamana Gold Inc. (YRI.TO) are up 0.62 percent and 0.44 percent, respectively.

The Diversified Metals Index is down 0.4 percent, with Teck Resources Limited (TCK.B.TO) down 1.48 percent and Lundin Mining Corporation (LUN.TO) declining 1.65 percent.

The Energy Index is slightly lower by 0.7 percent, while the Consumer Discretionary Index is down by 0.17 percent.

In commodities, crude oil futures for October are up at $94.34 a barrel, after scaling a high of $94.71, after data from the U.S. Energy Information Administration yesterday showed crude oil stockpiles to have declined by a more than expected 2.1 million barrels in the week ended August 22.

Gold futures for December are up $7.80 or 0.61 percent at $1,291.20 an ounce.

Silver for December is up $0.145 at $19.620 an ounce. Meanwhile, copper is down $0.047 at $3.1515 per pound.

In economic news, pending home sales in the U.S. rebounded in July due to low some interest rates and confidence in the U.S. economic recovery, according to the National Association of Realtors. NAR's Pending Home Sales Index climbed 3.3 percent to 105.9 in July from 102.5 in June. Despite having now risen in four of the last five months, pending home sales remain 2.3 percent below July 2013.