Canadian Stocks Take A Breather After All-time Highs -- Canadian Commentary

(RTTNews) - Canadian stocks are lower Wednesday morning, with investors choosing to take some profits amid a lack of market moving catalysts.

Weakness in European markets and sluggish commodity prices are also contributing to the decline.

Investors continue to watch the situation in Ukraine and the Middle East. While, Ukraine still remains tense despite the Russian President Vladimir Putin and the Ukrainian President Petro Poroshenko meeting in Belarus, the situation in Gaza is a bit calm as the ceasefire between Israel and the Palestinians took effect this morning.

Miners, consumer discretionary and industrial stocks are drifting lower. Energy stocks are turning in a mixed performance.

Bank stocks are in focus, supported by a better than expected earnings report from National Bank of Canada.

The benchmark S&P/TSX Composite Index is down 11.59 points or 0.07 percent at 15,607.62, having declined to 15,579.96 earlier.

On Tuesday, the index ended up 20.47 points or 0.13 percent at 15,619.21, an all-time closing high. The index scaled a intraday high of 15,653.39 and a low of 15,599.50.

Among big six banks, National Bank of Canada (NA.TO) is up 2.6 percent after reporting third quarter net income of C$423 million, up from the prior year's C$387 million. Earnings per share were C$1.24, up 7% from C$1.16 in the same quarter of 2013.

Bank of Montreal (BMO.TO) is rising 1.3 percent. Royal Bank of Canada (RY.TO) and Canadian Imperial Bank of Commerce (CM.TO) are modestly higher and Toronto-Dominion Bank (TD.TO) is slightly lower, while Bank of Nova Scotia (BNS.TO) is declining 0.7 percent.

The Capped Materials Index is down 0.9 percent. Barrick Gold Corp. (ABX.TO) is down more than 1 percent. According to reports the company is likely disband its entire corporate development team with a view to trim costs.

Goldcorp Inc. (G.TO), Franco-Nevada Corporation (FNV.TO), Agnico Eagle Mines Limited (AEM.TO) and Yamana Gold Inc. (YRI.TO) are down 0.8 to 1.2 percent.

The Diversified Metals Index is down 0.4 percent, with Teck Resources Limited (TCK.B.TO), Lundin Mining Corporation (LUN.TO) and Sherritt International Corporation (S.TO) declining 0.7 to 1.0 percent.

In the energy sector, Talisman Energy (TLM.TO) is lower by over 4 percent on the back of reports that the deal with Spanish energy company Repsol has stalled. Cenovus Energy Inc. (CVE.TO) and Encana Corporation (ECA.TO) are moving up 1.2 percent and 1.3 percent, respectively.

The Consumer Discretionary Index is lower by over 0.5 percent. Tim Hortons Inc. (THI.TO) is down more than 2 percent on profit taking after two successive days of strong gains. Dollarama Inc. (DOL.TO) and Linamar Corporation (LNR.TO) are down nearly 1 percent.

Cominar Real Estate Investment Trust (CUF.UN.TO) is down nearly 2 percent. The company said it will buy 15 real estate properties in Quebec and Ontario from Ivanhoe Cambridge Inc, for C$1.53 billion.

Cameco (CCO.TO) shares are down 2.8 percent. The company, in response to a strike notice from the United Steelworkers, has initiated a shutdown of McArthur River mine and Key Lake mill operations and will cease production at these sites.

In commodities, crude oil futures for October are up marginally at $93.93 a barrel, coming off a high of $94.24, after data from the U.S. Energy Information Administration showed crude oil stockpiles to have declined by a more than expected 2.1 million barrels in the week ended August 22.

Natural gas for October is up $0.072 or 1.84 percent at $4.021 per million btu.

Gold futures for December are down $2.00 or 0.16 percent at $1,283.00 an ounce.

Silver for December is down $0.034 or 0.17 percent at $19.425 an ounce. Meanwhile, copper is down $0.017 or 0.52 percent at $3.196 per pound.

While Asian markets mostly ended higher today, European markets are currently weak. In economic news from the eurozone, the leading economic indicators index rebounded in July, gaining 0.3 percent month-over-month, following the 0.1 percent drop in June.

At the Jackson Hold Symposium last Friday, European Central Bank President Mario Draghi said the ECB might come out with more stimulus if inflation dropped further.