TSX Ends Lower As Commodity Prices Slide -- Canadian Commentary

(RTTNews) - Canadian stocks dropped to end sharply lower for a third session on Tuesday, tracking declining equity markets, with weakness in commodity prices pulling down gold, mining, and energy stocks, with almost all sectors of the main index ending in the red.

European markets ended on negative territory, due to continued concerns over Greece. The country is expected to make a 300 million euros payment to the International Monetary Fund next week. Greece's government on Monday ruled out imposing controls over capital flows over the upcoming long weekend, after an opposition lawmaker suggested the move if the country fails to strike a deal with its creditors soon.

Sentiments were also impacted by political uncertainty in Spain, where Prime Minister Mariano Rajoy's Popular Party suffered its worst result in 20 years in a municipal election, as the voters punished his government for four years of austerity and a raft of corruption scandals before a general election due in November.

Markets in the United States ended in negative territory, after returning to action following the Memorial Day holiday. A slew of U.S. economic reports released on Monday showed some better than anticipated results.

New orders for U.S. manufactured durable goods in April declined due to a pullback in orders for transportation equipment, but were in line with economists' expectations.

Home prices in major U.S. metropolitan areas continued to show notable annual growth in the month of March, while new home sales rebounded more than expected in April.

Meanwhile, consumer confidence in the U.S. improved modestly in May after declining sharply in April, but were ahead of estimates.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,050.81, down 136.59 points or 0.90 percent. The index scaled an intraday high of 15,188.65 and a low of 14,974.30.

On Monday, the index closed down 13.36 points or 0.09 percent, at 15,195.11. The index scaled an intraday high of 15,205.34 and a low of 15,172.15.

Gold futures ended sharply lower as the dollar strengthened after slew of mostly upbeat economic data from the U.S., amid mounting speculation that the Federal Reserve will hike rates in either July or September.

The Gold Index dropped 2.25 percent, with gold for June delivery plunging $17.10 or 2.8 percent, to settle at $1,186.90 an ounce an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) fell 3.47 percent, and Yamana Gold Inc. (YRI.TO) fell 3.03 percent. Eldorado Gold Corp. (ELD.TO) shed 1.84 percent.

Barrick Gold Corp. (ABX.TO) dropped 3.70 percent. The company announced the formation of a strategic partnership with Zijin Mining Group Co.

Pan American Silver (PAA.TO) shed 4.02 percent. The company announced that two employees sustained fatal injuries in a single vehicle accident at its Manantial Espejo mine in Santa Cruz, Argentina, on Saturday.

The Capped Materials Index dived 2.00 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.18 percent and Agrium Inc. (AGU.TO) slipped 0.89 percent.

Agnico Eagle Mines Limited (AEM.TO) fell 2.97 percent, Franco-Nevada Corp. (FNV.TO) slipped 1.27 percent, and Silver Wheaton Corp. (SLW.TO) fell 0.98 percent.

Crude oil ended sharply lower as the dollar strengthened after a slew of some mostly upbeat economic data from the U.S.

The Energy Index dipped 1.50 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, shedding $1.69 or 2.8 percent, to settle at $58.03 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 2.00 percent, while Crescent Point Energy Corp. (CPG.TO) slipped 0.60 percent. Cenovus Energy Inc. (CVE.TO) dropped 1.24 percent, Encana Corp. (ECA.TO) surrendered 2.03 percent, and Canadian Natural Resources Limited (CNQ.TO) fell 1.17 percent.

Canadian Oil Sands Limited (COS.TO) dipped 0.18 percent, while Legacy Oil + Gas (LEG.TO) fell 3.31 percent. Pacific Rubiales Energy Corp. (PRE.TO) gained 1.00 percent.

The Diversified Metals & Mining Index fell 1.32 percent, as First Quantum Minerals Ltd. (FM.TO) shed 1.16 percent, Teck Resources Limited (TCK.B.TO) fell 4.47 percent, Lundin Mining Corp. (LUN.TO) slipped 0.70 percent, and Sherritt International Corp. (S.TO) dived 3.25 percent.

The heavyweight Financial Index shed 0.87 percent, as Bank of Nova Scotia (BNS.TO) dropped 0.67 percent, Royal Bank of Canada (RY.TO) dived 0.92 percent. Canadian Imperial Bank of Commerce (CM.TO) dropped 1.02 percent.

National Bank of Canada (NA.TO) dropped 0.66 percent, while Bank of Montreal (BMO.TO) fell 0.83 percent.

Toronto-Dominion Bank (TD.TO) fell 1.24 percent. The company has agreed to acquire Nordstrom's existing U.S. Visa and private label consumer credit card portfolio. The bank will also become the exclusive U.S. issuer of Nordstrom-branded Visa and private label consumer credit cards to Nordstrom customers.

The Capped Health Care Index slipped 0.64 percent as Valeant Pharmaceuticals International Inc. (VRX.TO) dipped 0.07 percent, Concordia Healthcare Corp. (CXR.TO) slipped 2.07 percent, and Catamaran Corp. (CCT.TO) gathered 0.92 percent.

The Capped Industrials Index fell 1.06 percent, as Finning International Inc. (FTT.TO) fell 1.43 percent, Air Canada (AC.TO) fell 0.32 percent. Canadian Pacific Railway Limited (CP.TO) slipped 0.65 percent, and Canadian National Railway (CNR.TO) declined 0.65 percent.

Bombardier Inc. (BBD-A.TO) fell 0.81 percent.

CAE Inc. (CAE.TO) shed 0.98 percent. The company's fourth quarter earnings per share improved to C$0.24 from C$0.23 in the previous year.

The Information Technology Index gained 0.44 percent, as Descartes Systems Group Inc. (DSG.TO) moved up 0.16 percent, Constellation Software Inc. (CSU.TO) gained 1.81 percent and Sierra Wireless, Inc. (SW.TO) dropped 1.27 percent.

BlackBerry Inc. (BB.TO) slipped 0.31 percent.

The Capped Telecommunication Index fell 0.24 percent, as Rogers Communications Inc. (RCI.B.TO) fell 0.34 percent, TELUS Corp. (T.TO) added 0.12 percent, and BCE Inc. (BCE.TO) slipped 0.15 percent.

In economic news, a Commerce Department report on Tuesday showed a modest decline in new orders for U.S. manufactured durable goods in April, largely reflecting a pullback in orders for transportation equipment. Durable goods orders dipped 0.5 percent in April, but came in line with economists' estimate.

Home prices in major U.S. metropolitan areas continued to show notable annual growth in the month of March, a report from Standard & Poor's showed Tuesday. The 20-City Composite Home Price Index rose 5.0 percent year-over-year in March, unchanged from the annual growth seen in February. Economists expected the rate of growth to slow to 4.6 percent.

A separate Commerce Department report on Tuesday showed U.S. new home sales rebounded more than expected in April, following the pullback seen in the previous month. New home sales climbed 6.8 percent to an annual rate of 517,000 in April from the revised March rate of 484,000. Economists expected new home sales to rise to a rate of 509,000 from the 481,000 originally reported for the previous month.

Meanwhile, consumer confidence in the U.S. improved modestly in May after declining sharply in April, the Conference Board said Tuesday. The consumer confidence index rose to 95.4 in May from a downwardly revised 94.3 in April. Economists expected the index to dip to 95.0 from the 95.2 originally reported for the previous month.

British retailers posted strong growth in sales this month and their outlook for sales and orders improved at an even stronger pace in the year to June, the quarterly Distributive Trades Survey from the Confederation of British Industry showed Tuesday.

The combined real gross domestic product of the 34-member countries of the Organization for Economic Cooperation and Development grew at a slower pace in the first quarter, a quarterly report from the OECD showed Tuesday. Real gross domestic product advanced 0.3 percent in the first quarter, slower than the 0.5 percent expansion seen a quarter ago.