TSX Ends Lower On China, Greece Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Friday, as global equity markets declined amid continued worries over Greece and weakness in China due to concerns about new trading regulations. Chinese regulators reportedly expanded the supply of shares available for short sellers while clamping down on over-the-counter margin trading.

Markets in Europe ended deep in the red, over a potential Greek default, with a Greek exit of the eurozone are weighing on investor sentiment. German Finance Minister Wolfgang Schaeuble refused further concessions to Greece and the International Monetary Fund ruled out giving the country any leeway on 1 billion euros of debt repayments due by early May.

Markets in the United States also ended deep in negative territory, with developments in Greece and China having a negative impact on the U.S. markets. Traders also digested the latest batch of economic data.

In economic news from the U.S., a Labor Department report showed a modest increase in U.S. consumer prices in March, but were slightly less than economists' expectations. A Conference Board report showed its index of leading U.S. economic indicators for March continued to increase, but less than expected.

Nevertheless, consumer sentiment in the U.S. improved more than expected in April, a report from the University of Michigan showed Friday.

The benchmark S&P/TSX Composite Index closed Friday at 15,360.55, down 26.22 points or 0.17 percent. The index scaled an intraday high of 15,367.56 and a low of 15,275.53.

On Thursday, the index closed down 64.10 points or 0.41 percent, at 15,386.77. The index scaled an intraday high of 15,454.25 and a low of 15,324.96.

Gold futures ended higher on its safe haven appeal after global equity markets tracked lower over worries of a potential Greek debt repayment default and a regulatory change in China.

The Gold Index moved up 0.43 percent, with gold for June delivery gaining $5.10 or 0.4 percent to settle at $1,203.10 an ounce on the New York Mercantile Exchange Friday.

Goldcorp Inc. (G.TO) gained 0.21 percent, while Yamana Gold Inc. (YRI.TO) moved up 0.61 percent. Among other gold stocks, Kinross Gold Corp (K.TO) gained 0.36 percent, Eldorado Gold Corp. (ELD.TO) fell 1.95 percent, and Barrick Gold Corp. (ABX.TO) added 1.43 percent.

Crude oil prices ended lower, tracking declining global equity markets on concerns over a potential Greek debt repayment default and an equity market regulatory change in China.

The Energy Index moved up 0.26 percent, even as U.S. crude oil futures for May delivery, the most actively traded contract, shed $0.97 or 1.7 percent, to settle at $55.74 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) inched up 0.12 percent, and Canadian Natural Resources Limited (CNQ.TO) added 1.00 percent. Canadian Oil Sands Limited (COS.TO) ended flat at $12.96 a share.

Crescent Point Energy Corp. (CPG.TO) inched up 0.03 percent, while Cenovus Energy Inc. (CVE.TO) moved up 0.22 percent. Bonterra Energy (BNE.TO) advanced 0.74 percent, while Legacy Oil + Gas Inc. (LEG.TO) fell 1.54 percent.

Encana Corp. (ECA.TO) gained 0.76 percent, while Pacific Rubiales Energy Corp. (PRE.TO) added 2.13 percent.

The Capped Materials Index shed 0.19 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.72 percent and Agrium Inc. (AGU.TO) down 0.40 percent.

The Diversified Metals & Mining Index fell 1.31 percent, as First Quantum Minerals Ltd. (FM.TO) shed 2.81 percent and Lundin Mining Corp. (LUN.TO) dropped 1.96 percent.

Teck Resources (TCK.B.TO) fell 1.49 percent, while Finning International Inc. (FTT.TO) shed 0.88 percent.

The heavyweight Financial Index fell 0.42 percent, as Bank of Nova Scotia (BNS.TO) gained 0.23 percent and Bank of Montreal (BMO.TO) surrendered 0.34 percent.

National Bank of Canada (NA.TO) shed 0.18 percent, Royal Bank of Canada (RY.TO) edged down 0.59 percent, Toronto-Dominion Bank (TD.TO) dropped 0.52 percent, and Canadian Imperial Bank of Commerce (CM.TO) fell 0.20 percent.

The Capped Health Care Index fell 0.97 percent, as Extendicare (EXE.TO) surrendered 1.41 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 0.50 percent, Catamaran Corp. (CCT.TO) slipped 0.44 percent, and Concordia Healthcare (CXR.TO) slid 1.42 percent.

The Capped Industrials Index inched up 0.04 percent, with Bombardier Inc. (BBD.B.TO) down 1.48 percent and Canadian Pacific Railway Limited (CP.TO) down 1.08 percent. Canadian National Railway Company (CNR.TO) added 0.26 percent,.

The Information Technology Index shed 1.36 percent, with BlackBerry Limited (BB.TO) ending flat at $12.10 a share.

Among other tech stocks, Constellation Software Inc. (CSU.TO) dipped 0.72percent, Sierra Wireless, Inc. (SW.TO) dived 3.91 percent, and Descartes Systems Group Inc. (DSG.TO) added 0.35 percent.

The Capped Telecommunication Index slipped 0.50 percent, with BCE Inc. (BCE.TO) edging down 0.02 percent and Rogers Communications Inc. (RCI.B.TO) down 1.21 percent. Manitoba Telecom Services Inc. (MBT.TO), dropped 0.80 percent.

Data Group Ltd. (DGI.TO) shed 1.32 percent, after Michael Suksi stepped down as its President and CEO.

Oncolytics Biotech (ONC.TO) soared 9.41 percent, after it received an orphan drug designation from the U.S. FDA for REOLYSIN, for the treatment of malignant glioma.

Aecon Group (ARE.TO) is advancing by 2.64 percent, after it was awarded two contracts valued at approximately $110 million.

On the economic front, data from Statistics Canada showed that Canada's consumer price index rose 1.2 percent on year in March, after increasing 1.0 percent in February. The index was expected to remain unchanged from last month.

The Bank of Canada's core consumer price index rose to 2.4 percent, exceeding expectations of 2.1 percent.

Separate data showed that retail sales in Canada spiked 1.7 percent to C$42.2 billion in February. The figures exceeded expectations for an increase of 0.5 percent. The January reading was revised up to -1.4 percent.

In other economic news, a Labor Department report on Friday showed another modest increase in U.S. consumer prices in March, but were slightly less than economists' expectations. The consumer price index edged up 0.2 percent in March, matching the increase seen in February. Economists expected the index to rise by 0.3 percent.

Consumer sentiment in the U.S. improved more than expected in April, a report from the University of Michigan showed Friday. The preliminary reading on the consumer sentiment index for April came in at 95.9 compared to the final March reading of 93.0. Economists expected the index to edge up to 94.0.

The Conference Board's report on Friday showed continued increase at its index of leading U.S. economic indicators for March, but less than what economists expected. The leading economic index increased 0.2 percent in March following a downwardly revised 0.1 percent uptick in February. Economists expected the index to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.

Eurozone's consumer prices declined in March from a year ago, as estimated earlier, but prices rose from the previous month at the fastest rate in two years, latest figures from the statistical office Eurostat showed Friday.

The harmonized index of consumer prices dropped 0.1 percent annually after a 0.3 percent decline in February. That was in line with the flash estimate released by Eurostat on March 31. Prices decreased for the fourth consecutive month.

The euro area current account surplus declined in February largely due to a decrease in primary income, data published by the European Central Bank showed Friday. The current account surplus dropped to a seasonally adjusted EUR 26.4 billion from EUR 30.4 billion in January.

The U.K. unemployment rate fell to the lowest since 2008 and claimant count reached a 40-year low, labor market statistics released ahead of the General Elections showed Friday. The ILO jobless rate eased to 5.6 percent in three months to February from 5.8 percent in September to November, the Office for National Statistics said. The rate was the lowest since 2008 and matched economists' expectations.