TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session Thursday, tracking declining global equity markets with concerns over Chinese growth and just-released data showing a significant uptick in U.S. inflation. Uncertainty over the upcoming earnings season also generated some negative sentiment, with investors seeking safer havens.

Asian markets ended weak with major European markets notably lower, tracking Wall Street's fall on Thursday and amid valuation concerns for technology stocks. The sell-off in the U.S. was led by technology stocks, with the tech-heavy Nasdaq dropping significantly, its worst performance since November 2011.

In economic news, consumer sentiment in the U.S. improved more than expected in April, a Thomson Reuters and the University of Michigan report showed Friday, with the index at a nine-month high.

Meanwhile, U.S. producer prices rose much more than expected in March, with prices for services showing a notable rebound, a Labor Department report revealed Friday. As well, import prices in the U.S. rose more than expected in March, with prices for fuel imports showing another notable increase.

China's consumer price inflation accelerated in March on higher food prices, but remained within the government's full year 3.5 percent target, data from the National Bureau of Statistics revealed Friday.

The S&P/TSX Composite Index closed Friday at 14,255.51, down 52.49 points or 0.37 percent. The index scaled an intraday high of 14,308.00 and a low of 14,221.39.

Crude oil ended higher on some positive economic data from the U.S. with concerns of possible supply disruptions from Russia due to the ongoing conflict in Ukraine and a likely delay in the reopening of Libyan ports.

The Energy Index gained 0.06 percent, with U.S. crude oil futures for May delivery, adding $0.34 or 0.3 percent to close at $103.74 a barrel Friday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 0.58 percent, while Encana Corp. (ECA.TO) moved up 0.65 percent. Canadian Natural Resources Ltd. (CNQ.TO) dropped 1.61 percent, while Surge Energy Inc. (SGY.TO) added 1.38 percent.

The Global Gold Index dropped 1.07 percent, with gold futures for June delivery, shedding $1.50 or 0.1 percent to close at $1,319.00 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) dropped 0.87 percent, while Barrick Gold Corp. (ABX.TO) slipped 0.44 percent. Yamana Gold Inc. (YRI.TO) surrendered 0.74 percent, while Goldcorp Inc. (G.TO) shed 1.45 percent after the miner yesterday indicated plans to raise its offer for Osisko Mining Corp. (OSK.TO).

The Capped Materials Index surrendered 0.96 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.52 percent.

The heavyweight Financial Index shed 0.22 percent with the Toronto-Dominion Bank (TD.TO) up 0.08 percent, Bank of Montreal (BMO.TO) up 0.17 percent, and National Bank of Canada (NA.TO) down 0.46 percent. Bank of Nova Scotia (BNS.TO) slipped 0.03 percent, while Manulife Financial Corp. (MFC.TO) dropped 0.74 percent.

The Diversified Metals & Mining Index slipped 0.14 percent, with Teck Resources Limited (TCK.B.TO) down 0.44 percent, Lundin Mining Corp. (LUN.TO) up 0.19 percent, and First Quantum Minerals (FM.TO) up 0.65 percent.

The Information Technology Index fell 1.14 percent, with BlackBerry Limited (BB.TO) plunging 4.77 percent, even as news reports yesterday indicated the smartphone maker may be considering exiting its handset business if it remains unprofitable.

The Capped Industrials Index dropped 0.77 percent, with Bombardier Inc. (BBD.B.TO) flat at $4.00 and Air Canada (AC.B) down 2.05 percent.

In corporate news, Finning International Inc. (FTT.TO) shed 1.36 percent after indicating that it expects consolidated revenues for the first quarter of 2014 to be approximately C$1.676 billion, up 8% over prior year quarter.

Entrec Corp. (ENT.V) plunged 9.93 percent after slashing its revenue guidance for the year ending December 31, 2014 to a range of C$230 - C$250 million from previous estimate of C$250 million - C$270 million.

In economic news from the U.S., the Labor Department said its producer price index for final demand advanced by 0.5 percent in March after edging down by 0.1 percent in February. Economists had been expecting the index to tick up by 0.1 percent.

Core producer prices, which exclude food and energy, also rose by 0.6 percent in March following a 0.2 percent drop in the previous month. Core prices had been expected to rise by 0.2 percent.

Import prices in the U.S. too were up more than expected in the month of March, rising 0.6 percent, after climbing 0.9 percent in February, the Labor Department revealed in a report. Economists had expected import prices to tick up by 0.2 percent.

Consumer sentiment in the U.S. improved more than anticipated in April, with the preliminary reading on the consumer sentiment index for April coming in at 82.6 compared to the final March reading of 80.0. Economists expected the index to inch up to a reading of 81.0. With the bigger than expected increase, the consumer sentiment index reached its highest level since last July, at a nine-month high.

Elsewhere, China's consumer prices rose 2.4 percent from a year ago following a 2 percent rise in February, in line with expectations. Nevertheless, on a month-on-month basis, consumer prices dropped 0.5 percent, offsetting the 0.5 percent increase in the prior month, the first decline in four months.

In Europe, U.K. construction output declined in February at the fastest pace in three months, due mainly to the severe bad weather, the Office for National Statistics said Friday. Construction output decreased 2.8 percent from January, when it rose 2.1 percent, revised up from 1.8 percent. The decline was the worst since November, when output fell 4.1 percent. Construction output accounts for 6.3 percent of U.K. gross domestic product.