TSX Ends Lower On Global Growth Worries -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower Monday, tracking declining global stocks with investor concerns over global economic growth after some disappointing economic data from China and the uncertainty related to the outlook for U.S. interest rates.

The decline was driven by mining and consumer discretionary stocks as the prominent losers. Banks were weak, while energy stocks turned in a mixed performance amid concerns about demand for oil and gas.

The S&P/TSX Composite Index closed Monday at 15,486.63, down 44.95 points or 0.29 percent. The index scaled a intraday high of 15,530.85 and a low of 15,442.05.

On Friday, the index closed down 2.74 points or 0.02 percent at 15,531.58, after scaling a high of 15,580.46 and a low of 15,498.12 intraday.

Crude oil ended higher on some encouraging economic data out of the U.S. even as investors await cues from the two-day Federal Reserve policy meet on Wednesday.

The Energy Index gained 0.25 percent, with U.S. crude oil futures for October delivery gaining $0.65 or 0.7 percent to close at $92.92 a barrel Monday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) added 0.84 percent, Enbridge Inc. (ENB.TO) shed 0.91 percent, Suncor Energy Inc. (SU.TO) added 0.30 percent, Encana Corp. (ECA.TO) gained 0.68 percent, and Canadian Natural Resources Limited (CNQ.TO) moved up 0.24 percent.

The Financial Index dropped 0.21 percent, with Toronto-Dominion Bank (TD.TO) down 0.09 percent, Canadian Imperial Bank of Commerce (CM.TO) slipped 0.14 percent, Royal Bank of Canada (RY.TO) fell 0.34 percent, Bank of Nova Scotia (BNS.TO) added 0.08 percent, and Bank of Montreal (BMO.TO) edged down 0.06 percent.

Gold futures snapped a five-day loss to end higher mostly on bargain hunting after the precious metal shed a near three percent last week with speculations rife that the Federal Reserve may hike interest rates earlier than expected following a slew of positive economic data out of the U.S.

Global Gold Index slipped 0.12 percent, with gold for December delivery adding $3.60 or 0.3 percent to close at $1,235.10 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp Inc. (G.TO) shed 0.78 percent, B2Gold Corp. (BTO.TO) dropped 0.85 percent, and Yamana Gold Inc. (YRI.TO) shed 0.74 percent. Eldorado Gold Corp. (ELD.TO) gained 1.44 percent, while Barrick Gold Corp. (ABX.TO) dropped 1.61 percent.

The Capped Materials Index shed 0.50 percent mostly on gold stocks, although Potash Corp. of Saskatchewan Inc. (POT.TO) gained 0.32 percent.

The Diversified Metals & Mining Index dropped 1.71 percent, with First Quantum Minerals Ltd. (FM.TO) dropped 3.98 percent, Lundin Mining Corp. (LUN.TO) shed 1.34 percent, and Teck Resources Limited (TCK.B.TO) fell 1.52 percent.

The Capped Industrial Index dipped 0.08 percent, with Bombardier Inc. (BBD.B.TO) down 0.27 percent and Air Canada (AC.B.TO) surged 7.19 percent.

Canadian Pacific Railway (CP.TO) slipped 0.03 percent after BMO Capital Markets raised the stock's rating.

Among other notable movers, WestJet Airlines (WJA.TO) jumped 5.81 percent after announcing a fee for for a first checked bag for travels within Canada and between Canada and the United States.

The Information Technology Index fell 0.16 percent, with BlackBerry Limited (BB.TO) up 1.71 percent and Avigilon Corp. (AVO.TO) down 0.89 percent.

The Consumer Staples Index lost 0.13 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) surrendering 1.59 percent, Metro Inc. (MRU.TO) up 0.96 percent, Empire Company Limited (EMP.A.TO) gained 0.96 percent, and Maple Leaf Foods Inc. (MFI.TO) dropped 2.21 percent.

The Healthcare Index dropped 0.86 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 0.85 percent, Extendicare Inc. (EXE.TO) down 0.60 percent, and Catamaran Corp. (CCT.TO) down 1.32 percent.

The Telecom Index shed 0.31 percent with Rogers Communications Inc. (RCI.B.TO) down 0.31 percent, while TELUS Corp. (T.TO) shed 0.33 percent.

CAE, Inc. (CAE.TO) subsidiary CAE Healthcare said Saturday that it will be delivering a simulation-based solution to Abiomed, Inc. (ABMD), a provider of breakthrough heart support technologies, for its Impella heart pump education programs. CAE shares ended flat.

Manulife Financial Corp. (MFC.TO) surrendered 0.81 percent after announcing the completion of its previously announced offerings of subscription receipts, raising a total of about $2.26 billion.

Tim Hortons, Inc. (THI.TO) slipped 0.14 percent after indicating its third quarter U.S. same-store sales grew 7 percent, while Canadian same-store sales rose 3.6 percent.

Brookfield Renewable Energy Partners L.P. (BEP.UN.TO) added 3.02 percent after the company raised its distribution growth target to 5 - 9 percent annually, from a previous target of 3 - 5 percent.

In economic news from the U.S., investors largely shrugged off a report from the Federal Reserve Bank of New York that showed business activity in the New York manufacturing sector to have expanded at a robust pace in September, lifting the headline business conditions index to 27.5, a near five-year high. Economists expected the index at 16.0.

With manufacturing output falling for the first time since January, the Federal Reserve report on U.S. industrial production showed an unexpected decline in August. Industrial production edged down 0.1 percent in August after inching up by a downwardly revised 0.2 percent in July. Economists expected production to climb by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

According to data released by the National Bureau of Statistics over the weekend, industrial production in China rose 6.9 percent year-over-year in August following the 9 percent rise in July, with growth slowing for the second straight month and hitting its slowest pace in over 5 years.

Chinese retail sales expanded by a smaller than expected 11.9 percent year-over-year in August, slower than the 12.2 percent increase in July.

Meanwhile, the OECD projected 0.8 percent growth this year in euro area, down from the 1.2 percent expansion estimated in May. For 2015, growth is estimated at 1.1 percent. The Paris-based think tank recommended more monetary support for the euro area, stating that recent actions by the ECB though welcome, measures including quantitative easing are warranted.

It is widely expected that the U.S. Federal Reserve, which will conclude its two-day policy meeting this Wednesday, will further reduce the pace of its bond purchases. The focus is on what the Fed has to say about the outlook for interest rates.

Results of a couple of regional manufacturing surveys, reports on housing starts and homebuilder confidence and weekly jobless claims data are also awaited.

Among other data due this week are the Labor Department 's August producer prices report for final demand, the Commerce Department's current account data for the second quarter, and the Conference Board's leading economic indicators.