TSX Ends Lower On Global Growth Worries -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Friday, on global concerns as Chinese shares had their worst week in 6 years and Europe continues to wait for a resolution to the Greek debt crisis. Almost all sectors of the main Canadian index ended in the red.

The majority of the European markets ended in positive territory as investors hope for a last minute Greek deal. Investors now look to the emergency summit meeting of eurozone leaders to discuss the Greek crisis, seen as a final call for Athens to set things right.

The eurozone emergency meeting on Monday comes after yesterday's meet ended without a deal. Monday's meeting could be the deciding one for Greece's future with the euro. Greece faces a EUR 1.6 billion payment to the International Monetary Fund on June 30.

Markets in the United States ended in the red after being under pressure through the session. The pull back has been at least partially attributed to profit taking, following yesterday's strong rally. Concerns over Greece and lack of U.S. economic data also contributed to the weakness.

The benchmark S&P/TSX Composite Index closed Friday at 14,645.11, down 125.53 points or 0.85 percent. The index scaled an intraday high of 14,746.39 and a low of 14,584.43.

On Thursday, the index closed up 37.66 points or 0.26 percent, at 14,770.64. The index scaled an intraday high of 14,781.45 and a low of 14,685.15.

Crude oil futures ended sharply lower as the dollar strengthened and investors anticipating a further increase in Saudi Arabia's crude production, as investors await the outcome of the crucial emergency summit meeting of eurozone leaders on Monday.

The Energy Index fell 1.30 percent, as U.S. crude oil futures for July delivery dropped $0.84 or 1.4 percent, to settle at $59.61 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 0.88 percent, while Crescent Point Energy Corp. (CPG.TO) fell 1.83 percent and Encana Corp. (ECA.TO) dipped 0.07 percent

Enbridge Inc. (ENB.TO) jumped 3.17 percent after revealing an agreement with Enbridge Income Fund to transfer its Canadian Liquids Pipelines Business for C$30.4 billion.

Cenovus Energy (CVE.TO) fell 2.32 percent, after confirming that it is in discussions with a potential buyer for its royalty interest and mineral fee title lands assets.

Gold futures ended ended a tad lower after the dollar strengthened against the euro on concerns over Greece's failure to reach an agreement with its international creditors to sort out its financial mess.

The Gold Index shed 2.09 percent, with gold for August delivery dipping $0.10 to settle at $1,201.90 an ounce in electronic trade on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 2.94 percent, Barrick Gold Corp. (ABX.TO) shed 1.61 percent, and Kinross Gold Corp. (K.TO) dived 4.76 percent. IAMGOLD Corp. (IMG.TO) surrendered 2.75 percent, while Eldorado Gold Corp. (ELD.TO) declined 2.33 percent.

The Capped Materials Index fell 2.04 percent, as Agrium Inc. (AGU.TO) dropped 2.28 percent and Agnico Eagle Mines Limited (AEM.TO) dipped 2.66 percent. Franco-Nevada Corp. (FNV.TO) fell 1.80 percent, while Potash Corp. of Saskatchewan Inc. (POT.TO) declined 1.74 percent.

The Diversified Metals & Mining Index surrendered 2.03 percent, as First Quantum Minerals Ltd. (FM.TO) dived 3.34 percent, Sherritt International (S.TO) added 1.36 percent, and and Teck Resources (TCK.B.TO) fell 2.34 percent.

The heavyweight Financial Index fell 0.98 percent, as Royal Bank of Canada (RY.TO) dipped 1.32 percent, National Bank of Canada (NA.TO) surrendered 0.98 percent, and Bank of Montreal (BMO.TO) dropped 0.17 percent.

Bank of Nova Scotia (BNS.TO) slipped 1.20 percent, while Toronto-Dominion Bank (TD.TO) fell 0.91 percent. Canadian Imperial Bank of Commerce (CM.TO) dropped 0.89 percent.

The Capped Health Care Index slipped 0.54 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) dived 1.84 percent, Extendicare Inc. (EXE.TO) gained 2.17 percent, and Concordia Healthcare Corp. (CXR.TO) gathered 0.55 percent.

The Capped Industrials Index dropped 0.70 percent, as Bombardier Inc. (BBD-A.TO) shed 1.21 percent after its Transportation unit, the Rail technology unit of Bombardier, announced that its newly-established Chinese joint venture has won the first contract for an INNOVIA Automated People Mover or APM System.

Finning International Inc. (FTT.TO) gained 1.51 percent, while Canadian Pacific Railway (CP.TO) dropped 0.94 percent and Canadian National Railway (CNR.TO) added 0.64 percent.

The Information Technology Index shed 1.91 percent, as Sierra Wireless, Inc. (SW.TO) fell 2.51 percent and Descartes Systems Group Inc. (DSG.TO) gained 0.20 percent. BlackBerry Inc. (BB.TO) shed 2.06 percent.

The Capped Telecommunication Index slipped 0.56 percent, as TELUS Corp. (T.TO) moved up 2.28 percent, Rogers Communications Inc. (RCI.B.TO) dropped 1.08 percent and BCE Inc. (BCE.TO) surrendered 0.64 percent.

Stella-Jones (SJ.TO) added 0.29 percent, after it agreed to acquire the shares of Ram Forest Group Inc. and Ramfor Lumber Inc.

On the economic front, Statistics Canada reported Friday morning that Canadian retail sales dipped by 0.1 percent in April. Economists had been looking for an increase of 0.7 percent. The March result was also upwardly revised to a gain of 0.9 percent, from the increase of 0.7 percent that had been originally reported.

Statistics Canada also reported that the Canadian consumer price index rose by 0.9 percent on an annual basis in May. Economists had expected an increase of 0.8 percent.

Elsewhere, euro area current account surplus increased in April largely reflecting an improvement in goods trade, the European Central Bank said Friday. The current account surplus rose to a seasonally adjusted EUR 22.3 billion from EUR 18 billion a month ago.

Germany's producer prices declined more than expected in May, data released by Destatis revealed Friday. Producer prices declined 1.3 percent in May from last year, but slower than the 1.5 percent drop seen in April and 1.7 percent fall in March.

U.K. public sector borrowing declined in May from the last year, the Office for National Statistics reported Friday. Public sector net borrowing excluding interventions was GBP 10.1 billion or 0.5 percent of GDP in May. This was a decrease of GBP 2.2 billion from May 2014. It was expected to drop to GBP 10.3 billion.

Sentiment among U.K. households concerning house prices increased for the twenty-seventh consecutive month in June, improving to an eight-month high, as households expects that any uncertainty caused by the general election has passed, a survey from Knight Frank and Markit Economics showed Friday.

The house price sentiment index, or HPSI, rose to 59.5 in June from 58.0 in the previous month. This marked the twenty-seventh successive month that the index remained above 50, a level separating rise and decline in prices.

Confirming the outlook for more economic expansion in the second half of the year, the Conference Board's index of leading U.S. economic indicators climbed by 0.7 percent in May, in line with the increase seen in April. Economists expected the index to rise by 0.4 percent.

The leading index for Japan revised downward to 106.4 in April from the preliminary estimate of 107.2, although it represented an increase from 105.2 in March, the Cabinet Office said Friday.