TSX Ends Lower On Resource Stocks, Rate Hike Worries -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Wednesday, amid speculation of a Federal Reserve rate hike happening sooner than earlier forecast and weighed down by some strong selling in mining and energy stocks with oil prices declining sharply after the OPEC slashed its demand growth forecast for 2015.

Investors appeared quite reluctant to make any significant purchases amid uncertainty over the outlook for the global economy and on likely monetary tightening by the U.S. Federal Reserve.

The overall mood remained cautious as investors continued to weigh the slowing pace of Chinese growth and numerous problems in Europe, besides assessing the likely impact of a Scottish referendum on independence on September 18.

Energy stocks drifted lower, tracking falling crude oil prices. Mining and gold stocks also ended lower, with sluggish bullion prices triggering some selling.

The S&P/TSX Composite Index closed Wednesday at 15,471.89 , down 64.92 points or 0.42 percent. The index scaled a intraday high of 15,536.81 and a low of 15,434.11.

On Tuesday, the index ended up 27.42 points or 0.18% at 15,536.81.

Crude oil ended sharply lower on Wednesday, after an weekly official oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have dropped less than expected last week.

The Energy Information Administration said U.S. crude oil inventories dropped 1.0 million barrels in the week ended September 5, while analysts expected a decline of 1.2 million barrels. Gasoline stocks increased 2.4 million barrels last week, even as analysts anticipated a decline of 0.2 million barrels.

The EIA report showed U.S. crude oil inventories at 358.6 million barrels, end last week.

The Energy Index dropped 0.64 percent, with U.S. crude oil futures for October delivery declining $1.08 or 1.2 percent to close at $91.67 a barrel Wednesday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) inched up 0.03 percent, Enbridge Inc. (ENB.TO) dropped 0.59 percent, Suncor Energy Inc. (SU.TO) shed 1.12 percent, Encana Corp. (ECA.TO) surrendered 2.12 percent, Canadian Natural Resources Limited (CNQ.TO) slipped 0.42 percent, and Bankers Petroleum Ltd. (BNL.TO) fell 2.23 percent.

The Financial Index inched up 0.09 percent, with Toronto-Dominion Bank (TD.TO) up 0.30 percent, Canadian Imperial Bank of Commerce (CM.TO) down 0.15 percent, Royal Bank of Canada (RY.TO) edged up 0.04 percent, National Bank of Canada (NA.TO) added 0.06 percent, and Bank of Nova Scotia (BNS.TO) added 0.22 percent.

Bank of Montreal (BMO.TO) gained 0.07 percent, after having announced earlier that it has lowered its five-year fixed mortgage rate to 2.99 percent, from 3.29 percent.

Sun Life Financial Inc. (SLF.TO) lost 0.41 percent, while Power Corp. of Canada (POW.TO) added 0.38 percent.

Gold futures shed early gains to end lower as global equity markets ticked higher, with the dollar strengthening amid speculation of a Federal Reserve rate hike soon.

Global Gold Index dived 2.24 percent, with gold for December delivery dropping $3.2 or 0.3 percent to close at $1,245.30 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 1.32 percent, B2Gold Corp. (BTO.TO) shed 2.47 percent, Yamana Gold Inc. (YRI.TO) slipped 0.50 percent, Eldorado Gold Corp. (ELD.TO) fell 1.09 percent, and Barrick Gold Corp. (ABX.TO) surrendered 1.08 percent.

The Capped Materials Index shed 1.06 percent mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) inching up 0.08 percent.

The Diversified Metals & Mining Index dropped 0.92 percent, with First Quantum Minerals Ltd. (FM.TO) shedding 1.80 percent, Lundin Mining Corp. (LUN.TO) was down 1.50 percent, Sherritt International Corp. (S.TO) surrendered 3.23 percent, and Teck Resources Limited (TCK.B.TO) fell 2.29 percent.

Meanwhile, Major Drilling Group International Inc. (MDI.TO) fell 1.09 percent and Turquoise Hill Resources Ltd. (TRQ.TO) jumped 5.48 percent.

The Healthcare Index shed 0.48 percent, with Valeant Pharmaceuticals International Inc. (VRX.TO) down 0.43 percent, Catamaran Corporation (CCT.TO) down 1.07 percent, and Extendicare Inc. (EXE.TO) up 0.12 percent.

The Capped Industrial Index dropped 0.73 percent, with Canadian National Railway Company (CNR.TO) down 0.98 percent, SNC-Lavalin Group Inc. (SNC.TO) down 1.27 percent, and Finning International Inc. (FTT.TO) down 0.99 percent. Nevertheless, Bombardier Inc. (BBD.B.TO) added 0.55 percent.

Shares of airliner Air Canada (AC.B.TO) are down 0.91 percent

In economic news from the U.S., a Commerce Department report showed wholesale inventories to have risen by a modest 0.1 percent in July, after inching up by a downwardly revised 0.2 percent in June. Nonetheless, the uptick in inventories fell short the forecast for 0.5 percent increase.