TSX Ends Lower On Soft China Data - Canadian Commentary

(RTTNews) - Canadian stocks ended lower Friday, as investors weighed some soft service data from China, led mostly by mining and energy stocks, with mixed cues from global equity markets.

China's non-manufacturing business activity index fell to a four-month low in December, added to its easing manufacturing activity woes yesterday, which suggests that the world's second largest economy continues to be under pressure amid its ongoing economic reforms.

China's official non-manufacturing Purchasing Managers' Index fell to 54.6 in December from 56.0 in November due to a slowdown in the construction and service sectors, a report from China Federation of Logistics and Purchasing showed..

Asian stocks ended lower as investors continued with profit taking, despite some encouraging data out of Europe and the US, while the European markets ended on a high.

Meanwhile, Federal Reserve Chairman Ben Bernanke on Friday offered a vigorous defense of unprecedented measures taken under his watch to spur the U.S. economy after the worst recession in decades. Bernanke will step down as Fed chair later this month, to be replaced be current Vice Chairman Janet Yellen.

The S&P/TSX Composite Index closed Friday at 13,548.86, down 45.33 points or 0.33 percent. The index scaled an intraday high of 13,594.19 and a low of 13,521.75.

Crude oil plummeted on easing supply concerns after reports that Libyan oil production and export would be back to normal, with the dollar trading higher against a basket of major currencies. Investors largely ignored the official U.S. crude oil stockpile weekly report that showed a more-than-expected decline in crude inventories.

The Energy Index dropped 0.63 percent, with U.S. crude oil futures for February delivery, the most actively traded contract, shedding $1.48 or 1.5 percent to close at $93.96 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 0.91 percent, while Suncor Energy Inc. (SU.TO) lost 0.57 percent. Talisman Energy Inc. (TLM.TO) shed 0.64 percent, while Encana Corp. (ECA.TO) dropped 1.32 percent.

The Information Technology Index inched up 0.17 percent, with smartphone maker BlackBerry Limited (BB.TO) down 1.46 percent.

The Diversified Metals & Mining Index slipped 1.43 percent, Teck Resources Limited (TCK.B.TO) down 2.50 percent. First Quantum Minerals Ltd. (FM.TO) edged up 0.16 percent, while Lundin Mining Corp. (LUN.TO) gained 0.22 percent.

The Capped Materials Index dropped 1.00 percent, with fertilizer giant Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.97 percent.

Gold futures ended sharply higher Friday, on continued bargain hunting with some soft service data out of China supporting the precious metal.

The Global Gold Index slipped 1.03 percent, with gold futures for February delivery, the most actively traded contract, gaining $13.40 or 1.1 percent to close at $1,225.20 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) gained 0.21 percent, while Barrick Gold Corp. (ABX.TO) dropped 1.18 percent. Yamana Gold Inc. (YRI.TO) slipped 1.48 percent.

The Financial Index dropped 0.18 percent with Bank of Montreal (BMO.TO) gaining 0.44 percent, Royal Bank of Canada (RY.TO) down 0.28 percent, the Bank of Nova Scotia (BNS.TO) down 0.83 percent, and Toronto-Dominion Bank (TD.TO) losing 0.02 percent.

The Capped Industrials Index dipped 0.65 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) shedding 0.22 percent.

Rail road company Canadian Pacific Railway (CP.TO), edged up 0.05 percent after selling the west end of its Dakota, Minnesota & Eastern line to Genesee & Wyoming Inc. (GWR) for continued rail operations, at about $210 million.

Drug maker Aeterna Zentaris Inc. (AEZ.TO) gathered about 1 percent after announcing the appointment of Richard Sachse as Chief Scientific Officer.

In economic news, eurozone broadest measure of money supply grew at a slightly faster pace in November, data from the European Central Bank showed. The annual growth rate of M3 was 1.5 percent in November compared with 1.4 percent in October. The annual growth rate of M1 stood at 6.5 percent in November.

Elsewhere, U.K. mortgage approvals increased for the ninth consecutive month in November, the Bank of England said. The number of loans approved for house purchases was 70,758 in November, up from 68,029 in October. Approvals also exceeded the 69,700 level forecast by economists.