TSX Ends Lower Tracking Declining Global Markets -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a seventh straight session on Monday, tracking declining global equity markets after Chinese stocks plummeted over eight percent, sparking renewed fears of a stalling global economy.

Almost all sectors of the Canadian market ended lower, with the exception of gold and health care stocks. Continued weakness in crude oil prices weighed on the market, while gold prices rebounded to give a boost to gold stocks.

Markets in Europe ended firmly in negative territory, while the U.S. markets are also ended in negative territory. The weak performance of the Chinese stock market soured the mood among investors. The Shanghai stock exchange declined a near 8.5 percent for a second straight session of losses, making it the worst daily percentage decline since February 27, 2007.

Investors also playing it cautious ahead of the Federal Reserve policy meeting this week.

The Fed is widely expected to leave interest rates unchanged when its concludes its 2-day meeting on Wednesday. Traders are likely to keep a close eye on the accompanying statement for any hints about the timing of the first rate hike.

In economic news, a Commerce Department report on Monday showed durable goods orders in the U.S. rebounded strongly in June, after reporting a sharp drop in new orders for manufactured durable goods in the previous month.

The benchmark S&P/TSX Composite Index closed Monday at 14,001.37, down 184.87 points or 1.30 percent. The index scaled an intraday high of 14,112.13 and a low of 13,956.05.

On Friday, the index closed down 79.13 points or 0.55 percent, at 14,486.24. The index scaled an intraday high of 14,275.47 and a low of 14,145.27.

Gold futures rebounded to end higher as the dollar trended lower against a basket of major currencies and on safe haven demand after world wide equity markets declined.

The Gold Index plunged 4.04 percent, although gold for August delivery gained $10.90 or 1.0 percent, to settle at $1,096.40 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Kinross Gold Corp. (K.TO) shed 0.90 percent, Goldcorp Inc. (G.TO) plunged 5.42 percent, and Yamana Gold Inc. (YRI.TO) dived 4.87 percent.

IAMGOLD Corp. shed 4.42 percent, while Royal Gold, Inc. (RGL.TO) fell 2.69 percent. B2Gold Corp. (BTO.TO) plunged 8.00 percent, while Lake Shore Gold Corp. (LSG.TO) shed 4.35 percent. Barrick Gold Corp. (ABX.TO) dropped 5.17 percent.

The Capped Materials Index plummeted 3.11 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) fell 1.55 percent, Agrium Inc. (AGU.TO) dipped 1.87 percent, and Agnico Eagle Mines Limited (AEM.TO) dropped 4.41 percent.

Crude oil futures ended lower for a fourth day, on supply glut worries and demand growth concerns after global equity markets ended deeply in the red.

The Energy Index dived 2.81 percent, with U.S. crude oil futures for September delivery, the most actively traded contract, plunging $0.75 or 1.6 percent, to settle at $47.39 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) fell 1.09 percent, while Pacific Rubiales Energy Corp. (PRE.TO) shed 5.37 percent. Crescent Point Energy Corp. (CPG.TO) dropped 5.40 percent, while Enbridge Inc. (ENB.TO) slipped 1.01 percent.

Encana Corp. (ECA.TO) fell 5.75 percent, while Canadian Oil Sands Limited (COS.TO) dropped 3.71 percent.

The Diversified Metals & Mining Index plummeted 3.64 percent, as First Quantum Minerals Ltd. (FM.TO) dived 3.75 percent, HudBay Minerals (HBM.TO) fell 4.06 percent.

Sherritt International (S.TO) plummeted 11.76 percent, while Lundin Mining Corp. (LUN.TO) added 1.90 percent. Teck Resources Limited (TCK-B.TO) fell 4.75 percent.

The heavyweight Financial Index dived 1.54 percent, as National Bank of Canada (NA.TO) dropped 1.93 percent, Bank of Montreal (BMO.TO) dropped 1.46 percent, and Royal Bank of Canada (RY.TO) surrendered 1.43 percent.

Canadian Imperial Bank of Commerce (CM.TO) dropped 1.44 percent, Bank of Nova Scotia (BNS.TO) declined 1.99 percent, and Toronto-Dominion Bank (TD.TO) dropped 1.68 percent.

The Capped Health Care Index inched up 0.13 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 3.30 percent, Extendicare Inc. (EXE.TO) fell 1.40 percent, and Concordia Healthcare Corp. (CXR.TO) fell 1.39 percent.

The Capped Information Technology Index dropped 1.29 percent, as BlackBerry Limited (BB.TO) dropped 3.52 percent and Descartes Systems Group (DSG.TO) dropped 1.30 percent.

Constellation Software Inc. (CSU.TO) inched up 0.18 percent. The company has agreed to acquire CAE's mining division, known as Datamine. CAE (CAE.TO) is also down 1.77 percent.

The Capped Telecommunication Index fell 0.91 percent, as Rogers Communication (RCI-B.TO) gained 0.79 percent, TELUS Corp. (T.TO) fell 0.48 percent, Manitoba Telecom Services Inc. (MBT.TO) fell 1.77 percent, and BCE Inc. (BCE.TO) shed 0.94 percent.

The Capped Industrials Index surrendered 0.95 percent, as Canadian Pacific Railway Limited (CP.TO) added 1.54 percent and Canadian National Railway Company (CNR.TO) fell 0.54 percent.

Bombardier Inc. (BBD-B.TO) ended the day at $1.78, at par with its previous close. Bombardier Transportation was awarded a 30-year vehicle maintenance contract valued at approximately C$403 million by the Crosslinx Transit Solutions Maintenance General Partnership.

First Majestic Silver Corp. (FR.TO) tanked 14.10 percent, after agreeing to acquire Silvercrest Mines for C$1.30 per share.

Carmanah Technologies Corp. (CMH.TO) added 1.32 percent. The company announced that it will reinstate a tax asset totaling approximately US$11.0 million.

Capital Power (CPX.TO)fell 0.09 percent, after declaring a dividend of $0.365 per share.

Restaurant Brands International (QSR.TO) gained 3.85 percent. The parent company of Tim Horton's and Burger King, reported its revenue rose nearly 12 percent to $1.04 billion.

On the economic front, a Commerce Department report on Monday showed new orders for U.S. manufactured durable goods to have jumped 3.4 percent in June following a revised 2.1 percent decrease in May. Economists expected orders to increase by 3.1 percent compared to the 2.2 percent drop reported for the previous month.

Germany's business morale unexpectedly improved in July after concerns due to the uncertainty regarding Greece and its future in euro eased, results of a key survey revealed Monday.

The Ifo Business Climate Index for German trade and industry rose to 108 from June's revised 107.5, a four month-low. Economists expected the measure to edge up a point from June's 107.4 original score.

Germany's import prices declined at a faster-than-expected pace in June, data from Destatis showed Monday. Import prices slid 1.4 percent year-over-year in June, just above economists' expectations for a 1.3 percent decrease. In May, prices had fallen 0.8 percent.

U.K. factory order growth slowed in July to its lowest level in two years, as a strong sterling and weak global conditions weighed on the export outlook, survey data from the Confederation of British Industry showed Monday. The total order book balance dropped to -10 percent in July, which was the lowest since July 2013 when it was -12 percent. Economists expected a balance figure of -7.