Canadian Stocks Are Declining As Crude Oil Prices Fall -- Canadian Commentary

(RTTNews) - The Canadian stock market is down in early trade Friday, extending its weakness from the previous trading session. Financial and energy stocks are among the hardest hit sectors this morning. Energy stocks are coming under pressure due to the decrease in crude oil prices.

Markets in Europe are trading solidly to the downside at the end of the trading week. The International Monetary Fund announced yesterday that it has pulled out of talks with Greece, placing the blame on Athens. The creditors are frustrated over Greece's response to its debt crisis. It is up to Greece now to do more to unlock bailout funds before its euro-area bailout package expires on June 30.

Markets in the United States are also trading in the red this morning. An increase in U.S. producer prices has renewed expectations the Federal Reserve will soon raise interest rates. The preliminary read on U.S. consumer sentiment for June also came in stronger than expected.

Producer prices in the U.S. rose by slightly more than anticipated in the month of May, according to a report released by the Labor Department on Friday, with the price growth largely reflecting a substantial rebound in energy prices.

The Labor Department said its producer price index for final demand rose by 0.5 percent in May following a 0.4 percent drop in April. Economists had expected prices to increase by 0.4 percent.

Consumer sentiment in the U.S. has improved by much more than anticipated in the month of June, according to a report released by the University of Michigan on Friday.

The report said the preliminary reading on the consumer sentiment index for June came in at 94.6 compared to the final may reading of 90.7. Economists had expected the index to show a much more modest increase to 91.2.

The benchmark S&P/TSX Composite Index is down 83.57 points or 0.56 percent at 14,747.31.

On Thursday, the index closed down 58.16 points or 0.39 percent, at 14,830.88. The index scaled an intraday high of 14,921.47 and a low of 14,810.66.

The Energy Index is decreasing by 0.82 percent. Crude oil nudged lower Friday morning, clinging to the $60 a barrel mark as the dollar found its footing versus major rivals. OPEC supplies reached the highest level since August 2012 in May, according to the latest oil market report from the International Energy Agency (IEA).

Crescent Point Energy (CPG.TO) is lower by 1.21 percent and Suncor Energy (SU.TO) is falling by 0.76 percent. Encana (ECA.TO) is losing 0.93 percent and Canadian Oil Sands (COS.TO) is down 1.27 percent. Legacy Oil + Gas (LEG.TO) is surrendering 0.78 percent.

Canadian Natural Resources and Cenovus both announced that oil-sands operations have resumed after an Alberta wildfire. Canadian Natural Resources (CNQ.TO) is weakening by 1.47 percent and Cenovus Energy (CVE.TO) is declining by 1.34 percent.

The heavyweight Financial Index is lower by 0.77 percent. Toronto-Dominion Bank (TD.TO) is falling by 0.92 percent and Bank of Nova Scotia (BNS.TO) is losing 1.07 percent. National Bank of Canada (NA.TO) is down 0.81 percent and Royal Bank of Canada (RY.TO) is declining by 0.74 percent. Bank of Montreal (BMO.TO) is lower by 0.91 percent and Canadian Imperial Bank of Commerce (CM.TO) is decreasing by 0.73 percent.

The Diversified Metal and Mining Index is falling by 0.46 percent. Sherritt International (S.TO) is losing 0.86 percent and Lundin Mining (LUN.TO) is down 1.62 percent.

The Capped Materials Index is also down 0.27 percent. Franco-Nevada (FNV.TO) is falling by 0.66 percent and Silver Wheaton (SLW.TO) is losing 0.61 percent. Agrium (AGU.TO) is decreasing by 0.70 percent and Potash Corp. of Saskatchewan (POT.TO) is lower by 0.51 percent.

The Gold Index is climbing by 0.12 percent. Gold prices were flat Friday morning and are set to finish little changed for the week barring a move later in the session.

B2Gold (BTO.TO) is advancing by 2.81 percent and Barrick Gold (ABX.TO) is higher by 0.94 percent.

The Capped Health Care Index is down 0.52 percent. Concordia Healthcare (CXR.TO) is falling by 0.83 percent and Valeant Pharmaceuticals International (VRX.TO) is losing 0.94 percent.

The Capped Telecommunication Services Index is falling by 0.29 percent. Manitoba Telecom Services (MBT.TO) is losing 0.25 percent and TELUS (T.TO) is down 0.46 percent. BCE (BCE.TO) is also declining by 0.62 percent.

On the economic front, Eurozone industrial production grew only marginally in April as energy and consumer goods output remained weak, signaling that economic recovery is set to slow in the second quarter. Industrial production edged up 0.1 percent month-on-month, rebounding from a 0.4 percent fall in March, figures from the Eurostat showed Friday. Economists had expected 0.4 percent growth.

Germany's wholesale prices continued to decline in May, but at a slower pace than in the prior month, figures from Destatis showed Friday. Wholesale prices fell 0.4 percent year-over-year in May, following a 0.9 percent decrease in April. The measure has been falling since July 2013.

U.K. construction output declined unexpectedly in April after rebounding in the prior month, the Office for National Statistics said Friday. Construction output fell 0.8 percent from March when it grew 1.4 percent. Output has so far dropped for three months this year. It was expected to rise 0.1 percent.

In commodities, crude oil futures for July delivery are down $0.67 or 1.10 percent at $60.10 a barrel.

Natural gas for July is down 0.028 or 0.99 at $2.797 per million btu.

Gold futures for August are up $0.80 or 0.07 percent at $1,181.20 an ounce.

Silver for July is down $0.085 or 0.53 percent at $15.875 an ounce.