Canadian Stocks Are Falling As Crude Rally Stalls - Canadian Commentary

(RTTNews) - The Canadian stock market has been losing ground since the open of trade Friday. The majority of the Canadian sectors are mired in negative territory this morning. The energy sector is logging the largest decrease as the rally in crude oil prices earlier this week appears to be sputtering out.

Markets in Europe are trading solidly to the downside Friday. The markets were relatively flat during the first few hours of the day, but have since steadily declined.

Markets in the United States are slightly lower in early trade Friday. The lack of any major U.S. economic data is keeping investors on the sidelines this morning.

The benchmark S&P/TSX Composite Index is falling 100.31 points or 0.66 percent at 15,164.33.

On Thursday, the index closed up 19.93 points or 0.13 percent, at 15,264.64. The index scaled an intraday high of 15,319.22 and a low of 15,224.77.

The Energy Index is falling 1.38 percent. Crude oil prices are falling Friday morning ahead of a closely-watched OPEC meeting and the U.S. rig count.

Suncor Energy (SU.TO) is losing 0.75 percent and Canadian Natural Resources (CNQ.TO) is weakening by 2.57 percent. Enbridge (ENB.TO) is lower by 0.95 percent and Imperial Oil (IMO.TO) is decreasing 1.84 percent. Cenovus Energy (CVE.TO) is declining 2.19 percent and Crescent Point Energy (CPG.TO) is surrendering 1.81 percent.

Husky Energy (HSE.TO) reported its net loss narrowed to $93 million last quarter, but results were short of estimates. Shares are falling 2.60 percent.

Encana Corp (ECA.TO) is climbing 1.73 percent after it posted a quarterly profit compared with a loss a year earlier, despite lower production.

The heavyweight Financial Index is decreasing 0.62 percent. Canadian Imperial Bank of Commerce (CM.TO) is weakening by 0.48 percent and Bank of Montreal (BMO.TO) is slipping 0.37 percent. Royal Bank of Canada (RY.TO) is falling 0.64 percent and Toronto-Dominion Bank (TD.TO) is down 0.49 percent. National Bank of Canada (NA.TO) is declining 0.28 percent and Bank of Nova Scotia (BNS.TO) is surrendering 0.72 percent.

The Capped Industrials Index is down 0.53 percent. Canadian National Railway (CNR.TO) is lower by 0.85 percent and Canadian Pacific Railway (CP.TO) is falling 0.01 percent. Finning International (FTT.TO) is losing 1.28 percent and Air Canada (AC.TO) is declining 1.76 percent.

The Capped Information Technology Index is losing 0.54 percent. Constellation Software (CSU.TO) is weakening by 0.97 percent and Sierra Wireless (SW.TO) is declining 1.50 percent. Descartes Systems Group (DSG.TO) is dropping 0.39 percent and BlackBerry (BB.TO) is down 1.49 percent.

The Capped Healthcare Index is lower by 0.40 percent. Valeant Pharmaceuticals International (VRX.TO) is weakening by 0.99 percent and Concordia International (CXR.TO) is down 1.56 percent. Extendicare (EXE.TO) is also slipping 0.30 percent.

The Capped Telecommunication Services Index is down 0.22 percent. TELUS (T.TO) is decreasing 0.55 percent. BCE (BCE.TO) is falling 0.75 percent.

The Capped Materials Index is down 0.40 percent. Franco-Nevada (FNV.TO) is falling 1.13 percent and Agrium (AGU.TO) is losing 0.86 percent. Potash Corp. of Saskatchewan (POT.TO) is lower by 1.19 percent.

The Gold Index is declining 0.08 percent. Gold prices are up slightly Friday morning on a relatively uneventful day.

IAMGOLD (IMG.TO) is falling 0.61 percent and Eldorado Gold (ELD.TO) is weakening by 2.19 percent. Goldcorp (G.TO) is losing 0.12 percent and Barrick Gold (ABX.TO) is declining 1.12 percent.

On the economic front, data from Statistics Canada showed that consumer price index was flat on a seasonally adjusted monthly basis, following a 0.2 percent slide in May. Economists were looking for a 0.1 percent drop.

Core CPI, excluding food and energy, rose 0.2 percent on a seasonally adjusted monthly basis, from a 0.1 percent gain last month.

Retail sales increased for the third consecutive month, rising 0.6 percent to $48.9 billion in May.

This exceeded forecasts for a 0.3 percent uptick and follows a downwardly revised 0.7 percent increase in April.

Core retail sales, excluding motor vehicle and parts dealers, dropped 0.1 percent month-on-month in May, compared to a downwardly revised 1.3 advance in the previous month. The index was forecast to be flat.

The UK budget deficit widened more-than-expected in June as debt interest increased notably after inflation lifted the cost of index-linked bonds.

Public sector net borrowing, excluding interventions, increased by GBP 2.0 billion from a year ago to GBP 6.9 billion in June, data from the Office for National Statistics showed Friday. The expected figure was GBP 4.9 billion.

In commodities, crude oil futures for August delivery are down 0.77 or 1.64 percent at $46.15 a barrel.

Natural gas for August is down 0.026 or 0.85 percent at $3.017 per million btu.

Gold futures for August are up 4.60 or 0.37 percent at $1,250.10 an ounce.

Silver for September is up 0.08 or 0.49 percent at $16.425 an ounce.