Canadian Stocks Are Falling On Energy Weakness -- Canadian Commentary

(RTTNews) - The Canadian stock market is down Friday morning, largely due to the pull back in crude oil prices. Investors began to turn cautious yesterday as the highly anticipated meeting of major oil producers in Doha draws near. Disappointing GDP data from China has also contributed to the negative mood among investors.

Crude oil prices are retreating on news that Iranian Petroleum Minister Bijan Zanganeh may not attend the Sunday meeting. Investors are now skeptical about a breakthrough deal to freeze production at January levels.

As Iran has rejected calls to cut production, Saudi Arabia made clear that it won't sign any deal unless other major oil producers, including Iran, participate in the deal.

China's economic growth eased slightly in the first three months of the year amid signs that the momentum in manufacturing, investment and consumer spending was improving, supported by monetary and fiscal stimulus as well as accelerating credit growth.

Gross domestic product grew 6.7 percent year-on-year following a 6.8 percent expansion in the fourth quarter of last year, data from the National Bureau of Statistics showed Friday. The growth figure was in line with economists' expectations. However, the pace of growth was the weakest since 2009.

Markets in Europe have been trading in the red for the majority of Friday's session. The Chinese GDP report and a shrinking Eurozone trade surplus have contributed to the negative mood among investors. Investors continue to play it cautious ahead of the key oil summit this weekend in Doha.

Markets in the United States are also under pressure in early trade Friday. Falling crude oil prices are weighing on the markets ahead of the Doha meeting this weekend.

The benchmark S&P/TSX Composite Index is down 42.65 points or 0.31 percent at 13,625.64.

On Thursday, the index closed down 3.06 points or 0.02 percent, at 13,668.29. The index scaled an intraday high of 13,701.07 and a low of 13,629.59.

The Energy Index is down 2.18 percent. Crude oil prices are falling Friday amid mounting concerns that a deal in Doha to freeze oil output would do little to alleviate the global supply glut.

Cenovus Energy (CVE.TO) is dropping 2.97 percent and Suncor Energy (SU.TO) is declining 1.92 percent. Imperial Oil (IMO.TO) is decreasing 1.11 percent and Crescent Point Energy (CPG.TO) is losing 3.45 percent. Canadian Natural Resources (CNQ.TO) is falling 2.35 percent and Encana (ECA.TO) is weakening by 3.57 percent. Pacific Exploration & Production (PRE.TO) is sinking 5.48 percent and Enbridge (ENB.TO) is lower by 0.84 percent.

The Diversified Metal and Mining Index is weakening by 1.73 percent. First Quantum Minerals (FM.TO) is decreasing 2.23 percent and Teck Resources (TCK-B.TO) is losing 3.65 percent. HudBay Minerals (HBM.TO) is surrendering 3.76 percent and Capstone Mining (CS.TO) is falling 1.85 percent.

The Capped Health Care Index is lower by 0.76 percent. Valeant Pharmaceuticals International (VRX.TO) is losing 0.26 percent and Concordia Healthcare (CXR.TO) is dropping 2.13 percent. Extendicare (EXE.TO) is also down 0.65 percent.

The heavyweight Financial Index is decreasing 0.25 percent. Royal Bank of Canada (RY.TO) is lower by 0.01 percent and Canadian Imperial Bank of Commerce (CM.TO) is losing 0.52 percent. National Bank of Canada (NA.TO) is declining 0.61 percent. Toronto-Dominion Bank (TD.TO) is down 0.02 percent. Bank of Nova Scotia (BNS.TO) is falling 0.64 percent.

The Capped Telecommunication Services Index is falling 0.02 percent. TELUS (T.TO) is declining 0.59 percent and Rogers Communication (RCI-B.TO) is down 0.04 percent.

The Gold Index is advancing 1.41 percent. Gold prices are rising this morning as investors turn cautious ahead of this weekend's meeting of oil producers in Doha.

IAMGOLD (IMG.TO) is increasing 4.37 percent and Royal Gold (RGL.TO) is higher by 1.08 percent. Barrick Gold (ABX.TO) is climbing 1.16 percent and Kinross Gold (K.TO) is gaining 2.74 percent. Yamana Gold (YRI.TO) is up 4.69 percent.

Goldcorp (G.TO) is rising 0.61 percent despite reports of a serious accident at its Marlin mine in Guatemala. Early this morning a worker was trapped underground and is missing. Operations at Marlin mine are suspended.

The Capped Materials Index is also up 0.44 percent. Agnico Eagle Mines (AEM.TO) is increasing 1.12 percent and Silver Wheaton (SLW.TO) is advancing 0.65 percent. Potash Corp. of Saskatchewan (POT.TO) is also rising 0.34 percent.

The Capped Industrials Index is gaining 0.33 percent. Bombardier (BBD-B.TO) is surging 10.46 percent. The Wall Street Journal reported that the company is nearing a deal with Delta Air Lines Inc. on an order for as many as 125 planes.

On the economic front, Statistics Canada reported this morning that Canadian manufacturing sales declined 3.3 percent in February. Economists had expected a drop of only 1.5 percent.

Euro area trade surplus decreased more-than-expected in February, figures from the Eurostat showed Friday. The seasonally adjusted trade surplus declined to EUR 20.2 billion from EUR 22.8 billion in January. Economists had forecast a surplus of EUR 21.5 billion.

British construction output unexpectedly declined in February, marking its second consecutive fall, figures from the Office for National Statistics showed Friday. Construction output fell 0.3 percent from January, when it declined 0.4 percent. Economists were looking for no change. In December, output grew 2.1 percent.

Business activity for New York manufacturers expanded faster than expected in the month of April, according to a report released by the Federal Reserve Bank of New York on Friday.

The New York Fed said its general business conditions jumped to 9.6 in April from 0.6 in March, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to 3.0.

With mining and utilities output showing notable decreases, the Federal Reserve released a report on Friday showing a much bigger than expected drop in U.S. industrial production in the month of March.

The Fed said industrial production fell by 0.6 percent in March, matching the downwardly revised drop reported for February. Economists had expected production to edge down by 0.1 percent compared to the 0.5 percent decrease originally reported for the previous month.

Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of April, the University of Michigan revealed in a report on Friday. The report said the preliminary reading on the consumer sentiment index for April came in at 89.7 compared to the final March reading of 91.0.

The modest decrease came as a surprise to economists, who had expected the consumer sentiment index to inch up to 92.0.

In commodities, crude oil futures for May delivery are down 1.37 or 3.30 percent at $40.13 a barrel.

Natural gas for May is down 0.065 or 3.30 percent at $1.905 per million btu.

Gold futures for June are up $5.20 or 0.42 percent at $1,231.70 an ounce.

Silver for May is up $0.022 or 0.14 percent at $16.195 an ounce.