Canadian Stocks Have Slipped Into Negative Territory -- Canadian Commentary

(RTTNews) - The Canadian stock market was up in early trade Thursday, but has pared its gains to the point that it has slipped into the red. The market has been rising since the beginning of the trading week. Energy and financial stocks are trading higher this morning, but weakness in gold, mining and healthcare stocks has pulled the market into negative territory.

Data from Statistics Canada showed that Canada GDP grew 0.6 percent in January, higher than expectations for a 0.3 percent gain. The economy expanded just 0.2 percent in December.

A separate report from Statistics Canada showed that Canadian average weekly employee earnings rose 0.4 percent year over year in January. However, earnings fell 0.7 percent on a month over month basis.

Markets in Europe are trading in the red Thursday. Economic data from Europe painted a mixed picture this morning. German retail sales came in below expectations and euro area inflation held in negative territory for the second month in a row, while U.K. GDP growth was revised up to show 0.6 percent growth in the fourth quarter.

Markets in the United States are struggling to find direction this morning, as they hover around the unchanged level. Traders appear reluctant to make significant moves ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.

The benchmark S&P/TSX Composite Index is down 6.70 points or 0.05 percent at 13,497.28.

On Wednesday, the index closed up 77.75 points or 0.58 percent, at 13,503.98. The index scaled an intraday high of 13,574.99 and a low of 13,475.37.

The Energy Index is up 0.85 percent. Crude oil prices are modestly higher this morning, as investors await Friday's U.S. jobs report.

Encana (ECA.TO) is climbing 2.09 percent and Crescent Point Energy (CPG.TO) is rising 0.83 percent. Canadian Natural Resources (CNQ.TO) is gaining 0.98 percent and Suncor Energy (SU.TO) is higher by 0.73 percent. Cenovus Energy (CVE.TO) is advancing 0.76 percent and Pacific Exploration & Production (PRE.TO) is adding 10.61 percent. Enbridge (ENB.TO) is gaining 0.50 percent and Imperial Oil (IMO.TO) is increasing 0.58 percent.

The heavyweight Financial Index is increasing 0.18 percent. National Bank of Canada (NA.TO) is advancing 0.70 percent and Toronto-Dominion Bank (TD.TO) is climbing 0.09 percent. Bank of Montreal (BMO.TO) is up 0.18 percent and Bank of Nova Scotia (BNS.TO) is adding 0.22 percent.

The Capped Health Care Index is lower by 0.72 percent. Valeant Pharmaceuticals International (VRX.TO) is falling 3.62 percent and Extendicare (EXE.TO) is down 0.53 percent.

The Gold Index is declining 0.58 percent. Gold prices are rising this morning, ahead of tomorrow's U.S. jobs report.

Goldcorp (G.TO) is falling 1.32 percent and Royal Gold (RGL.TO) is lower by 1.60 percent. Barrick Gold (ABX.TO) is surrendering 0.70 percent.

The Capped Materials Index is also down 0.74 percent. Agnico Eagle Mines (AEM.TO) is declining 1.64 percent and Franco-Nevada (FNV.TO) is lower by 1.03 percent. Agrium (AGU.TO) is decreasing 0.69 percent and Potash Corp. of Saskatchewan (POT.TO) is falling 0.62 percent.

Silver Wheaton (SLW.TO) is losing 5.46 percent. The company has entered into an agreement with a syndicate of underwriters, who have agreed to purchase 30,125,000 common shares of Silver Wheaton at US$16.60 per share, or approximately US$500 million.

The Diversified Metal and Mining Index is weakening by 0.88 percent. HudBay Minerals (HBM.TO) is declining 2.87 percent and Lundin Mining (LUN.TO) is down 0.95 percent. Teck Resources (TCK-B.TO) is losing 1.48 percent. The Capped Telecommunication Services Index is losing 0.39 percent. BCE (BCE.TO) is down 0.45 percent and TELUS (T.TO) is weakening by 0.42 percent. Rogers Communication (RCI-A.TO) is also falling 0.65 percent.

The Capped Industrials Index is losing 0.28 percent. Canadian Pacific Railway (CP.TO) is falling 0.94 percent and Canadian National Railway (CNR.TO) is dipping 0.11 percent. Bombardier (BBD-B.TO) is also surrendering 0.76 percent.

The Capped Information Technology Index is slipping 0.30 percent. Sierra Wireless (SW.TO) is losing 2.02 percent and Avigilon (AVO.TO) is falling 0.66 percent. Constellation Software (CSU.TO) is declining 0.93 percent and Descartes Systems Group (DSG.TO) is down 0.24 percent.

On the economic front, Eurozone consumer prices decreased for the second straight month in March on falling energy prices, while core inflation accelerated, offering some relief to the European Central Bank in its attempts to revive inflationary pressures in the 19-nation economy.

Consumer prices fell 0.1 percent in March from a year ago following a 0.2 percent drop in February, flash data from Eurostat showed Thursday. The annual decline matched economists' expectations.

German retail sales declined unexpectedly in February, provisional results from Destatis revealed Thursday. Retail sales slid 0.4 percent month-on-month in February, confounding expectations for a 0.4 percent rise. Sales had fallen 0.1 percent in January.

German unemployment rate held steady in March, the Federal Labor Agency reportedly said Thursday. The unemployment rate came in at 6.2 percent in March, the same as in February, and in line with expectations. This was the lowest since German reunification.

Germany's unemployment rate held steady in February, preliminary figures from Destatis showed Thursday. The jobless rate came in at an adjusted 4.3 percent in February, the same rate as in the previous month. In the corresponding month last year, the unemployment rate was 4.8 percent.

French consumer spending grew more than expected in February, figures from the statistical office Insee revealed Thursday. Household consumption expenditure grew 0.6 percent month-on-month, bigger than an expected 0.2 percent rise. Nonetheless, it was slower than January's 1 percent increase.

France's consumer prices decreased in March at the same pace seen in the previous month, largely due to the slump in energy prices, marking the second straight month of decline, preliminary data from the statistical office INSEE showed Thursday.

The flash consumer price index dropped 0.2 percent year-on-year, same as in February, when prices fell for the first time in eleven months. Economists were looking for a 0.1 percent drop.

The U.K. economy expanded more than previously estimated in the fourth quarter, a detailed report from the Office for National Statistics showed Thursday.

Gross domestic product climbed 0.6 percent in the fourth quarter from prior three months, which was revised up from 0.5 percent estimated on February 25. This was the 12th consecutive quarter of positive growth since early 2013.

Consumer confidence in the United Kingdom was largely unchanged in March, the latest survey from GfK revealed on Thursday with an index score of 0. That was unchanged from the February reading, and it beat forecasts for a score of -1.

A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report on Thursday showing that initial jobless claims rose by more than expected in the week ended March 26th.

The Labor Department said initial jobless claims climbed to 276,000, an increase of 11,000 from the previous week's unrevised level of 265,000. Economists had expected jobless claims to inch up to 266,000.

After reporting an unexpected contraction in Chicago-area business activity last month, MNI Indicators released a report on Thursday showing a bigger than expected rebound by its Chicago business barometer in the month of March.

MNI Indicators said its Chicago business barometer jumped to 53.6 in March from 47.6 in February, with a reading above 50 indicating growth. Economists had expected the index to rise to 50.3.

In commodities, crude oil futures for April delivery are up 0.58 or 1.51 percent at $38.90 a barrel.

Natural gas for April is up 0.025 or 1.25 percent at $2.021 per million btu.

Gold futures for April are up $9.30 or 0.76 percent at $1,237.90 an ounce.

Silver for May is up $0.254 or 1.67 percent at $15.465 an ounce.