Canadian Stocks Plunge To 4-Month Low -- Canadian Commentary

(RTTNews) - Canadian stocks are sliding Thursday morning, extending recent losses, amid rising concerns about the global economy.

Falling crude oil prices and lingering geopolitical worries amid the ongoing unrest in Hong Kong and the situation in the Middle East are also weighing on the markets.

Meanwhile, concerns about the outlook for U.S. interest rates have risen this morning following a report from the U.S. Labor Department showing an unexpected drop in initial jobless claims.

Financial, energy, mining and technology stocks are drifting lower. The benchmark S&P/TSX Composite Index is down 176.82 points or 1.19 percent at 14,628.62, after having declined to 14,607.39, its lowest level since 2 June 2014.

On Wednesday, the index closed down 155.07 points or 1.04 percent at 14,805.44, after scaling a intraday high of 14958.50 and a low of 14,764.02.

The Financial Index is lower by over 1 percent. Among big six banks, National Bank of Canada (NA.TO) is modestly higher, while the rest are down in negative territory, losing between 0.8 percent and 2 percent.

The Diversified Metals & Mining Index is down 1.8 percent. Nevsun Resources Ltd. (NSU.TO) is declining 3.3 percent, Lundin Mining Corporation (LUN.TO) is lower by 2.6 percent, Teck Resources Limited (TCK.B.TO) is down 2.3 percent, HudBay Minerals Inc. (HBM.TO) is down 2 percent and First Quantum Minerals Ltd. (FM.TO) is down with a loss of 1.6 percent.

Among gold stocks, Silver Wheaton Corp. (SLW.TO) is declining 1.5 percent, Barrick Gold Corporation (ABX.TO) is lower by 0.7 percent and Franco-Nevada Corporation (FNV.TO) is down 0.8 percent, while Agnico Eagle Mines Limited (AEM.TO) is rising 2.7 percent and Goldcorp Inc. (G.TO) is moving up 0.5 percent. Yamana Gold Inc. (YRI.TO) and Torex Gold Reserves (TXG.TO) are up 1.2 percent and 2.7 percent, respectively.

The Energy Index is down more than 2 percent, with Suncor Energy Inc. (SU.TO), Canadian Natural Resources Limited (CNQ.TO), Crescent Point Energy Corp. (CPG.TO), Canadian Oil Sands Limited (COS.TO), ARC Resources Ltd. (ARX.TO), Talisman Energy Inc. (TLM.TO) and Husky Energy Inc. (HSE.TO) declining 1.5 to 3 percent.

Among other losers in the oil sector, Surge Enegy (SGY.TO) is down over 5 percent, Whitecap Resources Inc. (WCP.TO) is declining 2.3 percent, Legacy Oil + Gas Inc. (LEG.TO) is down 4.4 percent and Bankers Petroleum Ltd. (BNK.TO) is down over 7 percent.

The Healthcare Index is lower by nearly 2 percent, led by Valeant Pharmaceuticals International, Inc. (VRX.TO), which is down over 3.5 percent. Extendicare Inc. (EXE.TO) and Catamaran Corporation (CCT.TO) are down 1.6 percent and 0.6 percent, respectively.

The Information Technology Index is down over 1 percent. Wi-LAN Inc. (WIN.TO) is plunging over 13 percent after the company said the U.S. District judge declared that Wi-LAN's accusations against Apple infringing on its patents were invalid.

BlackBerry Limited (BB.TO) is declining more than 4 percent, Avigilon Corporation (AVO.TO) is down nealy 3 percent, Descartes Systems Group Inc. (DSG.TO) is lower by 2.5 percent, Sierra Wireless, Inc. (SW.TO) is down 2.1 percent and Celestica Inc. (CLS.TO) is down 1.7 percent.

Sears Canada Inc. (SCC.TO) is down nearly 1 percent after Sears Holdings Corp. (SHLD) announced that it expects to generate up to US$380 million in proceeds from its interest in Sears Canada, by early November 2014.

Agrium Inc. (AGU.TO) is declining nearly 4 percent. The company said on Wednesday that it expects third quarter earnings from continuing operations to be in the range of US$0.45 to US$0.55 per share.

Bell Aliant Regional Communications Inc. (BA.TO) is up marginally after Canada's competition watchdog said the company has agreed to a long-term lease of a significant part of its landline network to Bragg Communications Inc.'s Eastlink, aiming to win approval for the acquisition of O.N. Tel Inc.

In commodities, crude oil futures for November are down $0.75 or 0.82 percent at $89.98 a barrel, after declining to a low of $88.20.

Natural gas for November is down $0.090 or 2.25 percent at $3.933 per million btu.

Gold futures for December are up $0.40 or 0.03 percent at $1,215.90 an ounce.

Silver for December is down $0.184 or 1.08 percent at $17.075 an ounce. Meanwhile, copper is down $0.051 or 1.62 percent at $2.985 per pound.

The report from U.S. Labor Department, released before trading commenced this morning, showed that initial jobless claims fell to 287,000 in the week ended September 27th, a decrease of 8,000 from the previous week's revised level of 295,000.

According to data released by the U.S. Commerce Department later in the morning, factory orders pulled back by a little more than expected 10.1 percent in August, after having jumped 10.5 percent in July.

The European Central Bank today left its refinancing rate at a record low of 0.05 percent and the deposit rate at - 0.20 percent, in line with expectations, after reducing them in a surprise move last month. The marginal lending rate too has been maintained at 0.30 percent.