TSX Ends Lower On Declining Oil Prices, Greek Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Friday, tracking declining global equity markets amid concerns over the breakdown of Greece's talks with its international creditors. The decline was driven by energy stocks as crude oil prices continued to tumble, with financial and healthcare shares also taking a hit.

Markets in Europe closed solidly to the downside at the end of the trading week, with Greece's negotiations with its creditors fizzling out.

Investors mulled over the developments in Europe, with the International Monetary Fund pulling out of talks with Greece, blaming Athens for the lack of progress. Greece's international creditors remain frustrated over the governments response to its debt crisis, with the onus now on the beleaguered country to do more to unlock bailout funds before its euro-area bailout package expires on June 30.

With the repayment deadline looming at the month end, the lack of progress in the talks has led to renewed worries about a possible default by Greece.

Markets in the United States also ended in the red, with mounting expectation of an imminent rate hike sooner than later and worries over Greece. With the repayment deadline looming at the end of June, the lack of progress in the talks has led to renewed worries about a possible default by Greece.

An increase in U.S. producer prices and a strong, better than expected U.S. consumer sentiment reading for June has renewed expectations the Federal Reserve will soon raise interest rates.

Producer prices in the U.S. rose slightly more than anticipated in May with the price growth largely reflecting a substantial rebound in energy prices.

Consumer sentiment in the U.S. also improved much more than anticipated in June, due partly to a notable improvement in the assessment of current conditions, with the current economic conditions index jumping to 106.8 in June from 100.8 in May

The benchmark S&P/TSX Composite Index closed Friday at 14,741.15, down 89.73 points or 0.61 percent. The index scaled an intraday high of 14,798.31 and a low of 14,725.25.

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.

Crude oil futures ended lower after the Organization of the Petroleum Exporting Countries continued to raise output levels even as U.S. stocks start to drop, amid a weak dollar. OPEC supplies reached the highest level since August 2012 in May, according to the latest oil market report from the International Energy Agency (IEA).

The Energy Index fell 1.77 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, dropping $0.81 or 1.3 percent, to settle at $59.96 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Suncor Energy Inc. (SU.TO) fell 2.03 percent, while Crescent Point Energy Corp. (CPG.TO) shed 1.28 percent. Encana Corp. (ECA.TO) slipped 1.92 percent, and Enbridge Inc. (ENB.TO) dropped 1.36 percent.

Canadian Oil Sands Limited (COS.TO) shed 3.13 percent, while Pacific Rubiales Energy Corp. (PRE.TO) added 0.18 percent.

Cenovus Energy Inc. (CVE.TO) dropped 1.93 percent, while Canadian Natural Resources Limited (CNQ.TO) fell 3.82 percent. Both companies announced that oil-sands operations have resumed after an Alberta wildfire.

Gold futures settled lower after some upbeat economic data from the U.S. with producer prices and consumer sentiment rising more than expected, even as the dollar weakened.

The Gold Index declined 0.62 percent, with gold for August delivery shedding $1.20 or 0.1 percent to settle at $1,179.20 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.67 percent, Barrick Gold Corp. (ABX.TO) fell 0.07 percent, and Kinross Gold Corp. (K.TO) dived 4.30 percent. IAMGOLD Corp. (IMG.TO) added 0.35 percent, while Eldorado Gold Corp. (ELD.TO) surrendered 3.19 percent. Detour Gold Corp. (DGC.TO) added 0.27 percent.

The Capped Materials Index slipped 0.44 percent, with Agrium Inc. (AGU.TO) up 0.24 percent, Agnico Eagle Mines Limited (AEM.TO) down 0.78 percent. Franco-Nevada Corp. (FNV.TO) slipped 0.66 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 0.16 percent.

The Diversified Metals & Mining Index fell 0.31 percent, as First Quantum Minerals Ltd. (FM.TO) gained 2.28 percent, Lundin Mining Corp. (LUN.TO) dived 2.34 percent, and Teck Resources (TCK.B.TO) dropped 1.83 percent.

The heavyweight Financial Index shed 0.47 percent, as Royal Bank of Canada (RY.TO) gained 0.06 percent, National Bank of Canada (NA.TO) dipped 0.29 percent, and Bank of Montreal (BMO.TO) dropped 0.48 percent.

Bank of Nova Scotia (BNS.TO) fell 0.44 percent, while Toronto-Dominion Bank (TD.TO) dived 1.03 percent. Canadian Imperial Bank of Commerce (CM.TO) edged down 0.05 percent.

The Capped Health Care Index dived 1.02 percent as Valeant Pharmaceuticals International (VRX.TO) fell 1.64 percent, Extendicare Inc. (EXE.TO) dropped 0.70 percent, and Concordia Healthcare Corp. (CXR.TO) surrendered 1.60 percent. Catamaran Corp. (CCT.TO) gained 0.55 percent.

The Capped Industrials Index edged down 0.04 percent, as Bombardier Inc. (BBD-A.TO) fell 0.39 percent and Finning International Inc. (FTT.TO) added 2.50 percent.

The Information Technology Index gained 0.39 percent, after Sierra Wireless, Inc. (SW.TO) added 0.60 percent and Descartes Systems Group Inc. (DSG.TO) gathered 2.24 percent. BlackBerry Inc. (BB.TO) added 0.71 percent, while Constellation Software Inc. (CSU.TO) fell 0.31 percent.

The Capped Telecommunication Index dropped 0.22 percent, as Rogers Communications Inc. (RCI.B.TO) edged up 0.31 percent, TELUS Corp. (T.TO) dropped 0.58 percent, and BCE Inc. (BCE.TO) fell 0.37 percent.

On the economic front, producer prices in the U.S. rose slightly more than anticipated in May, with the price growth largely reflecting a substantial rebound in energy prices, a report from the Labor Department showed Friday. Producer price index for final demand rose by 0.5 percent in May following a 0.4 percent drop in April. Economists expected prices to increase by 0.4 percent.

Consumer sentiment in the U.S. improved much more than anticipated in June, a report from the University of Michigan said Friday. A preliminary reading on the consumer sentiment index for June came in at 94.6 compared to the final May reading of 90.7. Economists expected the index to increase modestly to 91.2.

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.