TSX Ends Lower On Global Concerns - Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Monday, driven by heavy selling in financial and mining stocks amid uncertainties over the outlook for the global economy. Investor sentiments also dipped over concerns over the ongoing conflict in the Middle East and news about clashes between police and pro-democracy protesters in Hong Kong.

Investors mulled over a mixed batch of U.S. economic data including a report showing consumer spending to have risen more than expected in August. A weak report on eurozone economic confidence and sluggish commodity prices also weighed as well.

A report from the National Association of Realtors showed pending home sales in the U.S. to have dipped more than expected in August, somewhat offset with personal spending rising more than expected in August.

The S&P/TSX Composite Index closed Monday at 14,976.92, down 49.85 points or 0.33 percent. The index scaled a intraday high of 15,011.88 and a low of 14,853.64.

On Friday, Canadian stocks rebounded from a five-day loss to end higher on Friday, lifted by some upbeat economic news with the U.S. gross domestic product rising more than previously estimated in the second quarter.

Crude oil ended sharply higher after data from the U.S. showed consumer spending to have risen more than expected in August. Prices also found support and over the upcoming temporary refinery closures to prepare for the winter. Prices were also under pressure after some unplanned refinery shutdowns in Canada and the U.S.

The Energy Index added 0.41 percent, with U.S. crude oil futures for November delivery gaining $1.01 or 1.1 percent to close at $93.54 a barrel Friday on the Nymex.

Encana Corp. (ECA.TO) gained 1.99 percent, after signing a definitive agreement to buy Texas-based Athlon Energy Inc. (ATHL) in an all-cash tender offer for $5.93 billion. Encana will also assume Athlon's $1.15 billion of senior notes, resulting in a total transaction value of approximately $7.1 billion.

Among other energy stocks, Cenovus Energy Inc. (CVE.TO) down 0.79 percent, Suncor Energy Inc. (SU.TO) shed 1.06 percent, Talisman Energy Inc. (TLM.TO) dropped 1.71 percent, and Canadian Natural Resources Limited (CNQ.TO) lost 0.63 percent.

Enbridge Inc. (ENB.TO) gained 1.36 percent, while TransCanada Corp. (TRP.TO) added 0.48 percent.

The Financial Index dived 0.71 percent, with Toronto-Dominion Bank (TD.TO) down 0.87 percent, Canadian Imperial Bank of Commerce (CM.TO) down 1.72 percent, Royal Bank of Canada (RY.TO) down 1.08 percent, Bank of Nova Scotia (BNS.TO) down 0.25 percent, and Bank of Montreal (BMO.TO) down 0.52 percent. National Bank of Canada (NA.TO) down 1.05 percent.

Gold futures ended higher on Monday, on some safe haven demand after the dollar trended lower on some mixed economic data from the U.S.

The Global Gold Index shed 1.05 percent, with gold for December delivery adding $3.40 or 0.3 percent to settle at $1,218.80 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Barrick Gold Corp. (ABX.TO) dropped 1.76 percent, Yamana Gold Inc. (YRI.TO) dropped 2.58 percent, B2Gold Corp. (BTO.TO) up 0.44 percent, Eldorado Gold Corp. (ELD.TO) fell 1.17 percent, and Goldcorp Inc. (G.TO) surrendered 0.80 percent.

The Capped Materials Index declined 1.01 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.66 percent.

The Diversified Metals & Mining Index fell 1.68 percent, with First Quantum Minerals Ltd. (FM.TO) down 1.27 percent, Lundin Mining Corp. (LUN.TO) down 1.76 percent, and Teck Resources Limited (TCK.B.TO) down 1.95 percent.

The Capped Industrial Index added 0.12 percent, with Bombardier Inc. (BBD.B.TO) adding 3.03 percent, . SNC-Lavalin Group Inc. (SNC.TO) down 0.44 percent, and CAE Inc. (CAE.TO) down 0.89 percent, respectively.

The Information Technology Index fell 0.15 percent, with smartphone maker BlackBerry Limited (BB.TO) dipping 0.17 percent.

The Healthcare Index dropped 0.15 percent, with Extendicare Inc. (EXE.TO) up 0.73 percent and Catamaran Corporation (CCT.TO) down 1.57 percent.

Valeant Pharmaceuticals International, Inc. (VRX.TO) added 0.25 percent, as Allergan, Inc. (AGN) on Monday reiterated its decision on the hostile acquisition offer made by Valeant, while indicating the offer as grossly inadequate and substantially undervalues Allergan remains unchanged.

The Telecom Index added 0.37 percent with Rogers Communications Inc. (RCI.B.TO) down 2.15 percent and BCE Inc. (BCE.TO) up 1.32 percent.

The Consumer Discretionary Staples moved up 0.36 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) up 1.32 percent, Maple Leaf Foods Inc. (MFI.TO) up 1.11 percent, and Magna International Inc. (MG.TO) down 2.36 percent.

In economic news from the U.S., data from the National Association of Realtors showed pending home sales to have pulled back much more than expected in August, falling 1.0 percent to 104.7, from 105.8 in July. Economists expected pending home sales to drop by about 0.5 percent.

A report from the U.S. Commerce Department said consumer spending was up by a more than expected 0.5 percent in August. Economists expected spending to increase by about 0.4 percent compared to the 0.1 percent drop originally reported for the previous month.

Meanwhile, personal income rose by an expected 0.3 percent in August after edging up by 0.2 percent in July.

In economic news from the eurozone, survey results from the European Commission showed economic confidence index to have slipped below its long-term average of 100 in September, dropping to 99.9, from 10.6 in August.

Meanwhile, German consumer price inflation remained stable at 0.8 percent in September, preliminary data from Destatis showed Monday. This was the lowest since February 2010, when prices climbed 0.5 percent and matched economists' expectations.

Several first-tier economic data are scheduled for release in the unfolding week, including the Labor Department's non-farm payrolls report for September.

ADP's private payrolls data for September, and the results of the Institute for Supply Management's manufacturing survey are also among the highly anticipated releases. Traders expect the data will be generally positive, putting further pressure on the Federal Reserve to raise interest rates ahead of schedule.