Canadian Stocks Are Falling As Crude Prices Retreat -- Canadian Commentary

(RTTNews) - The Canadian stock market is losing ground in early trade Friday, following four straight sessions of gains. Crude oil prices have fallen back below $30 a barrel this morning, as hopes for a deal on production limits between Iran and Saudi Arabia begin to fade. The financial and healthcare sectors are also under pressure this morning.

Investor concerns over the health of the global economy are also contributing to the negative mood this morning. China's central bank injected $1.53 billion in short term loans to banks on Friday, The Wall Street Journal reported, as officials try to cope with an increasingly pronounced slowdown.

European markets are losing ground Friday, with investors turning cautious following some mixed corporate earnings reports. Lower crude oil prices and weakness in the Asian markets has prompted investors to take on a defensive stance.

Markets in the United States got off to a weak start Friday, but have come off their early lows. The Nasdaq has managed to climb back into positive territory, but the S&P 500 and the Dow Jones are still down modestly.

While the Labor Department released a report on Friday showing that U.S. consumer prices came in flat in the month of January, the report also showed a bigger than expected increase in core prices. The report said the consumer price index was unchanged in January after edging down by 0.1 percent in December. Economists had expected prices to dip by another 0.1 percent.

The benchmark S&P/TSX Composite Index is down 177.86 points or 1.38 percent at 12,753.50.

On Thursday, the index closed up 64.20 points or 0.50 percent, at 12,931.36. The index scaled an intraday high of 12,947.34 and a low of 12,839.38.

The Capped Health Care Index is down 3.01 percent. Concordia Healthcare (CXR.TO) is gaining 1.97 percent and Extendicare (EXE.TO) is higher by 0.88 percent. Valeant Pharmaceuticals International (VRX.TO) is declining 6.14 percent.

The Energy Index is falling 2.61 percent. Crude oil prices are falling this morning, as hopes are fading for a deal between Iran and Saudi Arabia to limit production.

Encana (ECA.TO) is decreasing 9.90 percent and Suncor Energy (SU.TO) is down 1.48 percent. Canadian Oil Sands (COS.TO) is falling 1.41 percent and Canadian Natural Resources (CNQ.TO) is lower by 3.40 percent. Husky Energy (HSE.TO) is declining 1.86 percent and Imperial Oil (IMO.TO) is surrendering 1.11 percent. Cenovus Energy (CVE.TO) is weakening by 3.61 percent and Crescent Point Energy (CPG.TO) is tumbling 3.32 percent.

Enbridge (ENB.TO) is losing 1.68 percent, after it reported earnings for its fourth quarter that advanced 21 percent from last year.

The heavyweight Financial Index is dropping 1.36 percent. Royal Bank of Canada (RY.TO) is decreasing 0.94 percent and Canadian Imperial Bank of Commerce (CM.TO) is falling 1.23 percent. Bank of Nova Scotia (BNS.TO) is losing 1.30 percent and Bank of Montreal (BMO.TO) is lower by 1.22 percent. Toronto-Dominion Bank (TD.TO) is weakening by 1.33 percent and National Bank of Canada (NA.TO) is down 1.88 percent.

The Capped Materials Index is down 0.91 percent. Franco-Nevada (FNV.TO) is falling 0.34 percent and Agrium (AGU.TO) is losing 1.57 percent. Potash Corp. of Saskatchewan (POT.TO) is sinking 4.99 percent.

The Capped Industrials Index is falling 0.59 percent. Canadian Pacific Railway (CP.TO) is decreasing 0.42 percent and Canadian National Railway (CNR.TO) is down 0.36 percent. Finning International (FTT.TO) is weakening by 3.82 percent and AutoCanada (ACQ.TO) is lower by 2.98 percent.

The Capped Information Technology Index is lower by 0.36 percent. Constellation Software (CSU.TO) is falling 0.73 percent and BlackBerry (BB.TO) is decreasing 1.42 percent. Sierra Wireless (SW.TO) is surrendering 0.85 percent.

The Gold Index is down 0.43 percent. Gold prices are climbing this morning, heading back toward recent yearly highs near $1250.

Goldcorp (G.TO) is losing 1.80 percent and Kinross Gold (K.TO) is surrendering 1.20 percent. B2Gold (BTO.TO) is falling 0.65 percent and Royal Gold (RGL.TO) is declining 1.82 percent. Eldorado Gold (ELD.TO) is also weakening by 1.21 percent.

The Capped Telecommunication Services Index is gaining 0.10 percent. Manitoba Telecom Services (MBT.TO) is advancing 0.06 percent and BCE (BCE.TO) is up 0.31 percent. TELUS (T.TO) is increasing 0.66 percent.

The Diversified Metal and Mining Index is climbing 0.28 percent. Lundin Mining (LUN.TO) is rising 1.35 percent and First Quantum Minerals (FM.TO) is climbing 5.96 percent. First Quantum Minerals revealed a profit for fourth quarter that plunged 75 percent compared to the same period last year.

Enerplus Corp. (ERF.TO) Friday reported fourth quarter net loss of C$624.98 million. The stock is sinking 6.97 percent.

Ritchie Bros. Auctioneers (RBA.TO) is losing 1.38 percent after it agreed to acquire Mascus International Holding.

On the economic front, Statistics Canada reported Friday morning that Canadian retail sales declined 2.2 percent in December. Economists had expected a drop of only 0.9 percent.

Statistics Canada also reported this morning that the Canadian consumer price index increased to 2 percent on an annual basis in January. Economists had expected 1.7 percent.

Germany's producer prices declined at a faster-than-expected pace in January, figures from Destatis showed Friday. The producer price index slid 2.4 percent year-over-year in January, exceeding economists' expectations for a 2.0 percent drop.

UK retail sales grew more-than-expected in January, preliminary data from the Office for National Statistics showed Friday. Excluding auto fuel, retail sales increased 2.3 percent from December and 5 percent year-on-year. Economists had expected growth of 0.8 percent and 3.6 percent.

The surplus in the public sector net borrowing excluding banks came in below economists' expectations in January, figures from the ONS showed Friday. The PSNB ex-banks revealed a surplus of GBP 11.2 billion versus GBP 10.2 billion a year ago. Economists had forecast GBP 12.3 billion surplus.

British households perceived that the value of their home increased in February, with the corresponding index rising to the highest level in sixteen months, survey figures from Markit Economics and Knight Frank showed Friday.

The Knight Frank/Markit House Price Sentiment Index, or HPSI, climbed to 59.6 in February from 58.7 in the previous month.

In commodities, crude oil futures for March delivery are down 1.21 or 3.93 percent at $29.56 a barrel.

Natural gas for March is down 0.032 or 1.73 percent at $1.82 per million btu.

Gold futures for April are up $4.30 or 0.35 percent at $1,230.60 an ounce.

Silver for March is down $0.057 or 0.37 percent at $15.375 an ounce.