Canadian Stocks Are Falling As Oil Prices Decline -- Canadian Commentary

(RTTNews) - The Canadian stock market posted early gains Monday, but has turned negative as the price of oil has dropped back below $48 per barrel. The drop in commodity prices has also contributed to the early weakness.

The U.S. equity markets are closed today for the Martin Luther King Jr. holiday. Investors will be watching for a batch of U.S. housing data later this week. The housing market index for January is due on Tuesday and housing starts for December are slated for Wednesday. Finally, existing home sales for December are scheduled for Friday.

Markets in Europe are modestly higher at the start of the new trading week. Investor hopes for further stimulus measures from the European Central Bank is driving the markets higher. The ECB is scheduled to hold its monetary policy meeting on Thursday.

The benchmark S&P/TSX Composite Index is down 55.98 points or 0.39 percent at 14,253.43. The market is pulling back from an early high of $14,323.82.

On Friday, the index closed up 267.59 points or 1.91 percent, at 14,309.41. The index scaled an intraday high of 14,330.80 and a low of 14,043.83.

The Energy Index is sinking by 1.94 percent, as the price of oil declines. Suncor Energy (SU.TO) is down 1.75 percent and Canadian Natural Resources (CNQ.TO) is lower by 3.44 percent. Encana (ECA.TO) is falling by 3.37 percent and Pacific Rubiales Energy is sinking by 4.74 percent.

Cenovus Energy (CVE.TO) is declining by 2.39 percent and Canadian Oil Sands (COS.TO) is down 2.06 percent. Vermilion Energy (VET.TO) is losing 1.51 percent and Imperial Oil (IMO.TO) is down 3.25 percent.

The Diversified Metal and Mining Index is increasing by 0.69 percent. HudBay Minerals (HBM.TO) is advancing by 2.46 percent and Turquoise Hill Resources (TRQ.TO) rising by 3.35 percent. First Quantum Minerals (FM.TO) is also gaining 0.45 percent.

Teck Resources (TCK.TO) is down 0.56 percent and Capstone Mining (CS.TO) is losing 1.53 percent. Lundin Mining (LUN.TO) is also decreasing by 2.03 percent.

The Gold Index is down 0.07 percent this morning. Kinross Gold (K.TO) is down 0.23 percent and Goldcorp (G.TO) is decreasing by 0.98 percent. B2Gold (BTO.TO) is losing 0.40 percent.

Yamana Gold (YRI.TO) is climbing by 0.56 percent and Royal Gold (RGL.TO) is up 2.52 percent. Eldorado Gold (ELD.TO) is higher by 1.13 percent.

OceanaGold (OGC.TO) is rising by 4.33 percent. The company reported that it has exceeded 2014 consolidated production guidance range with 307,463 ounces of gold and 25,010 tonnes of copper produced, on a consolidated basis.

The Capped Materials Index is down 0.31 percent. Franco-Nevada (FNV.TO) is declining by 1.12 percent and Agnico Eagle Mines (AEM.TO) is down 0.43 percent Silver Wheaton (SLW.TO) is also losing 0.25 percent.

The Financial Index is modestly lower, falling by 0.08 percent. Bank of Nova Scotia (BNS.TO) is down 0.50 percent and National Bank of Canada (NA.TO) is decreasing by 0.09 percent. Canadian Imperial Bank of Commerce (CM.TO) is declining by 0.31 percent and Royal Bank of Canada (RY.TO) is down 0.20 percent. Bank of Montreal (BMO.TO) is lower by 0.44 percent.

The Health Care Index is rising by 0.16 percent. Extendicare is rising by 2.32 percent. Valeant Pharmaceuticals (VRX.TO) is falling by 1.49 percent and Catamaran (CCT.TO) is down 0.13 percent.

The Capped Industrials Index is losing 0.09 percent. Bombardier (BBD-B.TO) is sinking 7.27 percent.

Easyhome (EH.TO) is climbing by 3.80 percent. The company announced that its subsidiary, easyfinancial Services Inc., has entered into a binding agreement to purchase the lease rights and obligations for up to 47 retail locations across Canada, together with certain related assets at certain locations from The Cash Store Financial Services Inc.

Lightstream Resources (LTS.TO) is sinking by 6.19 percent. The company announced that it is immediately suspending its monthly dividend, in light of further declines in world oil prices and to preserve financial flexibility.

BlackBerry (BB.TO) is up 0.57 percent. The Wall Street Journal reported that Samsung Electronics stated that it is interested in developing a partnership with BlackBerry, but not in buying the company.

In commodities, crude oil futures for February delivery are down $0.89 or 1.83 percent at $47.80 a barrel.

Natural gas for February is down $0.133 or 4.25 percent at $2.994 per million btu.

Gold futures for February are down $2.60 or 0.20 percent at $1,274.30 an ounce.

Silver for March is down $0.08 or 0.45 percent at $17.67 an ounce. Copper for March is also down 0.046 or 1.76 percent at $2.571.