TSX Ends A Tad Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended a tad lower on Tuesday, tracking declining global equity stocks driven by mining, energy and gold sectors as commodity prices continued to slide.

Markets in Europe ended in negative territory Tuesday, after yesterday's solid advance. The debt crisis in Greece is still in a limbo, as the nation scrambles to secure financing ahead of the April 20 deadline.

Markets in the United States also ended lower due mainly to profit taking following Monday's rally. Remarks by Richmond Federal Reserve Bank President Jeffrey Lacker have also revived concerns about the outlook for interest rates.

Lacker said he believes a strong case can be made for an increase in interest rates relatively soon. Lacker said the Fed's June meeting will likely be an appropriate time to raise rates, arguing that recent signs of economic weakness are transitory and due to the rough winter weather.

With Denver, Miami, and Dallas pacing the gains, Standard & Poor's released a report on Tuesday showing that home prices in major U.S. metropolitan areas increased at a faster annual rate in the month of January.

Business activity in the Chicago area unexpectedly continued to contract in the month of March, according to a report from MNI Indicators on Tuesday. Consumer confidence in the U.S. unexpectedly rebounded in March, the Conference Board, with the increase driven by an improved short-term outlook for both employment and income prospects.

The benchmark S&P/TSX Composite Index is up 0.71 points or 0.00 percent at 14,909.10. The market has rebounded from an early low of 14,813.71.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,902.44, down 5.95 points or 0.04 percent. The index scaled an intraday high of 14,962.83 and a low of 14,813.71.

On Monday, the index closed up 95.97 points or 0.67 percent, at 14,908.39. The index scaled an intraday high of 14,994.95 and a low of 14,855.40.

Crude oil ended lower amid renewed expectations of a nuclear deal with Iran which could see easing of sanctions against Tehran. If an agreement on inspections can be worked out, Iran's oil is expected to add to a global supply glut that has already driven oil prices to the lowest in six years.

The Energy Index shed 0.22 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, shedding $1.08 or 2.2 percent to settle at $47.60 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) added 0.20 percent, Suncor Energy Inc. (SU.TO) moved up 0.38 percent, and Canadian Natural Resources Limited (CNQ.TO) shed 0.59 percent. Crescent Point Energy Corp. (CPG.TO) slipped 1.67 percent, while Cenovus Energy Inc. (CVE.TO) also shed 0.79 percent.

Encana Corp. (ECA.TO) gained 1.73 percent, while Pacific Rubiales Energy Corp. (PRE.TO) shed 3.21 a share.

The Diversified Metals & Mining Index dived 2.94 percent, as First Quantum Minerals Ltd. (FM.TO) gained 0.66 percent and Lundin Mining Corp. (LUN.TO) lost 4.40 percent.

Teck Resources (TCK.B.TO) plummeted 10.64 percent, after it denied rumors of its involvement in discussions with Antofagasta plc in relation to any form of transaction.

Gold futures ended lower as the dollar strengthened against a basket of major currencies with global equity markets declining.

The Gold Index dropped 1.39 percent, with gold for April delivery shedding $2.10 or 0.2 percent to settle at $1,183.20 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Kinross Gold Corp (K.TO) shed 2.77 percent, Eldorado Gold Corp. (ELD.TO) fell 1.36 percent, Barrick Gold Corp. (ABX.TO) dropped 1.98 percent, and Yamana Gold Inc. (YRI.TO) dived 3.61 percent.

The Capped Materials Index dropped 1.56 percent, mainly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.71 percent and Agrium Inc. (AGU.TO) down 2.66 percent.

The heavyweight Financial Index added 1.01 percent, with Bank of Nova Scotia (BNS.TO) adding 1.32 percent and Bank of Montreal (BMO.TO) gaining 1.16 percent.

National Bank of Canada (NA.TO) moved up 0.78 percent, while Toronto-Dominion Bank (TD.TO) fell 0.41 percent. Canadian Imperial Bank of Commerce (CM.TO) inched up 0.08 percent, while Royal Bank of Canada (RY.TO) gained 0.07 percent.

Toronto-Dominion Bank (TD.TO) rose 1.46 percent, after Citigroup upgraded its rating on the stock to "Buy" from "Neutral."

The Capped Industrials Index gained 0.55 percent, as Bombardier Inc. (BBD.B.TO) added 4.17 percent, and Air Canada (AC.TO) dipped 1.90 percent

The Information Technology Index shed 0.58 percent, as BlackBerry (BB.TO) added 1.07 percent. Sierra Wireless, Inc. (SW.TO) gained 0.33 percent, while Descartes Systems Group Inc. (DSG.TO) moved up 0.58 percent.

The Capped Telecommunication Index dropped 0.80 percent, with Rogers Communications Inc. (RCI.B.TO) down 1.83 percent, BCE Inc. (BCE.TO) down 0.72 percent, and TELUS Corp. (T.TO) losing 0.21 percent.

DH Corp. (DH.TO) declined 2.30 percent, after agreeing to acquire Fundtech for US$1.25 billion.

Callidus Capital (CBL.TO) plunged 6.71 percent after reporting a fourth-quarter profit of $0.42 per share, compared to a loss of $0.21 per share in the prior year.

Amaya (AYA.TO) shed 1.69 percent, after reporting fourth quarter adjusted earnings of $0.42 per share, up from $0.05 per share in the previous year.

On the economic front, the Canadian economy contracted less-than-expected in January. Data from Statistics Canada showed that Canada's gross domestic product edged down 0.1 percent on month in January, after increasing 0.3 percent in December. Economists had been expecting a decline of 0.2 percent.

Statistics Canada also reported this morning that Canadian average weekly employee earnings increased by 0.4 percent on a monthly basis in January.

In other economic news, inflation remained negative for the fourth consecutive month, the price decline in March was the slowest for the period, the flash estimate from Eurostat showed Tuesday. The harmonized index of consumer prices fell 0.1 percent year-on-year in March, in line with expectations. It was slower than February's 0.3 percent decline and a 0.6 percent fall seen in January.

Germany's retail sales growth eased at a slower-than-expected pace in February, preliminary figures from Destatis showed Tuesday.

Retails sales grew 3.6 percent year-over-year in February, slower than January's 5.0 percent climb, which was revised from a 5.3 percent increase. Economists had forecast a 3.4 percent growth for the month. It was the third consecutive monthly rise.

Germany's jobless rate fell to a record low in March, the Federal Labor Agency reported Tuesday. The unemployment rate dropped to a seasonally adjusted 6.4 percent in March from 6.5 percent in February. The rate came in line with economists' expectations.

Germany's jobless rate remained unchanged in February, provisional results from Destatis showed Tuesday. The jobless rate came in at adjusted 4.8 percent in February, unchanged from the prior month. The January rate was revised down from 4.7 percent. A year ago, the unemployment rate was 5.1 percent.

France's consumer spending grew for a fourth straight month in February, albeit modestly, defying economists' expectations for a decline, data from INSEE revealed Tuesday. Household consumption grew 0.1 percent from January, when it rose 0.7 percent, which was revised from 0.6 percent. Economists were looking for a 0.1 percent decline.

France's producer prices continued the declining trend in February, figures from the statistical office INSEE revealed Tuesday. Producer prices for the French market dropped 2.6 percent annually. In January, they declined 3.3 percent.

The U.K. economy grew more than the prior estimate in the fourth quarter, according to the latest report released Tuesday. Gross domestic product grew 0.6 percent sequentially in the fourth quarter, revised up from 0.5 percent published on February 26, the Office for National Statistics said. The growth was thus unchanged from the 0.6 percent expansion seen in the third quarter.