TSX Ends Lower As WB Lowers Global Growth Forecast -- Canadian Commentary

(RTTNews) - Canadian stocks snapped an eight-day winning streak to end lower on Wednesday, with global equity markets declining after the World Bank projected global economic growth to be weaker than previously estimated, significantly trimming its forecast for the year.

The World Bank in its latest World Economic Prospects report said global economic growth in 2014 is likely to be weaker than expected, with the poor weather in the U.S., financial market turbulence and the Ukrainian issue serving as drags.

The World Bank lowered its global growth forecast for 2014 to 2.8 percent, largely due to the weaker than expected pace of recovery in Chinese, Russian and the U.S. economies. The Bank had earlier projected a growth of 3.5 percent for the global economy.

Weakness in U.S. and European markets, and some profit taking after seven successive days of gains also dragged down stock prices.

Among the major losers were Healthcare, Industrial, Telecommunications and Consumer staples stocks, while Energy and Gold stocks moved up.

The S&P/TSX Composite Index closed Wednesday at 14,892.13, down 12.25 points or 0.08 percent. The index scaled an intraday high of 14,904.47 and a low of 14,850.41. Nevertheless, the index is still close to its all-time high of above 15,000 set in 2008.

Crude oil ended slightly higher after a weekly report from the Energy Information Administration showed crude oil stockpiles in the U.S. to have declined more than expected. However, the gains were limited as gasoline inventories jumped and the World Bank revising its growth outlook for the global economy downward.

Earlier today, a report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have declined 2.6 million barrels in the week ended June 6, with analysts anticipating a drop of 1.2 million barrels. Gasoline stocks rose by 1.7 million barrels last week, while analysts anticipated a drop of 0.5 million barrels.

Meanwhile, as expected, the OPEC said it would maintain its production target unchanged at 30 million barrels a day.

The Energy Index added 0.32 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, moving up $0.05 or 0.01 percent to close at $104.40 a barrel Wednesday on the Nymex.

Among energy stocks, Encana Corp. (ECA.TO) gained 0.90 percent, while Canadian Natural Resources Ltd. (CNQ.TO) dipped 0.28 percent. Talisman Energy Inc. (TLM.TO) gained 1.62 percent, while Suncor Energy Inc. (SU.TO) added 1.26 percent.

The Financial Index dropped 0.40 percent with Royal Bank of Canada (RY.TO) edging down 0.49 percent, Bank of Montreal (BMO.TO) down 0.48 percent, Toronto-Dominion Bank slipped 0.64 percent, Bank of Nova Scotia surrendered 0.28 percent, and the Canadian Imperial Bank of Commerce (CM.TO) edging up 0.01 percent.

The Capped Healthcare Index shed 0.96 percent with Catamaran Corp. (CCT.TO) slipping 1.23 percent and Extendicare Inc. (EXE.TO) losing 1.21 percent. Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 0.50 percent.

The Global Gold Index climbed 1.21 percent, with gold futures for August delivery gaining $1.10 or 0.1 percent to close at $1,261.20 an ounce Wednesday on the Nymex.

Among gold stocks, B2Gold Corp. (BTO.TO) jumped 6.64 percent, Yamana Gold Inc. (YRI.TO) added 2.05 percent, Osisko Mining Corp. (OSK.TO) gained 0.84 percent, Barrick Gold Corp. (ABX.TO) was up 0.79 percent, and Kinross Gold Corp. (K.TO) added 1.15 percent.

The Capped Materials Index gained 0.74 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) slipping 0.53 percent.

The Diversified Metals & Mining Index shed 0.77 percent, with Lundin Mining Corp. (LUN.TO) down 1.93 percent, First Quantum Minerals Ltd. (FM.TO) up 0.14 percent, and Teck Resources Limited (TCK.B.TO) flat at $23.77 a share.

The Information Technology Index gained 0.37 percent, with BlackBerry Limited (BB.TO) down 1.17 percent, and Celestica Inc. (CLS.TO) down 1.06 percent.

The Capped Industrials Index fell 0.36 percent, with Bombardier Inc. (BBD.B.TO) down 0.52 percent and Air Canada (AC.B) down 2.55 percent.

Among the stocks in the consumer staples space, The North West Company Inc. (NWC.TO) lost 3.79 percent after reporting a 1.8 percent decline in first quarter net earnings. Metro Inc. (MRU.TO) slipped 0.70 percent, while Empire Company Limited (EMP.A.TO) lost 0.90 percent.

In the telecom space, Rogers Communications Inc. (RCI.B.TO) dropped 2.30 percent, while Bell Aliant Inc. (BA.TO) shed 2.59 percent. and 2.2 percent, respectively. Telus Corporation (T.TO) lost 0.68 percent, while BCE Inc. (BCE.TO) slipped 0.34 percent.

Shares of Aecon Group Inc. (ARE.TO) gained 1.38 percent after the company indicated bagged mining contracts worth C$100 million.

Enghouse Systems Ltd. (ESL.TO) rose 1.45 percent after reporting a 23 percent jump in second quarter revenue.

Genesis Land Development Corp. (GDC.TO) gained 1.13 percent after announcing a special cash dividend of 12 Canadian cents a share.

Reitmans (Canada) Ltd. (RET.A.TO) plummeted 11.39 percent after reporting a first-quarter loss that widened from a year ago.

Mediagrif Interactive Technologies Inc. (MDF.TO) added 1.05 percent after reporting a fourth-quarter profit of 25 Canadian cents a share, compared to 22 Canadian cents in the corresponding period last year.

The World Bank cut its global economic growth forecast to 2.8 percent, significantly lower than the earlier estimate of 3.2 percent. However, the bank left its forecast for 2015 and 2016 broadly unchanged at 3.4 percent and 3.5 percent, respectively.

In Europe, unemployment in the U.K. decreased more than expected in the three months to April, falling to 6.6 percent, from 7.2 percent in the November - January period.

Meanwhile, unemployment rate across the member nations of the Organization for Economic Cooperation and Development dropped to 7.4 percent in April from 7.5 percent in March. Around 45 million persons were unemployed in April, 4.9 million less than the peak in April 2010, but still 10.3 million more than in July 2008, the OECD said Wednesday.