TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Monday, tracking declining U.S. global equity markets as investors weighed the possibilities of an earlier interest rate hike by the U.S. Federal Reserve following some upbeat jobs data from the U.S. last week.

The main index was dragged down mostly by energy and industrial stocks.

Last week, investors cheered some upbeat U.S. economic data with unemployment rate at its lowest level in over six years. Speculations are rife the Federal Reserve will start hiking rates possibly from Spring next year. Some weak economic data from the eurozone also contributed to the weakness.

The benchmark S&P/TSX Composite Index closed Monday at 14,743.12, down 46.66 points or 0.32 percent. The index scaled a intraday high of 14,878.67 and a low of 14,743.12.

On Friday, the index ended up 29.14 points or 0.20 percent at 14,789.78, after scaling a intraday high of 14,875.01 on some upbeat U.S. jobs data. Despite the gain on Friday, the index surrendered more than 1.5 percent last week.

Crude oil rebounded to end higher after having plummeted to a two-year low last week, as the dollar came off its 4-year highs against a basket of major currencies. Nonetheless, the gains were somewhat limited on demand growth concerns.

The Energy Index dropped 0.72 percent, although U.S. crude oil futures for November delivery gained gained $0.60 or 0.7 percent to close at $90.34 on the Nymex Monday.

Among energy stocks, Encana Corp. (ECA.TO) inched up 0.29 percent, Cenovus Energy Inc. (CVE.TO) down 0.99 percent, and Canadian Natural Resources Limited (CNQ.TO) surrendered 0.33 percent. Suncor Energy Inc. (SU.TO) slipped 0.68 percent, while Enbridge Inc. (ENB.TO) fell 0.46 percent.

Bankers Petroleum (BNK.TO) jumped 5.10 percent and Athabasca Oil Corp. (ATH.TO) gained 2.15 percent

The Financial Index slipped 0.04 percent, with Toronto-Dominion Bank (TD.TO) edging down 0.04 percent, while Canadian Imperial Bank of Commerce (CM.TO) gained 0.36 percent. Royal Bank of Canada (RY.TO) inched up 0.01 percent, Bank of Nova Scotia (BNS.TO) fell 0.22 percent, Bank of Montreal (BMO.TO) gained 0.13 percent, and National Bank of Canada (NA.TO) added 0.26 percent.

Gold futures rebounded to end higher on Monday, after the dollar trended lower against some major currencies with demand for the precious also metal picking up.

The Global Gold Index gained 0.91 percent, with gold for December delivery adding $14.40 or 1.2 percent to settle at $1,207.30 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Barrick Gold Corp. (ABX.TO) dropped 0.44 percent, Yamana Gold Inc. (YRI.TO) fell 0.46 percent, and Eldorado Gold Corp. (ELD.TO) added 0.77 percent. Goldcorp Inc. (G.TO) gained 1.14 percent, while B2Gold Corp. (BTO.TO) added 2.27 percent.

The Capped Materials Index added 0.53 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) moving up 0.52 percent.

The Diversified Metals & Mining Index dipped 0.10 percent, with First Quantum Minerals Ltd. (FM.TO) adding 0.86 percent, Lundin Mining Corp. (LUN.TO) slipping 0.19 percent, and Teck Resources Limited (TCK.B.TO) shedding 0.70 percent.

The Capped Industrials Index dived 1.06 percent, with Bombardier Inc. (BBD.B.TO) dropping 1.63 percent and SNC-Lavalin Group Inc. (SNC.TO) down 1.08 percent.

The Information Technology Index dropped 0.27 percent, with smartphone maker BlackBerry Limited (BB.TO) down 0.47 percent.

The Healthcare Index fell 0.89 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 2.10 percent. Catamaran Corporation (CCT.TO) dropped 2.21 percent, while Extendicare Inc. (EXE.TO) gained 1.58 percent.

The Telecom Index gained 0.17 percent with Rogers Communications Inc. (RCI.B.TO) edging up 0.21 percent and TELUS Corp. (T.TO) also gaining 0.31 percent.

Air Canada (AC.B.TO) jumped 4.57 percent after reporting a 9.2 percent growth in system wide traffic, on a system-wide capacity increase of 7.3 percent in September 2014. Traffic, measured in revenue passenger miles, was up 9.2 percent at 5.54 billion in September, compared to the prior year's 5.08 billion.

WestJet (WJA.TO) added 1.00 percent after reporting a load factor of 75.9 percent for September. Revenue passenger miles, or traffic, increased 6.0 percent year over year, and capacity, measured in available seat miles, grew 6.8 percent over the same period.

Superior Plus Corp. (SPB.TO) shares plummeted 8.35 percent after the company decided not to proceed with the sale of its construction products distribution business, while preferring to continue with its previously announced business transformation project to fully integrate CPD commercial and industrial insulation and gypsum specialty distribution operations which had been placed on hold during the strategic review of CPD.

Postmedia Network Canada Corp. (PNC.B.TO) surged 11.11 percent after the company agreed to buy 175 English-language newspapers, specialty publications and digital properties from Quebecor Inc.'s Sun Media unit for C$316 million.

Open Text Corp. (OTC.TO) dropped 0.11 percent after revealing an agreement to settle a patent dispute with Alfresco Software Ltd.

In economic news from Canada, total federal expenses declined to 14.7 percent of gross domestic product in the fiscal year ended March 31, a Canadian Finance Department Annual Report showed. It was the lowest level since 1966.

In economic news, the World Bank slashed its growth for China to 7.4 percent this year, from a previous forecast of 7.6 percent. This is below China's target of about 7.5 percent. For next year, the lender has now forecast the Chinese economy to grow 7.2%, down from 7.5%. China's growth last year rose 7.7 percent.

Developing East Asia is forecast to expand 6.9 percent this year and the next, the Washington-based lender said in its East Asia Pacific Economic Update on Monday. In April, the bank had projected 7.1 percent growth each for 2014 and 2015.

Excluding China, growth will pick up the next year as a gradual recovery in high-income economies boosts demand for exports from the region, the bank estimated. The growth in developing countries excluding China is expected to bottom out at 4.8 percent in 2014 before rising to 5.3 percent in 2015.

From the eurozone, investor confidence declined for the third straight month, hitting the lowest level since May 2013. The investor confidence index fell to minus 13.7 in October from minus 9.8 percent in September.

Meanwhile, German factory orders declined at the fastest pace since January 2009, driven largely by a fall in capital goods demand, data from Destatis showed Monday. Factory orders fell 5.7 percent month-over-month in August following the 4.9 percent rise in July. This was more than the 2.5 percent drop expected by economists and the biggest decline since January 2009, when orders were down 7.7 percent.

Germany's construction sector stabilized in September ending a five-month period of contracting activity, Markit Economics said Monday. The seasonally adjusted Purchasing Managers' Index rose to 50 from 47.7 in August.

Investors will be paying close attention to the Fed Reserve for clues about whether interest rates will be raised ahead of schedule.