TSX Hits 10-month Low, Talisman Soars On Takeover Talk -- Canadian Commentary

(RTTNews) - Canadian stocks are lower Friday morning, with crude oil's plunge to a fresh five-year low and worries about the global economy hurting sentiment.

Investors are also digesting a mixed batch of economic data from the U.S.

Crude oil futures plunged below $59 a barrel after the International Energy Agency cut its global oil demand growth forecast for 2015 to 0.9 million barrels per day, down 230 kilo barrels per day from its previous forecast.

Still, the energy sector is holding steady amid reports that Spain's Repsol is preparing a bid to acquire Canadian oil major Talisman, whose shares jumped 30 percent.

The benchmark S&P/TSX Composite Index is down 137.51 points or 0.99 percent at 13,767.61, the lowest level in ten months. The index looks set to end the week with a loss of over 4.5 percent.

On Thursday, the benchmark S&P/TSX Composite Index closed up 52.17 points or 0.38 percent at 13,805.12, after an intraday high of 14,083.74 and a low of 13,827.43.

The Diversified Metals & Mining Index is down 1.6 percent, with Major Drilling Group International Inc.(MDI.TO) losing nearly 4 percent. First Quantum Minerals (FM.TO), Teck Resources (TCK.B.TO), Turquoise Hill Resources (TRQ.TO) and Lundin Mining Corporation (LUN.TO) are down 2 to 3 percent and Capstone Mining Corp. (CS.TO) is declining 1.2 percent, while Sherritt International Corporation (S.TO) is moving up 1.3 percent.

The Capped Materials Index is down 1.2 percent. Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO) and Agnico Eagle Mines (AEM.TO) are down 1 to 2 percent, while Eldorado Gold Corporation (ELD.TO) is declining 2.75 percent.

Dominion Diamond Corp. (DDC.TO) reported third-quarter consolidated net profit of $25.5 million or $0.30 per share, compared to a net loss of $4.8 million or $0.06 per share in the third quarter of the prior year. The stock is up 2 percent.

The Consumer Discretionary Index is down 1.1 percent. Amaya Inc. (AYA.TO) shares are down over 14 percent after the company said it is cooperating with a Quebec investigation regarding trading activities.

Magna International Inc. (MG.TO), Shaw Communications Inc. (SJR.B.TO) and Linamar Corporation (LNR.TO) are down 1.5 to 3 percent.

The Energy Index flat. Canadian Natural Resources (CNQ.TO), Suncor Energy (SU.TO), Imperial Oil (IMO.TO), Tourmaline Oil Corp. (TOU.TO) and Vermilion Energy Inc. (VET.TO) are up 1 to 2 percent.

Bankers Petroleum Ltd. (BNK.TO) announced a capital program of $218 million for 2015. The stock is up 1.3 percent.

The Financial Index is down 0.6 percent. Among the big six banks, National Bank of Canada (NA.TO) and Canadian Imperial Bank of Commerce (CM.TO) are down 2.7 percent and 1.7 percent, respectively. Bank of Nova Scotia (BNS.TO), Toronto-Dominion Bank (TD.TO) and Royal Bank of Canada (RY.TO) are down 0.4 to 1 percent, while Bank of Montreal (BMO.TO) is moving up 0.6 percent.

Insurance stocks Sun Life Financial Inc. (SLF.TO) and Manulife Financial Corporation (MFC.TO) are down 1.2 percent and 1.3 percent, respectively.

The Industrials Index is up 0.5 percent. Canadian National Railway (CNR.TO), Canadian Pacific Railway (CP.TO), WestJet Airlines (WJA.TO), Air Canada (AC.TO) and MacDonald, Dettwiler and Associates (MDA.TO) are up 0.5 to 1 percent, while Bombardier Inc. (BBD.TO) and Progressive Waste Solutions (BIN.TO) are declining by about 1 percent. Healthcare stocks are mixed. Valeant Pharmaceuticals International Inc. (VRX.TO) is up nearly 1 percent, while Catamaran Corporation (CCT.TO) is down 0.8 percent.

BRP Inc. (DOO.TO) shares are down over 8 percent after the company reported third quarter net income of $ 37.2 million, compared to $ 48.2 million in the year ago quarter.

In commodities, crude oil futures for January delivery are down $1.65 or 2.75 percent at $58.30 a barrel.

Natural gas for January is up $0.100 or 2.74 percent at $3.735 per million btu.

Gold futures for February are down $1.40 or 0.16 percent at $1,224.20 an ounce.

Silver for March is up $0.015 or 0.09 percent at $17.127 an ounce. Meanwhile, copper is up $0.009 or 0.30 percent at $2.930 per pound. slightly at $2.922 per pound.

Data from the U.S. Labor Department showed producer prices to have declined 0.2 percent in November. Economists expected the index to have edged down 0.1 percent month-over-month in November.

According to a report from Thomson Reuters and the University of Michigan, the preliminary reading on the consumer sentiment index for December came in at 93.8, compared to the final November reading of 88.8. Economists had expected the index to show a more modest increase of 89.5.

Data from China's National Bureau of Statistics showed Chinese industrial production to have advanced 7.2 percent in November from last year. This was the weakest growth in three months and slower than the 7.7 percent increase seen in October and 7.5 percent growth forecast by economists.

In economic news from eurozone, data from Eurostat showed eurozone industrial output to have edged up by a less than expected 0.1 percent October, after a revised 0.5 percent increase in the preceding month.