TSX Plummets 2.8% As Financial, Energy Stocks Fall -- Canadian Commentary

(RTTNews) - Canadian stocks plunged to end sharply lower Monday, on falling crude oil prices and renewed worries over the global economy on the back of some weak data from Asia and eurozone contributing to the market decline.

Investor weighed some weak data from China and Japan, once again triggering concerns over the health of the global economy.

Data from China showed some weak trade activity in the world's second largest economy, with both export and import missing expectations. Elsewhere in Asia, revised data showed Japan's economy in the third quarter to have contracted more than previously reported.

Canadian stocks dropped sharply, led mainly by losses in resource and financial stocks. Bank stocks are down sharply, with most quarterly results turning out to be somewhat downbeat.

Crude oil futures tumbled to their lowest levels since July 2009, triggering a sell-off in the energy space.

The benchmark S&P/TSX Composite Index closed Monday at 14,144.17, down 329.53 points or 2.28 percent. The index scaled a intraday high of 14,410.05 and a low of 13,983.71.

On Friday, the index ended at 14,373.70, up 3.75 points or 0.03 percent, on some upbeat economic data out of the U.S. and eurozone, even as Canadian unemployment increased in November, but in line with estimates.

Crude oil ended at fresh 5-year lows on worries over global economic growth with waning demand for oil, even as concerns of a supply glut heightened with analysts forecasting an over-supply scenario deep into 2015.

The Energy Index plummeted 6.49 percent, with U.S. crude oil futures for January delivery plunging $2.79 or 4.2 percent to close at $63.05 a barrel on the Nymex Monday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) plunged 10.35 percent, Talisman Energy Inc. (TLM.TO) fell 4.23 percent, Pacific Rubiales Energy Corp. (PRE.TO) plummeted 20.11 percent, and Crescent Point Energy Corp. (CPG.TO) shed 6.33 percent.

Suncor Energy Inc. (SU.TO) fell 5.73 percent,, Cenovus Energy Inc. (CVE.TO) plunged 7.95 percent, Encana Corp. (ECA.TO) dived 8.49 percent, and Canadian Natural Resources Limited (CNQ.TO) slipped 4.04 percent.

Enbridge Inc. (ENB.TO) shed 4.16 percent.

Gold futures ended higher after some soft data from China and Japan lifted hopes of additional stimulus, finding further support on a weak dollar with global equity markets declining.

The Global Gold Index gained 1.44 percent, with gold for February delivery gaining $4.50 or 0.4 percent to settle at $1,1194.90 an ounce on the New York Mercantile Exchange Monday.

In the gold space, Barrick Gold Corp. (ABX.TO) gained 0.53 percent, Agnico Eagle Mines Limited (AEM.TO) added 1.11 percent, Goldcorp Inc. (G.TO) moved up 0.27 percent, Franco-Nevada Corp. (FNV.TO) added 1.31 percent, and Yamana Gold Inc. (YRI.TO) gathered 2.90 percent.

Kirkland Lake Gold (KGI.TO) gained 2.85 percent after reporting net income of $2.7 million or $0.04 per share for the second quarter, against net loss of $3.9 million or $0.06 per share in the year ago quarter.

The Capped Materials Index dipped 0.68 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 1.31 percent.

The Financial Index dived 1.45 percent, with Bank of Nova Scotia (BNS.TO) down 1.71 percent, National Bank of Canada (NA.TO) dropped 1.07 percent, Canadian Imperial Bank of Commerce (CM.TO) fell 0.68 percent, and Toronto-Dominion Bank (TD.TO) dropped 2.46 percent. Royal Bank of Canada (RY.TO) fell 0.29 percent, and Bank of Montreal (BOM.TO) shed 1.15 percent.

The Healthcare Index inched up 0.06 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) inched up 0.07 percent and Catamaran Corp. (CCT.TO) gained 0.31 percent. Extendicare Inc. (EXE.TO) slipped 0.31 percent.

The Diversified Metals & Mining Index plunged 3.45 percent, as First Quantum Minerals Ltd. (FM.TO) plunged 5.47 percent, Teck Resources Limited (TCK.B.TO) dived 4.27 percent, and Lundin Mining Corp. (LUN.TO) slipped 1.45 percent. Sherritt International Corp. (S.TO) plummeted 5.65 percent, while Major Drilling Group International Inc. (MDI.TO) declined 2.47 percent.

The Capped Industrials Index dived 2.97 percent, as Bombardier Inc. (BBD.B.TO) dropped 2.62 percent, SNC-Lavalin Group Inc. (SNC.TO) shed 5.76 percent, and Air Canada (AC.TO) fell 2.83 percent.

The Information Technology Index surrendered 2.11 percent with Descartes Systems Group Inc. (DSG.TO) down 2.70 percent and Avigilon Corp. (AVO.TO) shedding 4.11 percent.

BlackBerry Ltd. (BB.TO) shed 1.31 percent, even as the smartphone maker launched a cancer genome browser in partnership with NantHealth.

The Capped Telecommunication Index fell 0.45 percent, as BCE Inc. (BCE.TO) dropped 0.29 percent, Rogers Communications Inc. (RCI.B.TO) inched up 0.04 percent, TELUS Corp. (T.TO) dropped 0.77 percent, and Shaw Communications Inc. (SJR.B.TO) dropped 0.55 percent.

The Consumer Discretionary Index shed 1.33 percent with Tim Hortons Inc. (THI.TO) shedding 0.82 percent.

Norbord (NBD.TO) gained 0.67 percent after indicating that it will acquire Ainsworth Lumber in an all-stock deal valued at C$762.6 million.

In economic news, China's merchandise trade surplus came in at $54.47 billion in November, well above the forecast of $41 billion, following the $45.41 billion surplus in October.

China's exports rose at a slower than expected pace, rising 4.7 percent on year in November, while economists expected exports to rise 9.0 percent. China's imports tumbled an annual 6.7 percent versus forecast for a gain of 4.0 percent.

Japan's gross domestic product declined in the third quarter of 2014, downwardly revised to 1.9 percent on year, the Cabinet Office said in Monday's final reading - confirming the country's slide into recession. The headline figure missed the forecast for a decline of 0.5 percent, which would have been an improvement over the 1.6 percent decline in last month's preliminary estimate.

From the eurozone, German industrial production growth softened in October on a notable fall in energy output, official data revealed Monday. Industrial output grew 0.2 percent in October from a month ago, Destatis said. Production was forecast to rise 0.3 percent after expanding by a revised 1.1 percent in September.

Meanwhile, the French economy is expected to grow 0.1 percent in the fourth quarter as estimated in the prior month, survey data from the Bank of France showed Monday. The business confidence index rose marginally to 97 in November from 96 in October.

A slew of economic data are due this week, including weekly jobless claims, a report on retail sales for November and the preliminary consumer sentiment reading from Reuters and the University of Michigan. Investors will also be looking ahead to the U.S. Commerce Department's wholesale and business inventories report for October and the Labor Department's producer prices data for November.