RTTN: TSX Extends Losses On Global Growth Worries - Canadian Commentary
(RTTNews) - Toronto stocks were extending losses for a second session Friday morning after the U.S. Federal Reserve failed to hint on any specific plans to dole out more monetary stimulus. Meanwhile, Canadian economic data came in mixed, with unemployment rate remaining flat in the month of May and the nation slipping to a trade deficit in April, reversing surplus in the month of March.
The S&P/TSX Composite Index shed 50.67 points or 0.44 percent to 11,541.45, a day after snapping its two-session winning streak.
The Diversified Materials Index shed over 2 percent, with with Inmet Mining (IMN.TO) losing nearly 4 percent. First Quantum Minerals (FM.TO) and Teck Resources (TCK_B.TO) were down around 2 percent each.
The price of crude oil moving lower, with crude for July losing $1.89 to $82.93 a barrel.
In the oil patch, Niko Resources (NKO.TO) surrendered close to 5 percent. Bonterra Energy (BNE.TO) and Baytex Energy Corp. (BTE.TO) were down around 2 percent each.
In the financial space, TD Bank (TD.TO) and Bank of Montreal (BMO.TO) slipped around 1 percent each.
Water treatment services provider GLV Inc. (GLV_A.TO) dived 9 percent after reporting a fourth-quarter normalized net loss of C$7.0 million or C$0.16 per share, wider than the normalized net loss of C$5.8 million or C$0.13 per share in the same period last year.
Engineering services provider Genivar Inc. (GNV.TO) surrendered over 5 percent after it said it would acquire WSP Group Plc (WSH.L) in exchange of 435 pence in cash for each WSP Share, valuing WSP at approximately $442 million..
Meanwhile gold stocks were marginally higher despite weak bullion prices. The price of gold extending losses Friday morning after the Federal Reserve failed to hint on any specific plans for further monetary stimulus, disappointing investors. Gold for August shed $4.40 to $1,583.60 an ounce.
Among gold plays, Royal Gold (RGL.TO), Allied Nevada Gold (ANV.TO) and Barrick Gold (ABX.TO) gathered around 2 percent each.
In economic news, Statistics Canada said employment edged up by 7,700 in the month of May, after two months of large gains. Meanwhile, the unemployment rate was flat at 7.3 percent. Economists had expected 5,000 new jobs in May, and the unemployment rate to edge up to 7.4 percent.
Separately, the agency said Canada posted a trade deficit of $367 million in April, after five consecutive monthly surpluses. Merchandise exports declined 1.2 percent in April, while imports edged up 0.1 percent, resulting in a trade deficit of $367 million in April, down from a surplus of $152 million in March.
From the U.S., the Commerce Department said the nation exported some $182.9 billion in goods and services while imports were tallied at $233 billion, resulting in a trade deficit of $50.1 billion. While the resulting overall trade deficit of $50.1 billion is lower than the $52.6 billion recorded in March, it remains higher than the $49.3 billion deficit level predicted by most economists.
Elsewhere, German exports declined 1.7 percent month-on-month in April after adjusting to seasonal and calendar variations, the Federal Statistical Office said. This was the first decline in exports since December 2011. Economists expected only a 0.7 percent fall in shipments during the month.
A report from the Office for National Statistics revealed U.K. output price inflation eased in May to the lowest since November 2009. Output price inflation fell to 2.8 percent in May from 3.2 percent in April. The annual rate was expected to stay at 3.2 percent.
