The Canadian stock market is down again Thursday morning, extending the weakness from the prior six trading sessions. The mining sector continues to take heavy losses and energy stocks are down amidst falling crude oil prices. Investors are also sifting through a large number of corporate financial reports this morning.
Markets in Europe are falling Thursday, after Eurozone's industrial production declined more-than-expected in September. European Central Bank Chief Mario Draghi also said the central bank would re-examine the degree of monetary policy accommodation at the December meeting.
Markets in the United States are also under pressure this morning. Worries about the outlook for U.S. monetary policy have contributed to the pullback due in part to last Friday's better than expected October jobs report. Traders are also keeping a close eye on today's remarks from a number of Fed officials.
First-time claims for U.S. unemployment benefits unexpectedly came in flat in the week ended November 7th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims came in at 276,000, unchanged from the previous week's unrevised level. Economists had expected jobless claims to dip to 270,000.
The benchmark S&P/TSX Composite Index is down 98.60 points or 0.74 percent at 13,243.33.
On Wednesday, the index closed down 69.70 points or 0.52 percent, at 13,314.93. The index scaled an intraday high of 13,438.78 and a low of 13,325.62.
The Diversified Metal and Mining Index is declining 3.36 percent. Lundin Mining (LUN.TO) is losing 2.88 percent and HudBay Minerals (HBM.TO) is down 3.21 percent. First Quantum Minerals (FM.TO) is decreasing 9.14 percent and Capstone Mining (CS.TO) is falling 5.77 percent.
The Capped Health Care Index is losing 1.37 percent. Extendicare is falling 0.43 percent and Valeant Pharmaceuticals International (VRX.TO) is sinking 5.23 percent.
The Capped Industrials Index is down 1.33 percent. Air Canada (AC.TO) is decreasing 1.96 percent and Bombardier (BBD-A.TO) is declining 3.29 percent. Canadian National Railway (CNR.TO) is falling 1.18 percent and CAE (CAE.TO) is lower by 1.63 percent.
Finning International (FTT.TO) is dropping 6.35 percent. The construction equipment dealer said it would cut about 1,100 jobs in Canada and South America. Net income fell 42 percent to $33-million, in the latest quarter.
The Capped Telecommunication Services Index is down 1.02 percent. Manitoba Telecom Services (MBT.TO) is falling 1.54 percent and BCE (BCE.TO) is lower by 0.61 percent. TELUS (T.TO) is declining 1.21 percent.
The heavyweight Financial Index is falling 0.91 percent. Royal Bank of Canada (RY.TO) is losing 0.93 percent and Bank of Montreal (BMO.TO) is weakening by 1.21 percent. Toronto-Dominion Bank (TD.TO) is surrendering 0.86 percent and Bank of Nova Scotia (BNS.TO) is lower by 0.97 percent. National Bank of Canada (NA.TO) is declining 0.41 percent and Canadian Imperial Bank of Commerce (CM.TO) is decreasing 0.62 percent.
The Energy Index is decreasing 0.74 percent. Crude oil prices edged down Thursday morning to the lowest since August amid a weak demand outlook and concerns about the global economy.
Enbridge (ENB.TO) is down 0.88 percent and Crescent Point Energy (CPG.TO) is dipping 0.11 percent. Cenovus Energy (CVE.TO) is declining 1.00 percent and Canadian Natural Resources (CNQ.TO) is falling 1.86 percent. Pacific Exploration & Production (PRE.TO) is decreasing 3.57 percent and Imperial Oil (IMO.TO) is down 0.35 percent.
Encana (ECA.TO) is gaining 0.20 percent, after it reported a smaller-than-expected quarterly loss as production rose.
Suncor Energy (SU.TO) is down 0.16 percent and Canadian Oil Sands (COS.TO) is falling 0.52 percent. Suncor has sent a letter to shareholders of oil-sands producer Canadian Oil Sands that explains why COS shareholders should disregard a recommendation from the Board of COS opposing Suncor's full and fair C$4.7 billion offer to purchase all of the shares of Canadian Oil Sands.
The Gold Index is falling 0.27 percent. Gold prices held near 5-year lows Thursday morning despite an increase in physical demand, as traders continue to bet on an interest rate hike by the Federal Reserve.
IAMGOLD (IMG.TO) is falling 0.52 percent and Eldorado Gold (ELD.TO) is losing 1.82 percent. Yamana Gold (YRI.TO) is down 0.42 percent and Royal Gold (RGL.TO) is declining 2.11 percent.
Kinross Gold (K.TO) is lower by 1.24 percent. The company announced it has acquired 100% of the Bald Mountain gold mine and 50% of the Round Mountain gold mine in Nevada from Barrick Gold (ABX.TO) for $610 million in cash. Barrick Gold is climbing 3.31 percent.
The Capped Materials Index is down 0.06 percent. Agrium (AGU.TO) is lower by 0.31 percent.
The Capped Information Technology Index is climbing 0.06 percent. BlackBerry (BB.TO) is rising 2.54 percent.
Gildan Activewear Inc. (GIL.TO) cut its full-year outlook below expectations. The stock is now up 5.34 percent
Canadian Tire Corp. (CTC.TO) released earnings for its third quarter that gained 23 percent from last year. The stock is surging 11.11 percent.
Insurance company Manulife Financial Corp. (MFC.TO) reported a disappointing quarterly profit. Shares are falling 1.85 percent.
Pan American Silver (PAA.TO) is up 1.81 percent, after it produced 6.61 million ounces of silver and a quarterly record of 53,600 ounces of gold in the third quarter. Pan American now expects 2015 annual gold production to increase to between 175,000 and 180,000 ounces, up from the original annual production forecast of between 165,000 ounces and 175,000 ounces.
On the economic front, data from Statistics Canada showed that Canada new housing price index gained 0.1 percent in September, following a 0.3 percent increase in August. This was down from 0.2 percent rise seen by economists.
Eurozone's industrial production declined more-than-expected in September led by a slump in durable consumer goods output, and marked its second consecutive fall, figures from Eurostat showed Thursday.
Industrial production dropped 0.3 percent from August, when output fell 0.4 percent, which was revised from a 0.5 percent decrease. Economists had expected a modest 0.1 percent decline. In July, production increased 0.7 percent.
Germany's inflation accelerated as initially estimated in October, final data from the Destatis showed Thursday. Consumer prices rose 0.3 percent year-on-year in October after staying flat in September. The latest gain was the fastest since June, when prices climbed at the same pace.
France's EU measure of inflation increased in October, data published by the statistical office Insee showed Thursday. The harmonized index of consumer prices rose 0.2 percent on a yearly basis, after gaining 0.1 percent each in September and August. Economists had forecast it to stay at 0.1 percent.
France's current account turned to a surplus in September from a deficit in the previous month, largely due to the growth in the services trade surplus, the Bank of France said Thursday. The current account balance showed a surplus of EUR 0.5 billion in September against a deficit of EUR 0.1 billion in August.
House prices in the United Kingdom remain on an upward curve, the latest house price balance from the Royal Institution of Chartered Surveyors showed on Thursday with a score of 49 percent. That topped forecasts for 45 percent, and it was up sharply from 44 percent in September.
In commodities, crude oil futures for December delivery are down $0.68 or 1.58 percent at $42.25 a barrel.
Natural gas for December is up 0.011 or 0.49 percent at $2.274 per million btu.
Gold futures for December are down $2.50 or 0.23 percent at $1,082.40 an ounce.
Silver for December is up $0.042 or 0.29 percent at $14.305 an ounce.
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