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TSX On Verge Of Record Highs, But Energy Stocks May Slide -- Canadian Commentary

June 17, 2014

WASHINGTON (Alliance News) - Canadian stocks are likely to retreat a bit from near historic highs early on Tuesday, weighed down by lower energy and gold prices.

Investors will be reacting to the latest batch of economic data from the US and Europe. Positive European markets could help lift sentiment to an extent.

With the two-day US Federal Reserve meeting getting underway today, the mood is likely to be a bit cautious at times.

Investors will also be monitoring the developments in Iraq amid reports that the main oil refinery has been shut due to the ongoing battle for a provincial capital.

Energy stocks are likely to be under pressure, tracking lower crude oil prices. Gold stocks may retreat too, with bullion prices coming off a three-week high.

On Monday, the benchmark S&P/TSX Composite Index ended up 38.82 points or 0.26% at 15,040.43, after scaling a high of 15,075.70 intraday, its highest levels since June 19, 2008.

In corporate news, Seabridge Gold Inc.(SEA.TO) reported that it has entered into a comprehensive Benefits Agreement with the Nisga'a Nation in respect of Seabridge Gold's KSM Project, located in northwest British Columbia.

In commodities, crude oil futures for August are down USD0.49 or 0.46% at USD105.81 a barrel, after declining to USD105.47 a barrel earlier.

Natural gas for July is up USD0.011 or 0.22% at USD4.718 per million btu.

Gold for August is down USD9.90 or 0.78% at USD1,265.40 an ounce.

Silver for July is down USD0.122 or 0.62% at USD19.593 an ounce. Meanwhile, copper is up marginally at USD3.052 per pound.

On the economic front, eurozone labor cost grew at a slower annual pace in the first three months of the year, rising 0.9% year-on-year, following a 1.6% gain in the fourth quarter last fiscal.

UK inflation eased to a 55-month low of 1.5% in May, following a fall in transport and food costs. Meanwhile, UK house price inflation accelerated in April, rising 9.9% annually, compared to an 8% rise in March.

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Source: Alliance News

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