Canadian stocks were extending losses for a third session Tuesday morning as commodities continued to reel under selling pressure on worries over Greece after the nation announced a new election in June. Meanwhile, data from the euro zone came in encouraging with the region avoiding a recession in the first quarter, largely helped by a robust growth recorded by Germany.
The S&P/TSX Composite Index shed 46.95 points or 0.41% to 11,441.58, after losing nearly 250 points or just over 2% in the past two sessions to dip to a 6-month low.
The price of crude oil was little changed Tuesday morning amid upbeat economic data from the euro zone. Crude for June eased $0.03 to $94.75 a barrel.
In the oil patch, Lundin Petroleum (LUP.TO) was down close to 5%. Bonterra Energy (BNE.TO) and MEG Enrgy (MEG.TO) moved down nearly 2% each.
The price of gold was moving lower as the U.S. dollar was generally steady versus a basket of currencies amid a batch of encouraging economic data. Gold for June shed $5.90 to $1,555.10 an ounce.
Agnico-Eagle Mines (AEM.TO) and Goldcorp. (G.TO) slipped nearly 1% each, while Centerra Gold (CG.TO) was adding close to 3%.
Independent equipment finance company Element Financial Corp. (EFN.TO) reported a narrower first quarter net loss of C$261,000 or breakeven per share compared to a net loss of C$936,000 or C$0.26 per share in the prior year. The stock lost 4%.
Meanwhile, financial services provider HOMEQ Corp. (HEQ.TO) edged up 0.50% after it swung to profit in first-quarter, reporting net income of C$0.6 million or $C0.04 per share, compared to a net loss of C$0.8 million or C$0.06 per share in the same period last year.
In economic news from the U.S, the Labor Department said that the seasonally adjusted consumer price index was unchanged in April, after a 0.3 percent gain in March. Excluding volatile food and gas costs, core prices rose 0.2 percent.
A report from the U.S. Commerce Department revealed that retail sales in saw a modest increase in the month of April. The report showed that retail sales edged up by 0.1 percent in April following a revised 0.7 percent increase in March. Economists had expected sales to increase by 0.1 percent compared to the 0.8 percent growth originally reported for the previous month. Excluding a 0.5 percent increase in auto sales, retail sales still rose by 0.1 percent in April compared to a 0.8 percent increase in the previous month.
Separately, the Federal Reserve Bank of New York said its general business conditions index jumped to 17.1 in May from 6.6 in April, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to show a more modest increase to a reading of 10.0.
Elsewhere, the German economy expanded more than expected in the first quarter of 2012, data released by the Federal Statistical Office showed. Gross domestic product rose 0.5 percent from the prior quarter, when it fell 0.2 percent. Economists had expected only 0.1 percent growth for the first quarter.
Separate data from the Eurostat revealed that the euro zone economy avoided a recession in the first quarter. Gross domestic product for the 17-nation bloc remained flat sequentially after shrinking 0.3 percent in the fourth quarter. Economists were forecasting a 0.2 percent contraction for the first quarter
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