Canada Stocks Little Changed as Oil Drops After OPEC Meeting – Bloomberg

Canadian stocks fluctuated, as energy producers slipped after OPEC producers failed to agree on a new output ceiling, offsetting gains among health-care producers.

The S&P/TSX Composite Index fell 8 points, or less than 0.1 percent, to 14,055.22 at 9:57 am. in Toronto. The index has stalled after a 19 percent rebound from a two-year low on Jan. 20. It is up 8.1 percent this year, the second most after New Zealand among developed-market nations tracked by Bloomberg. Trading volume on Wednesday was 47 percent lower than the 30-day average.

The recent rally has maintained Canadian shares' more expensive valuation relative to their U.S. peers. The S&P/TSX now trades at 21.4 times earnings, about 11 percent higher than the 19.3 times valuation of the S&P 500.

Global equities retreated amid the drop in crude prices and concerns about global growth. European Central Bank President Mario Draghi said the full effect of the central bank's stimulus measures have yet to spur growth, a day after manufacturing data disappointed from Japan to the euro zone. U.S. jobless claims dropped a third week, pushing the Federal Reserve closer to a potential interest-rate increase.

In Canada, Cenovus Energy Inc. lost 1.2 percent, pacing declines in energy producers. A meeting of the Organisation of Petroleum Exporting Countries in Vienna failed to produce a supply accord, leaving production unfettered amid a global supply glut. New York crude lost 1.4 percent, trading at about $ 48.34 a barrel.

Valeant Pharmaceuticals International Inc. added 3.3 percent for a second day of gains, trading near the highest level in a month. The stock extended an advance after disclosing Wednesday it will hold a conference call on June 7 to discuss its delayed first-quarter earnings.

The rally in Canadian equities, fueled by a rebound in commodities prices and financials, has stalled this week amid renewed concerns weak global growth will constrain demand for basic materials, while the prospect of higher U.S. interest rates has sent the dollar higher.

Federal Reserve Chair Janet Yellen's comments on May 27 pointed to a likely interest-rate increase in coming months that is dependent on economic improvement. Traders have now priced in a 52 percent chance for an increase in July, according to data compiled by Bloomberg.