2014.11.0402:32:57UTC+00Canadian stocks decline after crude, oil prices in Saudi drop

Canadian stocks retreated from a previous advance after crude oil declined after oil prices were cut down by Saudi Arabia to its lowest since 2012.

The S&P/TSX shed 0.5% to 14,537.62, 4:00 pm, Toronto time. In the previous week, the gauge was able to accumulate a total of 0.5% to cut down its second consecutive month of loss down to 2.3%. Among the 10 major industry groups only five increased. The trading volume in the gauge was 15% below the 30-day average.

Torex Gold Resources Inc surged by 12% while Lightstream Resources Ltd. sank to its seventh consecutive day of loss. Suncor Energy Inc. and Athabasca Oil Corp. tumbled more than 3.5% each.

Chinese purchasing manager’s index (PMI) data’s final reading from HSBC inched up to 50.4, the measures highest level in three months. It is the same as the preliminary reading of HSBC and remains better than the September reading. Meanwhile the official PMI of China was a five-month low of 50.8 versus the 51.1 of September.

Oil prices was lowered by Saudi Arabia causing crude prices to drop as well.

Yesterday, Asian stocks swung from gains and losses with the regional benchmark index stepping down from its month-high dragged by South Korean declines and China’s PMI data but bolstered by Japanese stimulus. The Bank of Japan announced last week that voters voted 5-4 to increase monetary target expansion to 80 trillion yen or $726 billion. Earlier in the week, stocks has already bolstered due to the $1.2 trillion pension fund increase to bolster shares following the stronger-than-expected US economic growth from the Government of Pension Investment Fund. The monetary hike may trigger a global liquidity increase spurring speculations of increased demand for assets with higher risks such as Brazilian equities.

Today, Asian stocks surged with Japan’s Nikkei 225 crossing the 17,000 mark bolstered by the continuing stimulus from BOJ and GPIF monetary expansions.