TSX Ends At Near 3-Year High -- Canadian Commentary

(RTTNews) - Canadian stocks moved up for a tenth straight day to end at a near three-year high on Tuesday, led by energy stocks as oil prices surged even as the extreme winter brought down manufacturing activity in the New York area.

A closely watched regional survey showed manufacturing activity in New York State expanded in February but at a slower pace, as factories received fewer new orders with a significant slackening in the growth in shipments.

The Federal Reserve Bank of New York said its Empire State Index, a measure of business activity in New York State, slipped to 4.48 for February, down from a reading of 12.51 for January. Economists expected the Empire State index at about 8.5.

The S&P/TSX Composite Index closed Tuesday at 14,077.47, up 22.71points or 0.16 percent. The index scaled an intraday high of 14,109.79 and a low of 13,054.76.

Gold futures ended higher for a ninth straight day on profit taking and after some data showing soft manufacturing activity in the New York area.

The Global Gold Index gained 0.30 percent, with gold futures for April delivery, the most actively traded contract, adding $5.80 or 0.4 percent to close at $1,324.40 an ounce Tuesday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) dropped 0.27 percent. Detour Gold Corp. (DGC.TO) edged up 0.30 percent, and Kinross Gold Corp. (K.TO) fell 1.05 percent. Yamana Gold Inc. (YRI.TO) dropped 0.95 percent, while Goldcorp Inc. (G.TO) added 0.10 percent.

The Capped Materials Index added 0.05 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.59 percent.

The Energy Index gained 0.49 percent, with U.S. crude oil futures for March delivery, the most actively traded contract, surging $2.13 or 2.1 percent to close at $102.43 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 1.77 percent, while Talisman Energy Inc. (TLM.TO, TLM) dropped 0.94 percent. Cenovus Energy Inc. (CVE.TO) shed 0.14 percent, while Suncor Energy Inc. (SU.TO) declined 0.30 percent. Encana Corp. (ECA.TO, ECA) gathered 2.16 percent.

The heavyweight Financial Index dropped 0.04 percent with Royal Bank of Canada (RY.TO) up 0.34 percent and the Bank of Nova Scotia (BNS.TO) up 0.13 percent. Bank of Montreal (BMO.TO) added 0.52 percent, while Toronto-Dominion Bank (TD.TO) dropped 0.06 percent.

The Diversified Metals & Mining Index added 0.42 percent, with Lundin Mining Corp. (LUN.TO) up 0.19 percent, and First Quantum Minerals (FM.TO) up 1.37 percent. Teck Resources Limited (TCK.B.TO) shed 1.26 percent.

The Information Technology Index moved up 0.52 percent, with BlackBerry Limited (BB.TO) surging 5.07 percent.

The Capped Industrials Index dipped 0.15 percent, with Bombardier Inc. (BBD.B.TO) dropping 2.22 percent.

In corporate news, Rona Inc. plunged 6.39 percent after reporting a decline in fourth-quarter profit with revenues also dropping, due mostly to the extreme cold weather.

Choice Properties Real Estate Investment Trust (CHP.UN.TO) shed 0.77 percent after revealing an adjusted profit of $36.8 million, with Funds from operations of $82.8 million.

Resolute Forest Products Inc., (RFP.TO) added 3.07 percent after reaching a five-year master collective agreement covering some 1,500 unionized workers in the United States.

In economic news from Canada, reported offshore holdings of Canadian securities declined by $4.3 billion in December, mostly Canadian dollar-denominated bonds. Meanwhile, Canadian investors gathered $3.7 billion of foreign securities, mostly U.S. dollar-denominated bonds.

A closely watched regional survey showed manufacturing activity in New York State expanded in February but at a slower pace, as factories received fewer new orders with a significant slackening in the growth in shipments. The Federal Reserve Bank of New York said its Empire State Index, a measure of business activity in New York State, slipped to 4.48 for February, down from a reading of 12.51 for January. Economists expected the Empire State index at about 8.5.

Meanwhile, confidence in the home building sector in the U.S. deteriorated lately, an industry survey showed Tuesday. The National Association of Home Builders said its housing market index slipped to 46 in February compared to a reading of 56 last month. Economists expected the measure to remain steady.

From Europe, consumer price inflation in the U.K. dropped below the 2 percent target for the first time since November 2009, giving room for the Bank of England to leave its record low interest rates unchanged for some more time and avoid any rate hike that risks economic recovery. Factory-gate inflation also moderated in January, reflecting decreases in petroleum and pharmaceutical products.

Consumer price inflation in the U.K. eased to 1.9 percent in January from 2 percent in December, the Office for National Statistics said Tuesday. The rate was expected to remain at 2 percent.

Elsewhere, Germany's investor confidence deteriorated for the second straight month in February, reversing the improving trend seen in recent months, amid concerns over the faltering recovery in emerging market economies and the subdued outlook for the U.S. recovery. The indicator, which measures investors' views of the economy over the next six months, dropped to to 55.7 in February from 61.7 in January, a survey by the Centre for European Economic Research/ZEW revealed Tuesday. Economists expected the score at 61.5.