TSX Ends Higher Amid Looming Greece Default, Weak GDP -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end higher on Tuesday, tracking rising U.S. equity markets, even as data showed Canadian GDP logged an unexpected decline in April. Almost all sectors were in the green, with mining and financial sec

With the recent losing streak providing investors an opportunity at bargain hunting, the upside is being limited due to some weakness in commodities.

Statistics Canada reported Tuesday morning that Canadian Gross Domestic Product for April fell by 0.1 percent in April, following the decline of 0.2 percent in March. Economists expected an increase of 0.1 percent.

Markets in Europe ended in red, as investors continue to watch the unfolding drama in Greece. Greece has responded to a last-minute offer from creditors with a request for a two-year bailout and debt restructuring.

Markets in the United States ended modestly higher, holding on to gains partly due to bargain hunting following yesterday's sell-off, which pulled the Dow down to its lowest close in almost five months.

In economic news, home prices in major U.S. metropolitan areas unexpectedly grew at a slower annual rate in the month of April, according to a report released by Standard & Poor's on Tuesday.

The MNI Indicators report on Tuesday showed a notable increase by its Chicago business barometer in June, although the index continued to point to a contraction in regional business activity.

After reporting a modest improvement in U.S. consumer confidence in the previous month, a Conference Board report on Tuesday showed its consumer confidence index to have increased much more than expected in June.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,553.33, up 63.18 points or 0.44 percent. The index scaled an intraday high of 14,607.90 and a low of 14,492.23.

On Monday, the index closed down 317.94 points or 2.15 percent, at 14,490.15. The index scaled an intraday high of 14,738.48 and a low of 14,482.16.

Crude oil futures ended higher on Tuesday, ahead of the official weekly crude stockpile report, with talks between Iran and the western powers extended by a week.

The Energy Index gained 0.93 percent, with U.S. crude oil futures for August delivery adding $1.14 or 2.0 percent, to settle at $59.47 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.81 percent, while Canadian Natural Resources Limited (CNG.TO) gained 0.41 percent. Crescent Point Energy Corp. (CPG.TO) moved up 0.71 percent, while Encana Corp. (ECA.TO) gained 0.81 percent.

Cenovus Energy Inc. (CVE.TO) added 0.86 percent. The company has reached an agreement to sell Heritage Royalty Limited Partnership, a wholly-owned subsidiary, to Ontario Teachers' Pension Plan for gross cash proceeds of approximately $3.3 billion.

Gold futures ended lower amid speculation that Greece and its creditors could still agree on the modalities of the bailout aid badly needed by Athens.

The Gold Index slipped 0.13 percent, with gold for August delivery dropped $7.20 or 0.6 percent, to settle at $1,171.80 an ounce in electronic trade on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) added 0.15 percent, Barrick Gold Corp. (ABX.TO) dropped 0.22 percent, and Kinross Gold Corp. (K.TO) up 2.11 percent.

The Capped Materials Index moved up 0.25 percent, as Agrium Inc. (AGU.TO) jumped 4.57 percent and Agnico Eagle Mines Limited (AEM.TO) fell 1.53 percent. Franco-Nevada Corp. (FNV.TO) edged down 0.07 percent. Potash Corp. of Saskatchewan (POT.TO) gained 0.94 percent.

The Diversified Metals & Mining Index plummeted 2.30 percent, even as First Quantum Minerals Ltd. (FM.TO) dived 3.20 percent and Teck Resources (TCK.B.TO) fell 3.66 percent.

The heavyweight Financial Index edged down 0.07 percent, as Royal Bank of Canada (RY.TO) edged down 0.12 percent, National Bank of Canada (NA.TO) dipped 0.19 percent, and Bank of Montreal (BMO.TO) down 0.16 percent.

Toronto-Dominion Bank (TD.TO) gained 0.21 percent, Bank of Nova Scotia (BNS.TO) dropped 0.28 percent, and Canadian Imperial Bank of Commerce (CM.TO) fell 1.21 percent.

The Capped Health Care Index jumped 2.84 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 1.54 percent and Extendicare Inc. (EXE.TO) moved up 0.93 percent.

The Capped Industrials Index dipped 0.57 percent, as Bombardier Inc. (BBD-A.TO) plummeted 4.26 percent and Finning International Inc. (FTT.TO) fell 0.17 percent.

The Information Technology Index edged down 0.26 percent, as BlackBerry Inc. (BB.TO) fell 0.39 percent, Sierra Wireless, Inc. (SW.TO) jumped 2.54 percent, and Descartes Systems Group Inc. (DSG.TO) gained 1.21 percent.

The Capped Telecommunication Index gained 0.04 percent, as TELUS Corp. (T.TO) gained 1.37 percent, BCE Inc. (BCE.TO) inched up 0.15 percent, and Manitoba Telecom Services (MBT.TO) moved up 1.01 percent. Rogers Communication (RCI-B.TO) gained 1.72 percent.

Wi-Lan (WIN.TO) jumped 5.47 percent, after James Skippen announced plans to retire from his position as President and Chief Executive Officer.

Sun Life Financial (SLF.TO) gained 0.34 percent, after it agreed to acquire Prime Advisors Inc.

On the economic front, home prices in major U.S. metropolitan areas unexpectedly grew at a slower annual rate in April, a report from Standard & Poor's showed Tuesday. The S&P/Case-Shiller 20-City Composite Home Price Index rose 4.9 percent year-over-year in April, reflecting a modest slowdown from the 5.0 percent growth seen in March. Economists expected the index to accelerate to 5.4 percent.

While MNI Indicators released a report on Tuesday showing a notable increase by its Chicago business barometer in the month of June, the index continued to point to a contraction in regional business activity. The Chicago business barometer climbed to 49.4 in June from 46.2 in May, but a reading below 50 continues to indicate a contraction. Economists expected the index to rise to 50.6.

After reporting a modest improvement in U.S. consumer confidence in the previous month, a Conference Board report on Tuesday showed its index to have increased much more than expected in June. The consumer confidence index jumped to 101.4 in June from a downwardly revised 94.6 in May. Economists expected the index to rise to 97.4 from the 95.4 originally reported for the previous month.

Eurozone inflation slowed in June largely due to another sharp fall in energy prices, indicating that the central bank has to do more to achieve its inflation target. Inflation eased to 0.2 percent in June, in line with economists' forecast, from 0.3 percent in the prior month, flash data from Eurostat showed Tuesday.

Eurozone unemployment rate remained unchanged at the lowest level seen since early 2012 in May, official data revealed Tuesday. As expected by economists, the jobless rate held steady at 11.1 percent in May, Eurostat reported. This was the lowest rate recorded in the euro area since March 2012.

Germany's retail sales grew for the second straight month in May albeit at a slower pace compared to April, data from Destatis showed Tuesday. Retail sales turnover advanced 0.5 percent from April, when it was up 1.3 percent. This was the second consecutive increase. Sales were expected to remain flat in May.

Germany's unemployment rate held steady in May, figures from Destatis showed Tuesday. The jobless rate came in at an adjusted 4.7 percent in May, the same as in the previous month. In the same month of the previous year, the rate was 5.0 percent.

German unemployment declined less than expected in June, data from the Federal Labor Agency reportedly revealed Tuesday. The number of people out of work fell by 1,000 in June from the prior month, while it was forecast to drop by 5,000. The jobless rate remained unchanged at 6.4 percent in June, in line with expectations.

French consumer spending increased for the first time in three months in May, statistical office Insee reported Tuesday. Consumer spending gained 0.1 percent month-on-month in May, in contrast to the expectations for a 0.2 percent fall. Spending was flat in April and down 0.6 percent in March.

France's producer prices declined again in May largely due to a sharp fall in refined petroleum product prices, the statistical office Insee said Tuesday. Producer prices in the French market decreased 1.7 percent in May from last year. Prices in foreign market climbed 0.6 percent, while prices in total industry declined 1.2 percent.

The U.K. economy grew more than previously estimated in the first quarter, the Office for National Statistics said Tuesday. Gross domestic product gained 0.4 percent sequentially, revised up from the 0.3 percent growth estimated on May 28.

Consumer confidence in the United Kingdom surged in June, a survey from marketing research company GfK revealed on Tuesday, with an index score of +7. That handily beat forecasts for a reading of +2, and was up from +1 in May.