TSX Ends Higher Amid Syria Concerns - Canadian Commentary

(RTTNews) - Canadian stocks ended modestly higher Wednesday, on some upbeat economic data from China and Europe, amid investor concerns over the developments surrounding Syria even as efforts by the U.S. and its allies for military strikes on the civil war ravaged country continued. Nonetheless, the gains were limited by lower commodity prices with both the gold and energy indices ending lower.

Meanwhile, the Bank of Canada maintained its target for the overnight rate at 1 percent as widely expected, indicating uncertain global economic conditions to be delaying the anticipated rotation of demand in Canada towards exports and investment. While the housing sector has been slightly stronger than anticipated, household credit growth has continued to slow and mortgage interest rates higher, pointing to a continued constructive evolution of household imbalances, the bank added.

China's service sector business activity increased at the fastest rate in five months in August as new orders expanded strongly, a survey by HSBC and Markit Economics revealed Wednesday. Meanwhile, the eurozone private sector expanded at the fastest pace in just over two years, although the growth was slightly weaker than initially estimated in August. Activity in the German private sector increased for the fourth successive month in August, final data from a survey by Markit Economics and BME showed.

Nevertheless, U.S. trade deficit widened in July after reporting the smallest deficit in over three years in the previous month, a Commerce Department report showed Wednesday.

The S&P/TSX Composite Index closed Wednesday at 12,757.81, up 17.31 points or 0.14 percent. The index touched an intraday high of 12,755.87 and a low of 12,692.06.

The Diversified Metals & Mining Index moved up 0.19 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.45 percent, Osisko Mining Corp. (OSK.TO) up 0.94 percent, and Teck Resources Limited (TCK.B.TO) added 0.69 percent. Lundin Mining Corp. (LUN.TO) gathered 0.88percent.

The Capped Materials Index dipped 0.12 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) adding 0.87 percent.

The Global Gold Index slipped 0.15 percent, with gold futures for December delivery plunging $22.00 or 1.6 percent to close at $1,390.00 an ounce Wednesday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) slipped 0.58 percent, while Yamana Gold Inc. (YRI.TO) fell 0.33 percent. B2Gold Corp. (BTO.TO) gained 1.06 percent, Goldcorp Inc. (G.TO) added 0.25 percent, and IAMGOLD Corp. (IMG.TO) gathered 0.31 percent.

The Energy Index shed 0.20 percent, with U.S. crude oil futures for October delivery dropping $1.31 or 1.2 percent to close at $107.23 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) slipped 0.94 percent, Talisman Energy Inc. (TLM.TO) added 0.18 percent, and Suncor Energy Inc.(SU.TO) dropped 0.94 percent.

The Financial Index added 0.20 percent with Royal Bank of Canada (RY.TO) inching up 0.06 percent and Bank of Montreal (BMO.TO) moving up 0.30 percent. Manulife Financial Corp. (MFC.TO) added 0.69 percent, while National Bank of Canada (NA.TO) added 0.04 percent.

The Information Technology Index added 0.91 percent, with BlackBerry Limited (BB.TO) adding 4.93 percent.

The Capped Industrials Index gained 1.00 percent, although Bombardier Inc. (BBD.A.TO, BBD.B.TO) slipped 0.63 percent.

Advertising & Marketing Services provider Mood Media Corp. (MM.TO) plummeted 27.78 percent after announcing that it is no longer pursuing discussions regarding a potential sale of the company with third parties or others as part of its strategic process.

Meanwhile, wealth management company Gluskin Sheff + Associates (GS.TO) gained 3.3 percent after reporting a fourth-quarter profit that rose to C$11.1 million or C$0.38 per share from C$2.3 million or C$0.08 per share in the same quarter last year.

In economic news Statistics Canada said the nation's trade deficit with rest of the world widened to $931 million in July from $460 million in June as merchandise imports grew 0.6 percent in July while exports declined 0.6 percent.

From the U.S., the Commerce Department said the trade deficit widened to $39.1 billion in July compared to a revised $34.5 billion deficit in June. Economists had expected the deficit to widen to $39.0 billion from the $34.2 billion originally reported for the previous month.

China's service sector business activity increased at the fastest rate in five months in August as new orders expanded strongly, a survey by HSBC and Markit Economics revealed Wednesday. The services business activity index rose to a five-month high of 52.8 in August from 51.3 in July. This followed a four-month period of relatively stagnant growth.

From the eurozone, activity in the German private sector increased for the fourth successive month in August final data from a survey conducted jointly by Markit Economics and BME showed. The seasonally adjusted composite output index, a measure of activity in the manufacturing sector and the service sector, rose to a seven-month high 53.5 in August from 52.1 in July. The preliminary estimates were for a score of 53.4.

Meanwhile, the eurozone private sector expanded at the fastest pace in just over two years, but the rate of growth was slightly weaker than initially estimated in August, final survey data from Markit Economics showed. The composite output index rose to 51.5 in August from 50.5 in July. The final reading was slightly below the flash estimate of 51.7.

A report from Eurostat revealed that retail sales in eurozone increased less than expected in July. Sales rose 0.1 percent in July from a month earlier compared with forecast for a 0.2 percent growth. This followed a 0.7 percent decline in June.

Elsewhere, service sector activity in the U.K. grew at the strongest pace in more than six-and-half years in August as incoming orders increased significantly, strengthening the recovery that started at the beginning of the year. The Markit/CIPS purchasing managers' index for the services sector climbed to 60.5 from 60.2 in July, contrary to economists' forecast for a decline to 59.7. The outcome of the survey, together with the stellar performance by the manufacturing sector and the construction sector, signals that the economy is on course to register a stronger growth in the September quarter.