TSX Ends Higher On Energy, Financial Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks ended slightly higher on Tuesday, on some upbeat economic news from the U.S. and Europe, driven by energy, financial and telecom stocks, extending gains from the previous two sessions.

Most sectors ended in positive territory, with the exception of information tech, gold and mining stocks. The uptick comes as investors digested a number of key global economic reports.

The majority of the European markets ended in positive territory Tuesday, after eurozone private sector grew at the fastest pace in almost four years, while Germany's private sector expanded at the strongest pace in eight months in March. Meanwhile, U.K. inflation fell to zero for the first time on record in February.

Markets in the United States ended in the red, even as U.S. consumer prices ticked modestly higher in February, while new home sales unexpectedly climbed. The new home sales data is particularly encouraging, after Monday's disappointing existing home sales report.

Consumer prices in the U.S. rose in line with economist estimates in February, while new home sales unexpectedly increased in February.

The manufacturing sector in China contracted in March, a survey from HSBC Bank showed on Tuesday, well short of economists' forecast.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,081.26, up 124.05 points or 0.83 percent. The index scaled an intraday high of 15,103.18 and a low of 14,930.92.

On Monday, the index closed up 14.80 points or 0.10 percent, at 14,957.21. The index scaled an intraday high of 15,019.07 and a low of 14,925.10.

The Diversified Metals & Mining Index dropped 0.79 percent, as First Quantum Minerals Ltd. (FM.TO) surrendered 2.05 percent, Lundin Mining Corp. (LUN.TO) shed 2.00 percent, and Teck Resources Limited (TCK-B.TO) fell 2.08 percent.

Sherritt International (S.TO) ended flat at $2.99 a share, after announcing the appointment of Steve Wood as its Executive Vice President and Chief Operating Officer, effective April 27, 2015.

Crude oil ended higher on some upbeat economic news from the U.S. and Europe, even as the dollar continued to fluctuate against a basket of major currencies. Investors also await the official weekly oil data on Wednesday, with the American Petroleum Institute scheduled to release its report later today.

The Energy Index gained 1.16 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, gaining $0.06 to settle at $47.51 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) gained 1.35 percent, Suncor Energy Inc. (SU.TO) moved up 0.62 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 1.55 percent.

Crescent Point Energy Corp. (CPG.TO) added 0.86 percent, while Cenovus Energy Inc. (CVE.TO) gained 1.60 percent.

Encana Corp. (ECA.TO) added 1.00 percent, while Pacific Rubiales Energy Corp. (PRE.TO) shed 0.31 percent.

Gold futures ended higher, with investors opting for the safe haven of the precious metal as equity markets in the U.S. ticked lower amid continued worries over Greece's financial woes.

The Gold Index shed 0.54 percent, with gold for April delivery gaining $3.70 or 0.3 percent to settle at $1,191.40 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Kinross Gold Corp (K.TO) added 1.61 percent, Eldorado Gold Corp. (ELD.TO) jumped 4.11 percent, Barrick Gold Corp. (ABX.TO) fell 0.35 percent, and Yamana Gold Inc. (YRI.TO) added 2.36 percent.

Franco-Nevada Corp. (FNV.TO) dropped 1.99 percent, while Silver Wheaton Corp. (SLW.TO) dipped 0.20 percent.

Agnico Eagle Mines Limited (AEM.TO) gained 3.22 percent, after announcing that Ammar Al-Joundi will be joining the Company as President, effective April 6, 2015.

The Capped Materials Index moved up 0.11 percent, mainly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.94 percent and Agrium Inc. (AGU.TO) up 0.15 percent.

The heavyweight Financial Index gathered 0.50 percent, with Bank of Nova Scotia (BNS.TO) up 0.19 percent, and Bank of Montreal (BMO.TO) adding 0.38 percent.

National Bank of Canada (NA.TO) gained 0.99 percent, while Toronto-Dominion Bank (TD.TO) added 0.65 percent. Canadian Imperial Bank of Commerce (CM.TO) moved up 0.83 percent, while Royal Bank of Canada (RY.TO) added 0.40 percent.

The Health Care Index inched up 0.02 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) dipped 0.39 percent, Catamaran Corp. (CCT.TO) fell 0.08 percent, and Extendicare Inc. (EXE.TO) shed 1.33 percent.

The Capped Industrials Index advanced 0.61 percent, with Air Canada (AC.TO) adding 1.37 percent and Bombardier Inc. (BBD.B.TO) shedding 0.80 percent.

The Information Technology Index fell 0.11 percent, with BlackBerry Limited (BB.TO) inching up 0.17 percent, Sierra Wireless, Inc. (SW.TO) up 1.47 percent, and Descartes Systems Group Inc. (DSG.TO) up 0.53 percent.

The Capped Telecommunication Index gained 1.16 percent, with Rogers Communications Inc. (RCI.B.TO) gaining 0.36 percent and TELUS (T.TO) adding 1.17 percent. Manitoba Telecom Services Inc. (MBT.TO) moved up 1.34 percent, while BCE Inc. (BCE.TO) gathered 1.79 percent.

Lumenpulse Inc. (LMP.TO) shed 3.82 percent, after acquiring all shares of SDL Lighting Inc. for $3.2 million.

In economic news, consumer prices in the U.S. rose in line with economist estimates in February, with the increase partly reflecting a rebound in energy prices, a report from the Labor Department showed Tuesday. The consumer price index edged up by 0.2 percent in February after tumbling 0.7 percent in January. This was in line with the consensus estimate.

New home sales in the U.S. unexpectedly increased in the month of February with sales jumping to their highest level in seven years, a Commerce Department report revealed Tuesday. New home sales surged 7.8 percent to an annual rate of 539,000 in February from the revised January rate of 500,000. Economists expected new home sales to drop to a rate of 462,000 from the 481,000 originally reported for the previous month.

Meanwhile, St. Louis Federal Reserve President James Bullard told a London panel this morning that "Zero is no longer the appropriate interest rate for the U.S. economy."

Elsewhere, the manufacturing sector in China contracted in March, a survey from HSBC Bank showed on Tuesday, with a PMI score of 49.2. That was well shy of a forecast for 50.5, and down sharply from 50.7 in February.

China's economic growth could ease further in the first quarter of this year from a five-year low logged in the final three months of 2014, a top government think-tank predicted this week. Gross domestic product growth could ease to 6.85 percent in the first quarter of the year from 7.3 percent in the fourth quarter of 2014, the Chinese Academy of Social Sciences said.

Earlier this month, the State Information Centre predicted that China's economic growth is set to slow to 7 percent in the first quarter of this year.

Eurozone private sector grew at the fastest pace in almost four years in March as the expansion in the largest member country hit an eight-month high, signs the quantitative easing of the ECB has started to take effect.

Eurozone's flash composite Purchasing Managers' Index rose to 54.1 in March from 53.3 in February, data from Markit Economics revealed Tuesday. The index rose for the fourth consecutive month to reach the highest since May 2011. The reading stayed above the forecast of 53.6.

Germany's private sector expanded at the strongest pace in eight months in March, flash data from Markit Economics showed Tuesday. The composite Purchasing Managers' Index rose to 55.3 from 53.8 in February. The growth has stretched to 23 months and the latest rate of expansion was the most marked since July last year.

The French private sector expanded for the second month but the pace of growth eased in March, flash survey data published by Markit Economics showed Tuesday. The flash composite output index fell to 51.7 in March from 52.2 in February.

U.K. inflation fell to zero for the first time on record in February on sharp declines in fuel and food prices and factory-gate prices continued its negative trend. Consumer prices remained flat in February from last year after rising 0.3 percent in January, the Office for National Statistics said Tuesday. It was the first time that inflation was zero since comparable records began in 1989. Prices were expected to rise 0.1 percent.

House price inflation in the United Kingdom eased more-than-expected in January to its lowest level in ten months, figures from the Office for National Statistics showed Tuesday. The house price index rose 8.4 percent year-over-year in January, following a 9.8 percent increase in December. Economists had expected prices to increase by 8.9 percent.