TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third session on Wednesday, tracking rising global equity markets on hopes of a compromise in Greece, notwithstanding the pressure on energy stocks with oil prices trending lower after reports of further increase in supplies.

Markets in Europe ended in the red as investors remain cautious over the situation in Greece. Investors continue to await the outcome from the emergency meeting of eurozone finance ministers in Brussels later today.

Greece is trying to renegotiate a new austerity-free economic deal with its EU creditors to stave off a funding crunch when the current bailout program ends on February 28.

Markets in the United States struggled to find direction Wednesday, due to the uncertainties about the outcome of ongoing Greek debt negotiations with little or no significant economic data released today.

The benchmark S&P/TSX Composite Index closed Wednesday at 15,151.50, up 38.98 points or 0.26 percent. The index scaled an intraday high of 15,170.56 and a low of 15,080.74.

On Tuesday, the index closed up 11.82 points or 0.08 percent, at 15,112.52. The index scaled an intraday high of 15,147.73 and a low of 14,977.18.

Crude oil ended on renewed concerns of a supply glut after an official weekly oil report from the Energy Information Administration showed crude stockpiles in the U.S. to have surged more than expected last week.

A weekly U.S. Energy Information Administration report showed U.S. crude oil stockpiles to have jumped 4.9 million barrels in the week ended February 6, while analysts expected an increase of 3.4 million barrels. The report showed U.S. crude oil inventories at 417.9 million barrels end last week.

Gasoline stocks increased by 2.0 million barrels last week, while analysts anticipated a gain of 0.2 million barrels. Inventories of distillate, including heating fuel, increased 3.3 million barrels.

Industry group the American Petroleum Institute said its data showed that U.S. crude stocks rose by 1.6 million barrels for the week ended Feb. 6.

The Energy Index gained 0.34 percent with U.S. crude oil futures for March delivery, dropping $1.18 or 2.4 percent to settle at $48.84 percent a barrel on the New York Mercantile Exchange Wednesday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) fell 2.91 percent, Canadian Oil Sands (COS.TO) gained 3.79 percent, Talisman Energy (TLM.TO) gained 1.46 percent, and Encana Corp. (ECA.TO) shed 0.88 percent.

Canadian Natural Resources Limited (CNQ.TO) added 0.78 percent, while Cenovus Energy Inc. (CVE.TO) dropped 1.67 percent. Crescent Point Energy (CPG.TO) gained 0.57 percent and Suncor Energy (SU.TO) surrendered 0.23 percent.

The Diversified Metals & Mining Index fell 0.30 percent, as First Quantum Minerals Ltd. (FM.TO) edged up 0.16 percent, Teck Resources Limited (TCK.B.TO) surrendered 1.12 percent, and HudBay Minerals (HBM.TO) added 0.71 percent. Finning International Inc. (FTT.TO) dropped 2.24 percent.

Gold futures ended lower as the dollar trended higher after Germany dashed hopes of a deal with the new Greek government, fueling concerns about the fate of the eurozone.

The Global Gold Index dropped 1.30 percent, with gold for April delivery shedding $12.60 or 1.0 percent to settle at $1,219.60 percent on the New York Mercantile Exchange Wednesday.

Among gold stocks, Goldcorp Inc. (G.TO) shed 0.82 percent, Barrick Gold Corp .(ABX.TO) fell 1.31 percent, Yamana Gold Inc. (YRI.TO) dropped 2.14 percent, Eldorado Gold Corp. (ELD.TO) dived 1.14 percent, and B2Gold Corp. (BTO.TO) shed 4.50 percent.

Agnico Eagle Mines (AEM.TO) shed 1.42 percent, Franco-Nevada (FNV.TO) dropped 0.90 percent and Silver Wheaton (SLW.TO) inched up 0.04 percent.

Kinross Gold (K.TO) tanked 7.62 percent, after having reported a fourth quarter adjusted loss to shareholders of $0.01 per share. Analysts expected a profit of $0.01 per share.

The Capped Materials Index shed 0.46 percent, mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) gaining 1.35 percent and Agrium Inc. (AGU.TO) adding 0.94 percent.

The heavyweight Financial Index added 0.38 percent, as Bank of Montreal (BMO.TO) fell 0.08 percent, National Bank of Canada (NA.TO) dived 0.49 percent, Royal Bank of Canada (RY.TO) moved up 0.41 percent, and Toronto-Dominion Bank (TD.TO) added 0.81 percent.

Bank of Nova Scotia (BNS.TO) gained 0.56 percent, while Canadian Imperial Bank of Commerce (CM.TO) added 0.33 percent.

The Capped Industrials Index dipped 0.16 percent, as Bombardier Inc. (BBD.B.TO) gained 4.83 percent, and Canadian National Railway Company (CNR.TO) added 0.35 percent.

Air Canada (AC.TO) plummeted 10.01 percent after reporting fourth quarter adjusted EPS of C$0.23, which was short of the consensus estimate of C$0.24 per share.

Canadian Pacific Railway (CP.TO) dropped 1.02 percent. Teamsters Canada Rail Conference-Running Trades, or TCRC, has provided official notice of its intent to strike the company in the event there is no negotiated settlement. The company also announced that its Chief Financial Officer Bart Demosky has decided to leave effective May 31, 2015.

The Information Technology Index added 0.23 percent, as BlackBerry Limited (BB.TO) edged up 0.08 percent, Constellation Software (CSU.TO) gained 0.59 percent, and Descartes Systems Group Inc. (DSG.TO) moved up 0.32 percent.

The Healthcare Index climbed 0.64 percent, even as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 0.47 percent, Extendicare Inc. (EXE.TO) gained 1.76 percent, and Catamaran Corp. (CCT.TO) dropped 0.26 percent.

The Capped Telecommunication Index added 1.33 percent, with BCE adding 0.79 percent and Rogers Communications Inc. (RCI.B.TO) up 1.26 percent.

Ballard Power Systems (BLD.TO) sky-rocketed 64.32 percent, after entering into a Technology Solutions transaction with Volkswagen for approximately US$80 million.

FirstService (FSV.TO) jumped 6.92 percent after reporting fourth quarter adjusted EPS of $1.16, up from $0.96 in the previous year.

Intact Financial (IFC.TO) gained 1.21 percent, after agreeing to acquire Canadian Direct Insurance Inc. for $197 million.

In economic news, the National Institute of Economic and Social Research said on Tuesday that the U.K economy advanced at an accelerated rate in the November to January period. The think tank estimates that the GDP grew 0.7 percent in the three months ended January after the 0.5 percent increase in the three months ended December.

The German Chambers of Industry and Commerce, or DIHK, on Wednesday raised Germany's growth forecast for this year indicating lower oil prices and a weaker euro to have improved business sentiment. The growth forecast for this year was raised to 1.3 percent from 0.8 percent projected in October.

France's current account turned to a deficit in December from a surplus in the previous month, as the visible trade shortfall widened on the back of higher volume of oil imports, data from the Bank of France showed Wednesday.

The current account showed a deficit of EUR 1.9 billion versus a surplus of EUR 0.3 billion in November. The goods trade surplus widened to EUR 1.9 billion from EUR 1 billion, while the surplus in the services trade fell to EUR 0.1 billion from EUR 1.4 billion.