TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for sixth straight session on Monday, tracking rising global equity markets boosted by surging crude oil prices, and driven by an uptick in mining stock and consumer staples stocks. The gains were, however, capped on some soft economic data from the U.S. with both homebuilder confidence and New York manufacturing data coming in short of expectations.

Most European markets ended in positive territory, notwithstanding the uncertainty over Greece's refusing to extend its bailout fund program. The European Union meeting concluded on Monday without any breakthrough, as Greece rejected an extension of the current bailout program, while Eurozone ministers refused to loosen their terms.

Eurogroup President Jeroen Dijsselbloem at a press conference after the meeting in Brussels said the best way forward for the Greek authorities would be to seek an extension of the program. Athens has time to seek an extension of the program until Friday, with the EUR 240 billion bailout program will expiring on February 28. However, some news reports say Greece is likely to seek a six-month extension of the bailout program on Wednesday.

Markets in the United States ended in the green, despite continuing concerns over Greece. Meanwhile, both the U.S. homebuilder confidence and the New York manufacturing data came in weaker than anticipated.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,284.61, up 19.80 points or 0.13 percent. The index scaled an intraday high of 15,349.01 and a low of 15,190.16.

On Friday, the index closed up 36.29 points or 0.24 percent, at 15,264.81. The index scaled an intraday high of 15,339.46 and a low of 15,256.73.

Crude oil ended end sharply higher ahead of the weekly official inventory data from the U.S. Energy Information Administration due Wednesday. The uptick comes on the back of some extensive production cuts by U.S. producers which is expected to have a significant impact on oil supplies.

The Energy Index shed 0.23 percent with U.S. crude oil futures for March delivery, jumping $0.75 or 1.4 percent to settle at $53.53 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) jumped 5.98 percent, Canadian Oil Sands (COS.TO) shed 0.59 percent, and Encana Corp. (ECA.TO) shed 0.91 percent. Niko Resources Ltd. (NKO.TO) soared 48.89 percent.

Canadian Natural Resources Limited (CNQ.TO) moved up 0.38 percent, while Crescent Point Energy (CPG.TO) gained 0.28 percent and Suncor Energy (SU.TO) dropped 0.63 percent.

Cenovus Energy (CVE.TO) fell 3.85 percent, while Talisman Energy (TLM.TO) gained 0.32 percent.

The Diversified Metals & Mining Index gained 1.03 percent, as Sherritt International Corp. (S.TO) gained 1.72 percent, First Quantum Minerals Ltd. (FM.TO) gathered 1.02 percent, Teck Resources (TCK-B.TO) gained 1.93 percent, HudBay Minerals (HBM.TO) added 1.06 percent, and Finning International Inc. (FTT.TO) gained 0.56 percent.

Gold futures ended at a six-week low Tuesday, with investors anticipating some low physical demand with the Chinese New Year looming ahead. The sharp drop comes despite concerns over the Greek bailout fund extension problems and a weak dollar.

The Global Gold Index dropped 3.59 percent, with gold for April delivery shedding $18.50 or 1.5 percent to settle at $1,208.60 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) added 0.79 percent, Barrick Gold Corp .(ABX.TO) shed 0.20 percent, and Kinross Gold (K.TO) plunged 5.90 percent.

Franco-Nevada (FNV.TO) slipped 0.31 percent, while Silver Wheaton (SLW.TO) gathered 1.18 percent. Yamana Gold (YRI.TO) gained 3.0 percent, while Agnico Eagle Mines (AEM.TO) inched up 0.02 percent.

The Capped Materials Index dived 2.02 percent, mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.61 percent and Agrium Inc. (AGU.TO) down 1.23 percent.

The heavyweight Financial Index added 0.72 percent, as Bank of Montreal (BMO.TO) gathered 0.36 percent, National Bank of Canada (NA.TO) climbed 0.50 percent, Royal Bank of Canada (RY.TO) moved up 0.18 percent, and Toronto-Dominion Bank (TD.TO) added 0.14 percent.

Bank of Nova Scotia (BNS.TO) gained 0.25 percent, while Canadian Imperial Bank of Commerce (CM.TO) advanced 0.52 percent.

Fairfax Financial (FFH.TO) jumped 7.77 percent, after reaching an agreement with Brit Plc.(BRIT.L), the global specialty insurer and reinsurer, to acquire all of the outstanding shares of Brit for about US$1.88 billion.

The Capped Industrials Index gathered 0.83 percent, with Bombardier Inc. (BBD.B.TO) shedding 1.94 percent.

Canadian Pacific Railway (CP.TO) gained 3.38 percent, after announcing an agreement with the Teamsters Canada Rail Conference on entering into binding arbitration, putting an end to the work stoppage by the company's locomotive engineers and conductors.

Air Canada (AC.TO) shed 1.02 percent.

The Information Technology Index shed 0.30 percent, as BlackBerry Limited (BB.TO) gained 2.07 percent, Constellation Software (CSU.TO) shed 1.23 percent, and Descartes Systems Group Inc. (DSG.TO) surrendered 0.67 percent.

The Healthcare Index slipped 0.71 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 0.30 percent, Extendicare Inc. (EXE.TO) dropped 1.01 percent, and Catamaran Corp. (CCT.TO) fell 1.55 percent.

The Capped Telecommunication Index moved up 0.37 percent, with BCE dipped 0.41 percent, TELUS Corp. (T.TO) gaining 0.37 percent, and Rogers Communications Inc. (RCI.B.TO) gathered 0.70 percent.

ProMetic Life Sciences (PLI.TO) added 4.35 percent, after the U.S. FDA granted an orphan drug designation status for PBI-4050, an orally active anti-fibrotic lead drug candidate, for the treatment of idiopathic pulmonary fibrosis.

Rona Inc. (RON.TO) jumped 7.82 percent, after reporting fourth quarter earnings of C$0.02 per share, compared to a loss of C$0.01 per share in the previous year.

On the economic front, the Canadian Real Estate Association reported Tuesday morning that Canadian existing home sales fell by 3.1 percent in January.

In economic news from the U.S., business activity among New York manufacturers continued to expand modestly in February, a Federal Reserve Bank of New York report said Tuesday, although the index of activity in the sector fell more than expected. The New York Fed's headline general business conditions index dipped to 7.8 in February from 10.0 in January. Economists had expected the index to edge down to 9.5.

A National Association of Home Builders report on Tuesday showed an unexpected deterioration in U.S. homebuilder confidence in February, reflecting the unusually high snowfall across much of the country. The NAHB/Wells Fargo Housing Market Index dropped to 55 in February after dipping to 57 in January. Economists expected the index to inch up to a reading of 58.

German economic confidence rose for the fourth consecutive month to a one-year high in February, despite the continuing uncertainty over future Greek funding plan, a closely watched survey showed Tuesday. The economic sentiment index rose to 53 from 48.4 in January, the Mannheim-based Centre for European Economic Research, or ZEW said. This was the highest score since last February, when the reading was 55.7. But the score was below the expected level of 55.

British inflation eased more than expected to a record low in January on falling motor fuel and food prices, vindicating the assessment that it is moving into negative zone. Output prices also logged its biggest fall on record. Inflation dropped to 0.3 percent in January from 0.5 percent in December, the Office for National Statistics reported Tuesday. It was forecast to slow to 0.4 percent. This was the lowest since records began in 1989.

House prices in the United Kingdom rose at the slowest pace in eight months during December, data from the Office for National Statistics showed Tuesday. The house price index climbed 9.8 percent annually in December after a 9.9 percent rise in the previous month. Economists expected a 9.5 percent increase.