TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended a shade higher on Thursday, after bouncing back and forth between positive and negative territory for much of the day, struggling to find direction. The gains were led by mining stocks with energy and gold stocks under pressure with commodity prices on the rise.

Most equity markets in Europe ended in the red on Thursday, after eurozone industrial production declined unexpectedly in January. The euro fell to its lowest level in more than 12 years against the dollar on Wednesday, but has recovered some ground today.

Markets in the United States ended in positive territory, led by financial stocks after the Federal Reserve gave several major banks approval to launch capital repurchase programs and dividend increases. A larger than expected drop in weekly jobless claims is also overshadowing the unexpected decrease in retail sales.

After reporting a notable increase in first-time claims for U.S. unemployment benefits over the two previous weeks, a Labor Department report on Thursday showed that initial jobless claims to have pulled back more than anticipated in the week ended March 7.

Retail sales in the U.S. unexpectedly fell for the third straight month in February, partly reflecting a substantial drop in auto sales.

The benchmark S&P/TSX Composite Index closed Thursday at 14,770.72, up 31.52 points or 0.21 percent. The index scaled an intraday high of 14,809.06 and a low of 14,719.68.

On Wednesday, the index closed up 97.44 points or 0.67 percent, at 14,739.20. The index scaled an intraday high of 14,778.92 and a low of 14,637.62.

Gold futures ended slightly higher after the dollar trended lower against a basket of major currencies, after U.S. retail sales in February dropped more than expected.

The Gold Index fell 1.55 percent, although gold for April delivery inched up $1.30 or 0.1 percent to settle at $1,151.90 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Goldcorp (G.TO) shed 1.05 percent and Kinross Gold Corp (K.TO) fell 0.99 percent. Eldorado Gold Corp. (ELD.TO) dropped 0.99 percent, Yamana Gold Inc. (YRI.TO) surrendered 0.66 percent, B2Gold (BTO.TO) declined 3.06 percent, and IAMGOLD (IMG.TO) gained 1.61 percent.

The Capped Materials Index dropped 0.46 percent, due mainly to declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.05 percent and Agrium Inc. (AGU.TO) up 0.38 percent.

Franco-Nevada (FNV.TO) fell 3.23 percent, while Agnico Eagle Mines (AEM.TO) dropped 0.82 percent. Silver Wheaton (SLW.TO) fell 0.55 percent.

Crude oil plummeted to end at a six-week low on supply glut concerns, after the official oil report from the Energy Information Administration showed stockpiles to have risen more than expected last week.

The Energy Index dropped 1.57 percent, with U.S. crude oil futures for April delivery, $1.12 or 2.3 percent to settle at $47.05 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) gained 1.06 percent, Suncor Energy Inc. (SU.TO) dropped 1.78 percent, Canadian Natural Resources Limited (CNQ.TO) fell 1.20 percent, and Encana Corp. (ECA.TO) surrendered 2.87 percent.

Crescent Point Energy Corp. (CPG.TO) fell 0.53 percent, while Cenovus Energy Inc. (CVE.TO) down 2.60 percent.

The heavyweight Financial Index moved up 0.78 percent, with Bank of Nova Scotia (BNS.TO) up 0.81 percent, Bank of Montreal (BMO.TO) up 1.20 percent, and Royal Bank of Canada (RY.TO) added 0.33 percent.

National Bank of Canada (NA.TO) gained 0.76 percent, while Toronto-Dominion Bank (TD.TO) added 0.56 percent. Canadian Imperial Bank of Commerce (CM.TO) gathered 0.84 percent.

The Diversified Metals & Mining Index gained 1.45 percent, as First Quantum Minerals Ltd. (FM.TO) rose 0.51 percent, Lundin Mining Corp. (LUN.TO) gathered 3.43 percent, and Teck Resources Limited (TCK-B.TO) advanced 0.84 percent.

The Health Care Index slipped 0.22 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 1.28 percent.

Among other health care stocks, Extendicare Inc. (EXE.TO) fell 0.42 percent, while Catamaran Corp. (CCT.TO) added 1.55 percent.

The Capped Industrials Index gained 0.67 percent, with Bombardier Inc. (BBD.B.TO) down 1.61 percent and Air Canada (AC.TO) down 0.16 percent.

The Information Technology Index gathered 0.87 percent, with BlackBerry Limited (BB.TO) down 0.16 percent and Constellation Software Inc. (CSU.TO) down 0.38 percent. Sierra Wireless, Inc. (SW.TO) fell 2.41 percent and Descartes Systems Group Inc. (DSG.TO) added 0.41 percent.

The Capped Telecommunication Index added 0.14 percent, with Rogers Communications Inc. (RCI.B.TO) gaining 0.73 percent, BCE Inc. (BCE.TO) fell 0.52 percent and TELUS Corp. (T.TO) gathered 1.11 percent.

Penn West Petroleum (PWT.TO) shed 1.04 percent. The company reported a fourth-quarter net and comprehensive loss of C$1.77 billion or C$3.57 per share, compared to a loss of C$675 million or C$1.38 per share, prior year.

Colabor Group (GCL.TO) tanked 44.14 percent after the company's fourth quarter net loss widened to C$1.76 per share, from C$0.07 per share last year.

Premium Brands Holding (PBH.TO) rose 3.40 percent, after reporting fourth quarter earnings of C$0.05 per share, compared to C$0.04 per share a year ago.

Chorus Aviation Inc. (CHR-A.TO) gained 1.75 percent, after announcing the acquisition of Voyageur Airways.

On the economic front, the Canadian new housing price index for January dipped by 0.1 percent, according to a report from Statistics Canada on Thursday. Economists had expected an increase of 0.2 percent, following the 0.1 percent rise in December.

Statistics Canada also reported that Canadian industrial capacity utilization for the fourth quarter rose to 83.6 percent, compared to 83.2 percent in the third quarter. The result matched economists' expectations.

In economic news from the U.S., first-time claims for unemployment benefits pulled back more than anticipated in the week ended March 7, after reporting a notable increase over the two previous weeks, a Labor Department report showed Thursday. Initial jobless claims dropped to 289,000, a decrease of 36,000 from the previous week's revised level of 325,000. Economists expected jobless claims to pull back to 309,000 from the 320,000 originally reported for the previous week.

Retail sales in the U.S. unexpectedly fell for a third straight month in February, a report from the Commerce Department showed Thursday, with the decrease partly reflecting a substantial drop in auto sales. Retail sales slid 0.6 percent in February following a 0.8 percent decrease in January. Economists expected sales to rise by 0.3 percent.

Import prices in the U.S. rebounded slightly more than anticipated in February, a Labor Department report said Thursday, although export prices showed a modest drop. Import prices rose 0.4 percent in February after plunging by a revised 3.1 percent in January. Economists expected prices to edge up by 0.2 percent compared to the 2.8 percent drop originally reported for the previous month.

Meanwhile, the Labor Department said export prices edged down 0.1 percent in February following a 1.9 percent decrease in January. The modest drop was in line with economists' estimates.

With a drop in manufacturing inventories offsetting an increase in wholesale inventories, a Commerce Department report on Thursday showed U.S. business inventories nearly flat in January. Business inventories came in nearly unchanged for the second consecutive month in January. Economists expected inventories to edge up by 0.1 percent.

Eurozone industrial output declined unexpectedly in January as the impetus from weaker euro and oil prices were insufficient to maintain the growth in production. Industrial production fell 0.1 percent in January from December, which was the first decline in five months, data from Eurostat revealed Thursday. Economists had forecast output to grow 0.2 percent after rising revised 0.3 percent in December.

Germany's consumer prices recovered as estimated earlier in February, final data from Destatis showed Thursday. The consumer price index grew 0.1 percent in February from last year, confirming the flash estimate. This was in contrast to the 0.4 percent decrease in the previous month.

French consumer prices declined for the second straight month in February, the statistical office Insee showed Thursday. Consumer prices dropped 0.3 percent on a yearly basis in February, marking the second consecutive fall. Economists had forecast prices to fall 0.4 percent as registered in January.

The U.K.'s visible trade deficit narrowed largely due to a fall in oil imports in January, data from the Office for National Statistics showed Thursday. The visible trade deficit narrowed to GBP 8.4 billion in January from GBP 9.9 billion in December. The shortfall was forecast to decline to GBP 9.6 billion.

Ireland's economy grew for a second consecutive year in 2014 and at the fastest pace since 2007, marking the strongest growth in the EU, led by robust investments, exports and domestic demand. The Irish gross domestic product rose 4.8 percent in 2014 after a 0.8 percent gain in the previous year. In 2012, the economy contracted 0.3 percent. The country exited an EU/IMF bailout program in late 2013.