TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Monday, tracking rising global equity markets and some upbeat manufacturing activity data from the U.S., but pared some of the gains after some weak Chinese manufacturing data.

Most global markets have returned to action today, following Friday's holiday, although the Japanese and British markets remained closed.

Although economic data is on the light side at the start of the new trading week, contraction in China factory activity in April heightened expectations for more stimulus measures. Investors will be watching closely for the U.S. employment report for April due Friday.

Markets in Europe ended on a positive note after return from a long holiday weekend. The eurozone manufacturing sector expanded slightly more than initially estimated in April, even as eurozone investor confidence index dropped but less than expected.

Markets in the United States also ended in the green, indicating a positive reaction to the latest batch of earnings news and which generated some buying interest, as well as bargain hunting following the notable pullback seen for much of last week's trading.

Reflecting a notable rebound in orders for transportation equipment, a Commerce Department report on Monday showed a sharp increase in new orders for U.S. manufactured goods in March. However, the much touted revised survey from HSBC Bank indicated the manufacturing sector in China to have slipped further into contraction in April.

The benchmark S&P/TSX Composite Index closed Monday at 15,367.47, up 27.70 points or 0.18 percent. The index scaled an intraday high of 15,403.45 and a low of 15,340.88.

On Friday, the index closed up 115.25 points or 0.75 percent, at 15,339.77, having scaled an intraday high of 15,362.88 and a low of 15,208.43.

The Diversified Metals & Mining Index shed 0.46 percent, as First Quantum Minerals Ltd. (FM.TO) dropped 3.53 percent, Lundin Mining (LUN.TO) up 1.27 percent, Sherritt International Corp. (S.TO) jumping 5.64 percent, and Teck Resources Limited (TCK.B.TO) adding 0.95 percent.

.HudBay Minerals (HBM.TO) fell 2.08 percent, after the company announced Saturday that 180 members of the International Association of Machinists and Aerospace Workers, began a strike.

Gold futures ended higher despite the dollar strengthening against some major currencies, with investors seeking cues as to when the Federal Reserve would begin hiking interest rates, even as a slew of economic data is scheduled for release later this week.

The Gold Index shed 0.29 percent, although gold for June delivery gained $12.30 or 1.1 percent to settle at $1,186.80 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.18 percent, Barrick Gold Corp. (ABX.TO) added 0.13 percent, Kinross Gold Corp (K.TO) gathered 0.67 percent, and Yamana Gold Inc. (YRI.TO) dropped 0.22 percent.

Eldorado Gold Corp. (ELD.TO) slipped 1.79 percent, while Agnico Eagle Mines Limited (AEM.TO) shed 1.14 percent.

The Capped Materials Index slipped 0.13 percent, with Agrium Inc. (AGU.TO) down 0.42 percent and Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.28 percent.

Franco-Nevada Corp. (FNV.TO) gained 0.45 percent, while Silver Wheaton (SLW.TO) dipped 0.08 percent.

Crude oil ended lower after some weak manufacturing activity report from China in April dulled demand growth prospects, even as the dollar trended higher on some upbeat U.S. factory orders report.

The Energy Index dipped 0.15 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, dropped $0.22 or 0.4 percent, to settle at $58.93 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) shed 0.10 percent, while Crescent Point Energy Corp. (CPG.TO) fell 0.13 percent.

Pacific Rubiales Energy Corp. (PRE.TO) surged 6.86 percent, Canadian Natural Resources Limited (CNQ.TO) dipped 0.85 percent, and Cenovus Energy Inc. (CVE.TO) lost 1.13 percent.

Encana Corp. (ECA.TO) added 2.00 percent, while Canadian Oil Sands Limited (COS.TO) gained 1.97 percent.

Ensign Energy Services (ESI.TO) soared 10.68 percent, despite a 74 percent drop in first quarter net income.

The heavyweight Financial Index gained 0.50 percent, with Bank of Nova Scotia (BNS.TO) adding 0.46 percent, while Toronto-Dominion Bank (TD.TO) gained 0.27 percent. Royal Bank of Canada (RY.TO) inched up 0.01 percent, while Canadian Imperial Bank of Commerce (CM.TO) dipped 0.05 percent.

National Bank of Canada (NA.TO) added 0.45 percent, while Bank of Montreal (BMO.TO) inched up 0.01 percent.

The Capped Health Care Index gained 0.47 percent as Concordia Healthcare Corp. (CXR.TO) gathered 3.22 percent, Catamaran Corp. (CCT.TO) shed 0.32 percent, and Extendicare Inc. (EXE.TO) moved up 0.50 percent. Valeant Pharmaceuticals International Inc. (VRX.TO) dropped 0.55 percent.

The Capped Industrials Index inched up 0.01 percent, as Air Canada fell 1.86 percent, Canadian National Railway Company (CNR.TO) added 2.81 percent, Finning International Inc. (FTT.TO) fell 0.99 percent, and Bombardier Inc. (BBD.B.TO) shed 0.82 percent.

Canadian Pacific Railway Limited (CP.TO) inched up 0.10 percent. The company announced that it has appointed Mark Erceg as its Executive Vice-President and Chief Financial Officer effective May 18, 2015.

The Information Technology Index moved up 0.52 percent, as BlackBerry Limited (BB.TO) dropped 1.76 percent, Descartes Systems Group Inc. (DSG.TO) added 2.84 percent, and Sierra Wireless, Inc. (SW.TO) up 2.92 percent.

The Capped Telecommunication Index shed 0.10 percent, as BCE Inc. (BCE.TO) fell 0.19 percent, Rogers Communications Inc. (RCI.B.TO) fell 0.09 percent, and TELUS Corp. (T.TO) declined 0.67 percent.

On the economic front, a Commerce Department report Monday showed a sharp increase in new orders for U.S. manufactured goods in March, reflecting a notable rebound in orders for transportation equipment. Factory orders surged 2.1 percent in March following a revised 0.1 percent decrease in February. Economists expected orders to increase by about 2.0 percent compared to the 0.2 percent uptick in the previous month.

The manufacturing sector in China slipped further into contraction territory in April, a revised survey from HSBC Bank showed on Monday, with a PMI score of 48.9. That missed the forecast of 49.4, and down from last month's preliminary reading of 49.2.

The Eurozone manufacturing sector expanded slightly more than initially estimated in April, final data from Markit showed Monday. The Purchasing Managers' Index dropped to 52 in April from 52.2 in March. But it was above the flash score of 51.9.

Eurozone investor confidence weakened slightly in May, survey data from the think tank Sentix revealed Monday. The investor confidence index dropped to 19.6 from 20 in April, which was the highest score since August 2007. It was forecast to drop to 19.3.