TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Tuesday, tracking rising U.S. and European equity markets after a slew of economic data from the U.S. with retail sales rising modestly, amid the continued focus on the Federal Reserve's monetary policy meet that begins on Wednesday.

The Fed will announce Thursday afternoon whether it will raise interest rates for the first time in about ten years. Rates have been at effectively zero since the financial market meltdown of 2008.

All major Canadian sectors ended in the green, with industrials, mining, financial, telecom and information technology among the biggest gainers.

Most markets in Europe and the United States ended in positive territory, following the release of a slew of economic data from the U.S. and Europe.

Economic data from the United States this morning was largely in line with expectations, to weaker than anticipated. Investors are attempting to read into how the data could potentially impact the Federal Reserve's decision on interest rates later this week. Analysts remain divided whether the Fed will raise rates for the first time in nearly a decade or keep rates at record lows due to the recent market volatility.

After reporting a notable increase in U.S. retail sales in the previous month, a report from the Commerce Department on Tuesday showed a modest uptick in sales in August.

Industrial production in the U.S. pulled back more than expected in August, while business activity for New York manufacturers continued to contract in September.

A separate report from the Commerce Department on Tuesday showed a modest uptick in total business inventories in July, with increase in retail inventories partly offset by decreases in manufacturing and wholesale inventories.

The benchmark S&P/TSX Composite Index closed Tuesday at 13,462.71, up 109.37 points or 0.82 percent. The index scaled an intraday high of 13,478.67 and a low of 13,365.31.

On Monday, the index closed down 108.13 points or 0.80 percent, at 13,353.34. The index scaled an intraday high of 13,459.99 and a low of 13,353.34.

The Diversified Metals & Mining Index gained 0.92 percent as Teck Resources Limited (TCK-B.TO) added 0.95 percent, while HudBay Minerals Inc. (HBM.TO) jumped 4.73 percent.

First Quantum Minerals (FM.TO) dipped 0.56 percent while Lundin Mining Corporation (LUN.TO) ended flat at $4.19 a share. Sherritt International Corp. (S.TO) dropped 3.00 percent.

The heavyweight Financial Index added 0.70 percent, as Royal Bank of Canada (RY.TO) gained 0.83 percent while National Bank of Canada (NA.TO) dropped 0.51 percent.

Toronto-Dominion Bank (TD.TO) gathered 0.77 percent, Bank of Nova Scotia (BNS.TO) moved up 0.12 percent, Bank of Montreal (BMO.TO) advanced 0.72 percent, and Canadian Imperial Bank of Commerce (CM.TO) gathered 0.64 percent.

Crude oil ended higher as the Federal Reserve begins its crucial two-day monetary policy meet on Wednesday. Few people know for sure whether the Fed will finally raise interest rates after eight years at zero.

The Energy Index advanced 0.25 percent, with U.S. crude oil futures for October delivery, the most actively traded contract, gaining $0.59 or 1.3 percent, to settle at $44.59 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) inched up 0.06 percent, Canadian Natural Resources Limited (CNQ.TO) added 0.92percent, Encana Corp. (ECA.TO) gained 1.06 percent and Cenovus Energy (CVE.TO) moved up 0.86 percent.

Suncor Energy Inc. (SU.TO) fell 0.51 percent, Baytex Energy Corp. shed 4.01 percent, and Canadian Oil Sands (COS.TO) lost 1.13 percent.

Penn West Petroleum (PWT.TO) jumped 6.06 percent, after entering into a definitive agreement for the sale of its properties in the Greater Mitsue area of Central Alberta for C$192.5 million in cash.

Gold futures ended lower as investors weighed a slew of economic data ahead of the outcome of the Federal Reserve's two-day Federal Open Market Committee policy meet starting on Wednesday.

The Gold Index shed 0.31 percent, with gold for December delivery shedding $5.10 or 0.5 percent, to settle at $1,102.60 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 1.99 percent, Barrick Gold (ABX.TO) added 0.36 percent, Eldorado Gold (ELD.TO) slipped 0.86 percent, and Kinross Gold Corp. (K.TO) shed 2.03 percent.

The Capped Materials Index added 0.49 percent, with Agnico Eagle Mines Limited (AEM.TO) down 0.61 percent, Agrium Inc. (AGU.TO) gained 1.52 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) up 1.44 percent.

The Capped Health Care Index gathered 0.73 percent, as Valeant Pharmaceuticals International (VRX.TO) gained 2.43 percent, Extendicare Inc. (EXE.TO) shed 1.62 percent, and Concordia Healthcare Corp. (CXR.TO) dipped 0.14 percent.

The Capped Information Technology Index gained 1.20 percent, as BlackBerry Limited (BB.TO) gathered 1.43 percent, and Descartes Systems Group (DSG.TO) fell 0.37 percent.

Constellation Software (CSU.TO) added 2.67 percent and Sierra Wireless (SW.TO) moved up 1.47 percent and Avigilon (AVO.TO) moved up 0.42 percent.

The Capped Telecommunication Index advanced 1.04 percent, as Rogers Communication (RCI-B.TO) gained 1.56 percent, BCE Inc. (BCE.TO) added 0.87 percent, and TELUS Corp. (T.TO) gathered 0.84 percent.

The Capped Industrials Index moved up 1.60 percent, as Bombardier (BBD-B.TO) added 0.60 percent, Finning International Inc. (FTT.TO) jumped 3.19 percent, and Air Canada slipped 0.17 percent.

On the economic front, the Canadian Real Estate Association reported Tuesday morning that Canadian existing home sales increased by 0.3 percent in August, on a month over month basis. On a year over year basis, sales rose by 0.4 percent.

U.S. retail sales in August edged up by 0.2 percent following an upwardly revised 0.7 percent increase in July. Economists expected retail sales to rise by 0.3 percent compared to the 0.6 percent growth originally reported for the previous month.

Industrial production in the U.S. fell 0.4 percent in August following an upwardly revised 0.9 percent increase in July. Economists expected production to dip by 0.2 percent compared to the 0.6 percent growth originally reported for the previous month.

The New York Fed's general business conditions index inched up to a negative 14.7 in September from a negative 14.9 in August. A negative reading indicates contraction in manufacturing activity. Economists expected the general business conditions index to show a more substantial improvement to a reading of negative 0.5.

A Commerce Department report on Tuesday showed a modest uptick in total business inventories in July, with increase in retail inventories partly offset by decreases in manufacturing and wholesale inventories,

Business inventories inched up 0.1 percent in July, following a downwardly revised 0.7 percent increase in June. The increase was in line with economist estimates.

Eurozone trade surplus grew for a second straight month in July and exceeded economists' expectations, figures from the Eurostat showed Tuesday. The seasonally adjusted trade balance rose to EUR 22.4 billion from EUR 21.9 billion in June. Economists had forecast a lower figure of EUR 21.4 billion. The latest surplus was the biggest in more than a year.

Employment growth in Eurozone accelerated marginally for the second straight quarter in the three months ended June, figures from Eurostat showed Tuesday. Employment rose a seasonally adjusted 0.3 percent in the second quarter, following a 0.2 percent climb in the previous quarter. In the fourth quarter last year, employment edged up 0.1 percent.

German economic confidence weakened for the sixth consecutive month in September to its lowest level in 10 months, survey data from the Mannheim-based Centre for European Economic Research or ZEW showed Tuesday.

The investor confidence index dropped to 12.1 points in September from 25 in August. The latest reading was the lowest since November 2014, when it was 11.5, and was below the expected score of 18.3.

France's EU measure of inflation slowed in August even as prices rebounded after declining in July, preliminary figures from the statistical office INSEE showed Tuesday. The harmonized index of consumer prices edged up 0.1 percent year-on-year. Economists had expected the measure to climb at July's 0.2 percent pace.

U.K. inflation returned to zero in August, as expected, on a renewed decline in oil prices, and factory gate prices continued its downward trend, casting doubt about the ability of the Bank of England to achieve the inflation target.

Consumer prices remained unchanged in August from a year ago, following a 0.1 percent rise in July, data released by the Office for National Statistics showed Tuesday. The slowdown was caused by a fall in fuel prices and slower growth in clothing costs.

UK house price inflation slowed sharply in July to its weakest level in nearly two years, figures from the Office for National Statistics showed Tuesday.

The house price index rose 5.2 percent year-on-year after a 5.7 percent increase in June. In April and May, house price inflation was 5.6 percent. The latest figure was the lowest since September 2013, when house prices rose 3.8 percent.