TSX Ends Higher On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks settled higher Friday led by resource and financial stocks, tracking rising global equity markets even as the partial U.S. government shutdown entered a fourth day amid debt ceiling worries.

Asian stocks ended broadly lower overnight amid concerns a default would prove catastrophic if U.S. lawmakers fail to reach a compromise on raising the nation's debt limit before the October 17 deadline.

European stocks settled largely higher after some macroeconomic data revealed that eurozone industrial producer prices dropped in August and the German construction sector expanded for the fifth straight month in September, albeit at a slower pace.

The S&P/TSX Composite Index closed Friday at 12,758.65, up 23.53 points or 0.18 percent. The index touched an intraday high of 12,787.07 and a low of 12,729.98.

The Diversified Metals & Mining Index gained 1.17 percent, with Teck Resources Limited (TCK.B.TO) gaining 1.98 percent and Lundin Mining Corp. (LUN.TO) up 0.44 percent. Osisko Mining Corp. (OSK.TO) dipped 1.38 percent.

The Capped Materials Index slipped 0.05 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) gaining 0.47 percent.

Gold futures ended lower on Friday, as the dollar trended higher with investors focused on the impact of the partial U.S. government shutdown that enters the fourth day amid debt ceiling concerns.

The Global Gold Index dropped 0.73 percent, with gold futures for December delivery shedding $7.70 or 0.6 percent to close at $1,309.90 an ounce Friday on the Nymex.

Yamana Gold Inc. (YRI.TO) slipped 1.28 percent, while IAMGOLD Corp. (IMG) dropped 1.28 percent. Barrick Gold Corp. (ABX.TO) dropped 0.64 percent, while Goldcorp Inc. (G.TO) lost 1.00 percent. Kinross Gold Corp. (K.TO) slipped 1.40 percent, while Eldorado Gold Corp. (ELD.TO) dropped 0.90 percent.

The Energy Index gained 0.74 percent, with U.S. crude oil futures for November delivery gaining $0.53 or 0.5 percent to close at $103.84 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) gained 1.26 percent, Talisman Energy Inc. (TLM.TO) added 0.24 percent, and Suncor Energy Inc.(SU.TO) gathered 1.21 percent. Enbridge Inc. (ENB.TO) dropped 0.79 percent, while Imperial Oil Limited (IMO.TO) edged up 0.16 percent.

The Financial Index gained 0.17 percent with Bank of Montreal (BMO.TO) up 0.13 percent and Manulife Financial Corp. (MFC.TO) up 0.76 percent. The Bank of Nova Scotia (BNS.TO) slipped 0.15 percent, while Toronto-Dominion Bank (TD.TO) gained 0.15 percent. Royal Bank of Canada (RY.TO) added 0.47 percent, while National Bank of Canada (NA.TO) gathered 0.21 percent.

The Information Technology Index surrendered 0.55 percent, with smartphone maker BlackBerry Limited (BB.TO) shedding 1.13 percent.

The Capped Industrials Index gained 0.24 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 0.21 percent and Air Canada (AC.B.TO) gaining 13.10 percent.

Oil and gas company Solo Oil Plc (SOLO.L) announced that it has agreed in principle with Canadian oil and natural gas firm Reef Resources Limited (REE.V) to sell its 28.56 percent holding in the SW Ontario properties acquired in 2011, with a target closing date of December 31. Shares of Reef plummeted 16.67 percent.

In economic news from the eurozone, Germany's producer prices declined in August, data released by the Federal Statistical Office showed. The producer price index fell 0.5 percent year-on-year in August following a flat reading in July. On a monthly basis, the PPI fell 0.1 percent. Economists expected prices to remained unchanged on both counts.

Eurozone industrial producer prices dropped 0.8 percent in August from a year ago, largely due to a sharp fall in energy prices, Eurostat reported. Economists had forecast producer prices to fall 0.5 percent after staying flat in July.

Meanwhile, the Bank of Japan on Friday decided to hold its monetary easing plan unchanged while maintaining its economic assessment. At the end of a two-day meeting of the nine-member Policy Board, the central bank said it will keep the target for the monetary base expansion at an annual pace of JPY 60-70 trillion. The decision to refrain from any fresh policy moves was in line with expectations.