TSX Ends Higher On Global Cues, China Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session on Wednesday, tracking some positive display on Wall Street after an encouraging industrial production report and upbeat tech earnings, with better than expected Chinese growth data lifting sentiment.

Nonetheless, a slightly lower than expected rise in U.S. housing starts and concerns over developments in Ukraine appeared worrisome. As widely expected, Bank of Canada decided to hold interest rates unchanged at 1 percent.

Investor sentiments were also lifted after the Federal Reserve's Beige Book report, a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts, said U.S. economic activity improved throughout most of the country as weather conditions improved.

Tracking higher gold and crude oil prices, shares from materials and energy sectors moved up, with industrial, information technology and telecom stocks are also trending higher.

The S&P/TSX Composite Index closed Tuesday at 14,446.52, up 142.60 points or 1.00 percent. The index scaled an intraday high of 14,448.64 and a low of 14,303.92.

Crude oil ended a tad higher after the Fed Chief Janet Yellen indicated the central bank would continue to keep its benchmark interest rates at very low levels for a considerable period of time. The marginal rise comes, despite an official Energy Information Administration report revealing crude oil stockpiles in the U.S. to have increased four times more than expected last week.

The Energy Index gained 1.50 percent, with U.S. crude oil futures for May delivery, inching up $0.01 to close at $103.76 a barrel Wednesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.96 percent, while Encana Corp. (ECA.TO) jumped 4.53 percent. Canadian Natural Resources Ltd. (CNQ.TO) moved up 0.71 percent, while Husky Energy Inc. (HSE.TO) slipped 0.26 percent. Crescent Point Energy Corp. (CPG.TO) added 1.90 percent, while Talisman Energy Inc. (TLM.TO) gathered 2.36 percent.

The Global Gold Index dropped 0.16 percent, with gold futures for June delivery, adding $3.20 or 0.3 percent to close at $1,303.50 an ounce Wednesday on the Nymex.

Agnico Eagle Mines Limited (AEM.TO), Yamana Gold Inc. (YRI.TO) and Osisko Mining Corp. (OSK.TO) have entered into an agreement by which Agnico Eagle and Yamana will jointly acquire 100% of Osisko's issued and outstanding common shares for total consideration of approximately C$3.9 billion, or C$8.15 per share.

Osisko Mining Corp. is up 6.86 percent, while Agnico Eagle Mines Limited dropped 8.19 percent and Yamana Gold Inc. down 3.81 percent.

Among other gold stocks, Kinross Gold Corp. (K.TO) added 0.89 percent, Barrick Gold Corp. (ABX.TO) shed 0.88 percent, and Goldcorp Inc. (G.TO) gathered 0.85 percent.

The Capped Materials Index added 0.38 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.70 percent.

The heavyweight Financial Index gained 0.80 percent with the Toronto-Dominion Bank (TD.TO) up 0.82 percent, Royal Bank of Canada (RY.TO) up 0.55 percent, Bank of Montreal (BMO.TO) up 0.88 percent, and National Bank of Canada (NA.TO) up 0.56 percent. Bank of Nova Scotia (BNS.TO) added 0.80 percent, while Manulife Financial Corp. (MFC.TO) gained 1.55 percent.

The Diversified Metals & Mining Index gathered 1.19 percent, with Teck Resources Limited (TCK.B.TO) edging up 0.04 percent, Lundin Mining Corp. (LUN.TO) down 1.30 percent, First Quantum Minerals Ltd. (FM.TO) up 1.70 percent, and Sherritt International Corp. (S.TO) up 1.06 percent.

The Information Technology Index gained 1.26 percent, with BlackBerry Limited (BB.TO) dropping 1.26 percent.

The Capped Industrials Index added 1.18 percent, with Bombardier Inc. (BBD.B.TO) down 0.73 percent and Air Canada (AC.B) moving up 1.79 percent. Canadian National Railway Company (CNR.TO) gained 1.95 percent, while Canadian Pacific Railway Limited (CP.TO) added 1.72 percent.

In other corporate news, IMAX Corp. (IMX.TO) and TCL Multimedia Technology Holdings Ltd. have announced a joint-venture partnership with Wasu Digital TV Media Group (WASU) as part of their IMAX TCL home theater initiative. Imax Corp. shares are up 1.22 percent.

Metro Inc. (MRU.TO) gained 2.46 percent after reporting better than expected earnings of C$1.07 per share from continuing operations for the quarter ended March 15, although significantly down from the high earnings it had posted in the same quarter last year.

TransAlta Corp (TA.TO) added 0.61 percent after announcing on Tuesday its selection as the preferred bidder to build the natural-gas fired generating station in South Hedland, Western Australia.

In economic news from Canada, the Bank of Canada maintained its interest rates at 1 percent. The bank noted that a lower exchange could provide more support to exports.

In economic news from the U.S., industrial production rose more than expected in March, the Federal Reserve revealed in a report on Wednesday, with a notable upward revision to the pace of production growth in the previous month. Industrial production in the U.S. increased 0.7 percent in March after surging up by an upwardly revised 1.2 percent in February. Economists expected production to rise by about 0.5 percent compared to the 0.6 percent increase originally reported for the previous month.

Housing starts in the U.S. showed a notable increase in March, a report from the Commerce Department showed Wednesday, although still well below economist estimates. Housing starts climbed 2.8 percent to an annual rate of 946,000 in March from the revised February estimate of 920,000. Economists expected housing starts to surge up to an annual rate of 970,000 from the 907,000 originally reported for the previous month.

From Europe, U.K.'s unemployment rate fell below the 7 percent threshold, with the jobless rate at 6.9 percent of the labor force in three months to February, the lowest since February 2009, data from the Office for National Statistics showed Wednesday. This was below the 7.1 percent logged in the September to November period, and the 7.9 percent posted in the three months to February 2013. Meanwhile, the unemployment rate among the 16-24 age group was 19.1 percent.

In Asia, China's gross domestic product expanded 7.4 percent on year in the first quarter of 2014, topping expectations for 7.3 percent growth following the 7.7 percent gain in the previous three months. Nonetheless, the growth was its slowest level in 18 months.