TSX Ends Higher On Global Cues, Easing Tensions -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session Friday, tracking rising global equity markets amid easing concerns over the ongoing conflicts in Ukraine, Israel and Iraq.

With positive global markets, worries about the situation in Ukraine eased after news reports said Russia has concluded its military exercises along the border with eastern Ukraine and sent back troops to their respective bases permanently. With pro-Russian militants' offering a ceasefire, tensions eased further though the Ukrainian forces intensifying their attack on rebels positions could not be ruled out.

Meanwhile, the situation in Gaza also remained calm with a fresh 3-day ceasefire coming into effect. According to reports, Egypt is mediating talks between Israeli and Palestinian negotiators.

The S&P/TSX Composite Index closed Monday at 15,261.64, up 65.33 points or 0.43 percent. The index scaled a intraday high of 15,301.18 and a low of 15,196.31.

Crude oil ended higher ahead of the official crude supply data due later in the week, with investors treading cautiously while continuing to monitor developments in the ongoing geopolitical tensions in Ukraine, Iraq and Gaza.

The Energy Index edged up 0.07 percent, with U.S. crude oil futures for September delivery gaining $0.43 or 0.4 percent to close at $98.08 a barrel Monday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dipped 0.07 percent, Enbridge Inc. (ENB.TO) moved up 0.09 percent, Suncor Energy Inc. (SU.TO) added 0.37 percent, Talisman Energy (TLM.TO) dropped 1.97 percent, Encana Corp. (ECA.TO) added 0.42 percent, and Cenovus Energy Inc. (CVE.TO) advanced 0.45 percent.

The Healthcare Index dipped 0.05 percent with Valeant Pharmaceuticals Inc. (VRX) down 2.24 percent, Catamaran Corp. (CCT.TO) up 0.33 percent, and Extendicare Inc. (EXE.TO) gained 1.36 percent.

The Financial Index added 0.57 percent as all major banks ended in the red. Toronto-Dominion Bank gathered 1.60 percent, National Bank of Canada (NA.TO) up 0.93 percent, and Bank of Nova Scotia (BNS.TO) up 0.70 percent.

Canadian Imperial Bank Of Commerce (CM.TO) added 0.28 percent, Royal Bank of Canada (RY.TO) gained 0.52 percent, and Bank of Montreal (BMO.TO) advanced 0.47 percent.

Gold futures ended lower even as global equity markets moved higher, prompting investors to seek riskier assets.

Global Gold Index gained 0.30 percent, with gold futures for December delivery shedding $0.50 to close at $1,310.50 an ounce on the Nymex Monday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 1.37 percent, Barrick Gold Corp. (ABX.TO) down 0.34 percent, Goldcorp Inc. (G.TO) up 0.19 percent, and Eldorado Gold Corp. (ELD.TO) down 1.56 percent.

The Capped Materials Index gained 0.38 percent on gold mining stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) inching up 0.05 percent.

The Diversified Metals & Mining Index edged down 0.03 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.56 percent, Lundin Mining Corp. (LUN.TO) flat at $6.31 per share, and Teck Resources Limited (TCK.B.TO) up 0.58 percent.

The Capped Industrials Index gained 0.74 percent, with Bombardier Inc. (BBD.B.TO) up 0.52 percent and Air Canada (AC.A.TO) down 1.73 percent.

The Capped Telecommunications Index added 0.54 percent, with Rogers Communications Inc. (RCI.B.TO) adding 1.06 percent, Manitoba Telecom Services Inc. (MBT.TO) up 0.39 percent, Telus Corp. (T.TO) up 0.74 percent, and BCE Inc. (BCE.TO) up 0.41 percent.

The Information Technology Index gathered 0.92 percent, with BlackBerry Limited (BB.TO) up 0.29 percent and Avigilon Corp. (AVO.TO) plunging 7.66 percent.

The Capped Utilities Index moved up 0.26 percent with Fortis Inc. (FTS.IR.TO) moving up 0.49 percent.

Ensign Energy Services Inc. (ESI.TO) dropped 1.81 percent, after reporting second quarter net earnings of C$15.2 million or C$0.10 per share, up from C$3.3 million or C$0.02 per share a year ago. Adjusted net earnings totaled C$14.4 million or C$0.09 per share.

Pembina Pipeline Corp. (PPL.TO) gained 2.59 percent after reporting a second-quarter profit of C$77 million or C$0.21 per share, compared to C$93 million or C$0.30 per share in the year-ago quarter.

TearLab Corporation (TLB.TO) added 2.12 percent after indicating that its second quarter net revenues rose 42 percent to $5.0 million, from $3.5 million for the same period in 2013.

In economic news, a report from the Canada Mortgage and Housing Corporation showed Canadian housing starts to have risen unexpectedly to 200,100 units in July, up from 198,700 units in the preceding month.

In other economic news, the Organization for Economic Cooperation and Development said its composite leading index points to stable growth momentum in the region. The composite leading indicators, designed to anticipate turning points in economic activity relative to trend, remained unchanged at 100.5 in June.

The indicators for the United States and Canada also continue to point to stable growth momentum. This is the case for the United Kingdom as well, where the growth momentum remains above-trend rates, it said.

Japan's consumer confidence improved for the third consecutive month in July, data from the Cabinet Office showed Monday. The consumer confidence index rose to 41.5 in July from 41.1 in June.

Meanwhile, Russia's economy grew more than expected in the second quarter, but the rate of growth eased marginally, data showed Monday. Gross domestic product rose 0.8 percent from last year, after expanding 0.9 percent in the first quarter, data from the Federal Statistics Service revealed. It was forecast to grow by 0.7 percent.

Investors will be looking ahead to some Fed speeches and data on U.S. retail sales and consumer sentiment during this week. The U.S. Commerce Department's data on business inventories, data on import and export prices from the Labor Department are due.

Also due this week are the Federal Reserve's industrial production report for July, the results of New York Federal Reserve's manufacturing survey and weekly jobless claims data.