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

(RTTNews) - Canadian stocks surged ahead to end higher for a second day in a row on Friday, tracking rising global equity markets and supported by strong buying in energy, financial, and mining stocks after some upbeat economic data from the U.S.

Investors indulged in another round of strong buying after previous session's rebound from eight-month lows, as worries over the global economy eased after some encouraging data from the U.S.

After the impressive reports on U.S. initial jobless claims and industrial production yesterday, the market got another boost today with a report from the Commerce Department showing a more than expected increase in U.S. housing starts.

An encouraging report from Reuters and the University of Michigan showed U.S. consumer sentiment to have improved more than expected in October, rising to its highest level since July 2007.

Speculation that the Federal Reserve may delay the end of its asset buying program following recent comments from St. Louis Fed President James Bullard also contributed to the uptick.

Investors are also digesting a report from Statistics Canada that said Canadian consumer price inflation edged down to 2 percent in September, from 2.1 percent in the preceding month.

Month over month, the Canadian CPI was up 0.2 percent in September, after seeing a 0.1 percent rise in August. Core inflation came in unchanged at 2.1 percent in September, in line with expectations.

The benchmark S&P/TSX Composite Index closed Friday at 14,227.68, up 174.71 points or 1.24 percent. The index scaled a intraday high of 14,297.17 and a low of 13,142.04.

On Thursday, the index ended up 183.09 points or 1.3 percent at 14,052.97, snapping a four-day losing streak, having touched an eight-month low of 13,646.79 intraday.

Crude oil rebounded to end slightly higher supported by some positive economic data from the U.S. with housing starts and consumer sentiment rising more than expected, and as well on some bargain hunting.

On Thursday, a U.S. Energy Information Administration report showed crude oil inventories to have risen by 8.9 million barrels in the week ended October 10, while analysts anticipated an increase of 2.8 million barrels.

The Energy Index gained 1.32 percent, with U.S. crude oil futures for November delivery gaining $0.05 to close at $82.75 a barrel on the Nymex Friday.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 2.87 percent, Talisman Energy Inc. (TLM.TO) slipped 0.27 percent, and Bankers Petroleum Ltd. (BNK.TO) dived 4.55 percent.

Suncor Energy Inc. (SU.TO) gained 1.59 percent, Enbridge Inc. (ENB.TO) added 2.96 percent, and Encana Corp. (ECA.TO) moved up 0.45 percent.

The Financial Index jumped 2.03 percent, with Toronto-Dominion Bank (TD.TO) gaining 2.69 percent, Canadian Imperial Bank of Commerce (CM.TO) moved up 1.08 percent, Bank of Nova Scotia (BNS.TO) added 2.20 percent, Bank of Montreal (BMO.TO) gathered 1.72 percent, and National Bank of Canada (NA.TO) gained 1.85 percent.

Royal Bank of Canada (RY.TO) gained 1.91 percent, while Manulife Financial Corp. (MFC.TO) gained 2.87 percent.

Gold futures ended lower, extending losses for a second straight session tracking rising global equity markets after a slew of upbeat economic data from the U.S.

The Global Gold Index plunged 3.24 percent, with gold for December delivery shedding $2.20 or 0.2 percent to settle at $1,239.00 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Barrick Gold Corp. (ABX.TO) dropped 2.45 percent, Kinross Gold Corp. (K.TO) shed 1.20 percent, Yamana Gold Inc. (YRI.TO) down 3.55 percent, Eldorado Gold Corp. (ELD.TO) dived 4.02 percent, and Goldcorp Inc. (G.TO) tumbled 3.83 percent.

The Capped Materials Index shed 0.99 percent mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) gaining 0.93 percent.

The Diversified Metals & Mining Index jumped 2.06 percent, as First Quantum Minerals Ltd. (FM.TO) gained 3.55 percent, Lundin Mining Corporation (LUN.TO) added 3.68 percent, and Teck Resources Limited (TCK.B.TO) moving up 0.97 percent.

The Capped Industrials Index gained 2.02 percent, with Bombardier Inc. (BBD.B.TO) gaining 1.13 percent, Canadian Pacific Railway Limited (CP.TO) up 3.15 percent and Canadian National Railway (CNR.TO) gathered 2.36 percent.

The Information Technology Index added 1.26 percent, with smartphone maker BlackBerry Limited (BB.TO) gathering 2.29 percent.

The Healthcare Index gathered 1.57 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) up 1.56 percent, Catamaran Corp. (CCT.TO) up 0.18 percent, and Extendicare Inc. (EXE.TO) up 2.84 percent.

The Telecom Index added 0.60 percent with Rogers Communications Inc. (RCI.B.TO) up 1.39 percent, BCE Inc. (BCE.TO) up 0.32 percent, and TELUS Corp. (T.TO) up 0.26 percent.

Pacific Rubiales Energy Corp. (PRE.TO) gathered 1.67 percent after entering into a three year Memorandum of Understanding and Cooperation with Mexico's state oil company, Petróleos Mexicanos and its subsidiary entities, to discuss and analyze potential oil and gas cooperation in Mexico.

Atlantic Power Corp. (ATP.TO) shed 0.73 percent. Activist investor Clinton Group urged the company to revive a sale process it had abandoned recently.

Inovalis Real Estate Investment Trust (INO.UN.TO) dropped 3.65 percent after announcing it is acquiring two office properties in Paris and a surrounding suburb for $61 million.

In economic news from the U.S., a report from the Commerce Department showed housing starts increased by a more than expected 6.3 percent to a seasonally adjusted annual rate of 1.017 million in September, after tumbling 12.8 percent to a rate of 957,000 in August. Economists had expected housing starts to rise to a rate of 1.008 million.

Building permits rose 1.5 percent to a rate of 1.018 million in September.

Consumer sentiment in the U.S. improved unexpectedly in October, a report from Thomson Reuters and the University of Michigan showed Friday. A preliminary reading on the consumer sentiment index for October came in at 86.4 compared to the final September reading of 84.6. Economists expected the index to edge down to a reading of 84.0.

The eurozone economy grew more than previously estimated in the second quarter, latest estimates under the new ESA 2010 rule showed. Gross domestic product grew 0.1 percent sequentially in the second quarter, the Eurostat reported. The ESA 95 based estimation had showed a flat growth for the second quarter.

The annual growth for the currency bloc was revised to 0.8 percent in the second quarter from 0.7 percent.

Separately, data from Eurostat showed eurozone construction output to have increased at a faster pace in August. Construction output advanced 1.5 percent month-on-month following a 0.3 percent rise in July. Building output was up 1.4 percent and civil engineering advanced 2.1 percent.