TSX Ends Higher On Growth Optimism - Canadian Commentary

(RTTNews) - Canadian stocks ended at a two-week high Monday, tracking U.S. and European markets amid some encouraging jobs data from the U.S. as investors await cues on the forthcoming earnings season set to kick-off with Alcoa.

Elsewhere, the European markets ended higher, as euro area finance ministers meeting in Brussels later in the day and are expected to discuss the aid package to Greece. Nonetheless, most of the major Asian markets ended in the red.

The S&P/TSX Composite Index closed Monday at 12,208.87, up 73.96 points or 0.61 percent. The index touched an intraday high of 12,219.84 and a low of 12,134.91.

The Global Gold Index dropped 1.49 percent, although gold futures for August delivery jumped $22.20 or 1.8 percent to close at $1,234.90 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) shed 1.54 percent, while Goldcorp Inc. (G.TO) dropped 2.12 percent. IAMGOLD Corp. (IMG.TO) slipped 2.16 percent, while Barrick Gold Corp. (ABX.TO) inched up 0.07 percent. Kinross Gold Corp. (K.TO) dropped 2.61 percent, while B2Gold Corp. (BTO.TO) gained 0.85 percent.

The Capped Materials Index shed 0.12 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) up 0.92 percent.

The Diversified Metals & Mining Index dropped 0.13 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.39 percent and Teck Resources Limited (TCK.B.TO) shed 1.72 percent. Lundin Mining Corp. (LUN.TO) lost 3.59 percent, while Osisko Mining Corp. (OSK.TO) moved up 1.48 percent.

The Energy Index gathered 0.96 percent, with U.S. crude oil futures for July delivery dipping $0.08 to close at $103.14 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) gained 1.51 percent, while Enbridge Inc. (ENB.TO) moved up 0.34 percent. Talisman Energy Inc. (TLM.TO) gained 0.49 percent, while Encana Corp. (ECA.TO) added 1.88 percent. Canadian Natural Resources Limited (CNQ.TO) added 0.26 percent.

The Financial Index gained 0.75 percent with Manulife Financial Corporation (MFC.TO) up 3.41 percent, Bank of Nova Scotia (BNS.TO) up 0.22 percent, and Bank of Montreal (BMO.TO) gained 0.67 percent. Royal Bank of Canada (RY.TO) moved up 0.48 percent.

The Information Technology Index shed 0.13 percent, with BlackBerry (BB.TO) up 0.20 percent.

The Capped Industrials Index added 0.12 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 1.94 percent.

In economic news Statistics Canada said municipalities issued building permits worth $7.3 billion in the month of May, up 4.5 percent from April. The total value of building permits continued to trend upward on the strength of five consecutive monthly increases. The increase in May came mainly from the residential sector in Ontario and the non-residential sector in Quebec.

Consumer credit in the U.S. increased more than expected in May indicating notable growth in both revolving and non-revolving credit, a report from the Federal Reserve showed Monday. Consumer credit jumped $19.6 billion in May after rising by a downwardly revised $10.9 billion in April. Economists expected credit to rise $13.0 billion compared to the $11.1 billion increase originally reported for the previous month.

In economic news from the eurozone, German exports declined unexpectedly in May, while the growth in imports accelerated from the prior month, Destatis reported. Exports dropped 2.4 percent month-on-month, confounding expectations for a 0.1 percent rise. The decline in May revered 1.4 percent increase in April. Meanwhile, imports grew at a faster pace of 1.7 percent after rising 1.2 percent a month ago. It was forecast to remain flat in May.

Meanwhile, German industrial production declined more than expected in May due to notable decline in construction and energy output, the Federal Ministry of Economics and Technology said. Industrial output fell 1 percent in May from the previous month, the steepest since October 2012. Economists expected the production to fall 0.5 percent after rising 2 percent in April.

Eurozone investor confidence deteriorated in July after rising for two consecutive months, a survey by think-tank Sentix showed. The investor confidence index dropped to -12.6 in July from -11.6 in June, which was also worse-than the expected reading of -11.7.

Elsewhere in the eurozone, Greece reached an agreement with the European Union, the European Central Bank and the International Monetary Fund on economic reforms required for the next tranche of bailout fund, just hours ahead of the Eurogroup meeting Monday.

The troika agreed the macroeconomic outlook remains broadly in line with program projections, indicating prospects for a gradual return to growth in 2014 despite uncertain outlook. The eurozone ministers meeting in Brussels later in the day will formally decide on the next tranche of 8.1 billion euro aid to Greece. The funds are crucial for Athens to enable it repay bonds in August.