TSX Ends Higher On Rate Cut, Greece -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fifth straight session on Thursday, tracking rising global equity markets, driven by Bank of Canada's decision to cut interest rates for the second time in six months and the Greek parliament's approval for the tough austerity measures needed to secure a fresh bailout.

While majority of the Canadian sectors ended in positive territory, energy, gold and mining stocks lagged due to weakness in commodity prices.

Markets in Europe ended in a positive note, as progress continued in the rescue act for Greece. Eurozone finance ministers reportedly agreed in principle to provide EUR 7 billion bridge loan to Greece during a conference call earlier today, after the Greek parliament approved austerity terms late Wednesday.

The European Central Bank held its key interest rates unchanged at a record low on Thursday for an eighth session in a row.

Markets in the United States also ended in the green, with news from Greece providing a boost to the markets. A positive reaction to the latest batch of earnings news and a larger than expected drop in weekly jobless claims also contributed to the positive mood.

Initial jobless claims in the U.S. pulled back more than expected in the week ended July 11, after reporting increases in first-time claims for U.S. unemployment benefits in each of the three previous weeks.

Homebuilder confidence in the U.S. came in at its highest level in almost ten years in July, the National Association of Home Builders said in a report on Thursday.

However, manufacturing activity in the mid-Atlantic region increased at a slower rate in July, with the index of regional manufacturing activity falling much more than expected, a report from the Federal Reserve Bank of Philadelphia showed Thursday.

The benchmark S&P/TSX Composite Index closed Thursday at 14,731.08, up 68.80 points or 0.47 percent. The index scaled an intraday high of 14,748.00 and a low of 14,693.99.

On Wednesday, the index closed up 62.88 points or 0.43 percent, at 14,662.28. The index scaled an intraday high of 14,706.34 and a low of 14,541.74.

Crude oil futures slipped to remain at a three-month low as fears of a global supply glut continued to grip markets after Iran's deal with the West on limiting its nuclear program in exchange for lifting sanctions. This is despite the sharp decline in stockpiles last week.

The Energy Index fell 0.35 percent, with U.S. crude oil futures for August delivery dropped $0.50 or 1 percent, to settle at $50.91 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.23 percent, while Canadian Natural Resources Limited (CNQ.TO) shed 0.09 percent. Crescent Point Energy Corp. (CPG.TO) dropped 1.30 percent, while Encana Corp. (ECA.TO) fell 1.20 percent.

Pacific Rubiales Energy Corp. (PRE.TO) jumped 10.96 percent, Cenovus Energy Inc. (CVE.TO) gained 0.70 percent, Canadian Oil Sands (COS.TO) dropped 1.15 percent, and Enbridge (ENB.TO) added 1.54 percent.

Gold futures slipped to remain at an eight-month low as investors mulled over the possibilities of a rate hike with a slew of upbeat economic data from the U.S. and remarks by the Fed Chief Janet Yellen pointing to an imminent hike this year.

The Gold Index shed 0.66 percent, with gold for August delivery dropping $3.50 or 0.3 percent, to settle at $1,143.90 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.49 percent, Barrick Gold Corp. (ABX.TO) slipped 3.93 percent, and Yamana Gold Inc. (YRI.TO) gained 0.93 percent. IAMGOLD Corp. (IMG.TO) fell 0.89 percent.

The Capped Materials Index surrendered 0.64 percent, as Agrium Inc. (AGU.TO) gained 0.43 percent and Agnico Eagle Mines Limited (AEM.TO) slipped 0.72 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) moved up 0.37 percent.

The Diversified Metals & Mining Index dived 2.54 percent, as First Quantum Minerals Ltd. (FM.TO) dived 6.08 percent, and HudBay Minerals (HBM.TO) fell 1.23 percent. Sherritt International (S.TO) dropped 4.57 percent, while Teck Resources Limited (TCK-B.TO) fell 1.92 percent. Lundin Mining Corp. (LUN.TO) dropped 1.38 percent.

The heavyweight Financial Index gained 0.77 percent, as National Bank of Canada (NA.TO) added 0.19 percent, and Bank of Montreal (BMO.TO) moved up 0.56 percent.

Toronto-Dominion Bank (TD.TO) moved up 1.05 percent, while Canadian Imperial Bank of Commerce (CM.TO) added 0.98 percent. Royal Bank of Canada (RY.TO) gathered 0.85 percent. Bank of Nova Scotia (BNS.TO) declined 0.19 percent.

Sun Life Financial (SLF.TO) inched up 0.02 percent, after the company announced it has been selected as the custodian and record keeper for the University of British Columbia Faculty Pension Plan.

The Capped Health Care Index added 0.89 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 1.72 percent, Concordia Healthcare Corp. (CXR.TO) gained 0.68 percent, Catamaran Corp. (CCT.TO) advanced 0.43 percent, and Extendicare (EXE.TO) dipped 0.24 percent.

The Capped Industrials Index gained 0.51 percent, as Bombardier Inc. (BBD-A.TO) dropped 4.04 percent and Finning International Inc. (FTT.TO) shed 0.50 percent. Canadian National Railway (CNR.TO) added 0.20 percent, while Air Canada (AC.TO) fell 1.89 percent.

Canadian Pacific Railway (CP.TO) added 0.45 percent.

The Capped Information Technology Index moved up 1.28 percent, as BlackBerry Limited (BB.TO) dipped 0.30 percent and Constellation Software (CSU.TO) moved up 2.14 percent. Descartes Systems Group (DSG.TO) added 1.13 percent, while Avigilon (AVO.TO) gathered 1.94 percent.

The Capped Telecommunication Index added 0.23 percent, as Rogers Communication (RCI-B.TO) dipped 0.40 percent, TELUS Corp. (T.TO) added 0.45 percent, BCE Inc. (BCE.TO) moved up 0.79 percent, and Manitoba Telecom Services (MBT.TO) gained 0.14 percent.

Magna International Inc. (MG.TO) shed 3.52 percent, after agreeing to acquire the Getrag Group of Companies for approximately 1.75 billion euros.

EnerCare (ECI.TO) gained 0.81 percent, after having completed its acquisition of Triacta Power Technologies.

Colabor Group Inc. (GCL.TO) added 1.68 percent, after reporting a second-quarter profit of $0.04 per share, compared to $0.06 per share in the previous year.

Absolute Software Corp. (ABT.TO) plunged 10.39 percent, after announcing its intent to divest Absolute Manage and Absolute Service.

In economic news, a Labor Department report on Thursday showed initial jobless claims to have pulled back more than expected in the week ended July 11, with claims dropping to 281,000, a decrease of 15,000 from the previous week's revised level of 296,000. Economists expected jobless claims to drop to 285,000 from the 297,000 originally reported for the previous week.

A Federal Reserve Bank of Philadelphia report on Thursday showed manufacturing activity in the mid-Atlantic region increased at a slower rate in July, with the Philly Fed diffusion index of current activity tumbling to 5.7 in July from 15.2 in June. While a positive reading indicates a continued increase in regional manufacturing activity, the index had been expected to show a much more modest decrease to 12.0.

Homebuilder confidence in the U.S. came in at its highest level in almost ten years in the month of July, the National Association of Home Builders revealed in a report on Thursday. The NAHB/Wells Fargo Housing Market Index came in at 60 in July, unchanged from the upwardly revised reading for June. Economists expected the index at 59, which would have been unchanged from the reading originally reported for the previous month.

Eurozone inflation slowed as estimated in June largely due to a fall in energy prices, final data from Eurostat showed Thursday. Inflation eased to 0.2 percent in June from 0.3 percent in May. It came in line with the flash estimate released on June 30.

The euro area trade surplus decreased in May due to a fall in exports from April, data published by Eurostat showed Thursday. The trade surplus fell to a seasonally adjusted EUR 21.2 billion in May from EUR 23.9 billion in April. It was forecast to drop to EUR 22 billion.