TSX Ends Higher On Resource Stocks - Canadian Commentary

(RTTNews) - Canadian stocks ended at a seven-week high for a fourth straight session Monday, on higher commodity prices led by gold and material stocks. Investor sentiments were up despite some soft U.S. existing home sales data for June, anticipating an extended run for the Federal Reserve's quantitative easing program.

Markets were also boosted by hopes that Japan will move out of deflation after Prime Minister Shinzo Abe's ruling Liberal Democratic Party won a decisive victory in upper house elections. As well, some weaker-than-expected U.S. existing home sales in June fueled expectations the U.S. Federal Reserve will continue to maintain its monetary stimulus policy.

The S&P/TSX Composite Index closed Monday at 12,758.38, up 73.25 points or 0.58 percent. The index touched an intraday high of 12,761.44 and a low of 12,685.13.

The Global Gold Index surged 6.48 percent, with gold futures for August delivery soaring $43.10 or 3.3 percent to close at $1,336.00 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) jumped 7.71 percent, while Goldcorp Inc. (G.TO) moved up 5.75 percent. Barrick Gold Corp. (ABX.TO) soared 6.35 percent, while Kinross Gold Corp. (K.TO) surged 8.44 percent.

The Capped Materials Index added 3.81 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 0.05 percent.

The Diversified Metals & Mining Index gained 1.52 percent, with First Quantum Minerals Ltd. (FM.TO) gained 2.19 percent and Teck Resources Limited (TCK.B.TO) added 2.09 percent. Lundin Mining Corp. (LUN.TO) dropped 0.98 percent, while Osisko Mining Corp. (OSK.TO) surged 8.11 percent.

The Energy Index moved up 0.21 percent, with U.S. crude oil futures for September delivery shedding $0.93 or 0.9 percent to close at $106.94 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) gained 0.27 percent, while Enbridge Inc. (ENB.TO) moved up 0.49 percent. Talisman Energy Inc. (TLM.TO) added 0.50 percent, while Encana Corp. (ECA.TO) dipped 0.06 percent. Canadian Natural Resources Limited (CNQ.TO) shed 0.15 percent, while Cenovus Energy Inc. (CVE.TO) gathered 0.71 percent.

The Financial Index added 0.52 percent with Bank of Montreal (BMO.TO) up 0.54 percent, Royal Bank of Canada (RY.TO) up 0.88 percent, and Toronto-Dominion Bank gained 0.29 percent. Bank of Nova Scotia (BNS.TO) slipped 0.12 percent.

The Information Technology Index lost 0.30 percent, with BlackBerry Limited (BB.TO) adding 1.08 percent.

The Capped Industrials Index shed 0.23 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 1.40 percent.

Meat, meals and bakery company Maple Leaf Foods (MFI.TO) gained 2.46 percent after announcing its decision to divest its commercial turkey farms to Ernald Enterprises Ltd. and its breeder farms and hatchery operation to Cuddy Farms Ltd.

In economic news from the U.S., the National Association of Realtors said June existing home sales on a seasonally adjusted basis fell 1.2 percent to an annual rate of 5.08 million from a downwardly revised 5.14 million in May. Economists were expecting existing home sales to rise to around 5.25 million. Despite the modest decline, the June rate was second-highest since November 2009, as buyers scrambled to lock in low interest rates that have been on the rise this summer.

Elsewhere, the euro area government debt continued to increase in the first quarter, with highest burden in Greece, data released by Eurostat showed. The government debt to GDP ratio rose to 92.2 percent at the end of the first quarter, from 90.6 percent at the end of the fourth quarter of 2012. Securities other than shares accounted for 77.1 percent of general government debt. Greece logged the highest debt of 160.5 percent of GDP, followed by Italy with 130.3 percent and Portugal with 127.2 percent. The lowest ratios were seen in Estonia, Bulgaria and Luxembourg.

U.K. household finance sentiment was at its strongest level since the survey began in February 2009, data from Markit Economics showed Monday. The headline household finance index that measures changes in consumer behavior, rose to 41.5 in July from 40.8 in June. Nonetheless, the reading remained below the neutral 50 mark.

Germany's economic growth is set to slow in the third quarter, following a rebound in the second quarter of the year, Bundesbank said in its monthly bulletin on Monday. The central bank indicated signs of slowing down of economic growth were stronger.