TSX Ends Higher On Upbeat Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fourth straight session Tuesday, tracking rising global equity markets amid easing concerns over the Ukraine-Russia conflict, and some upbeat economic news from the U.S. with a notable jump in housing starts.

Meanwhile, foreign ministers of Ukraine and Russia are reported to have had meetings for more than five hours in Berlin. Investors also remained cautious ahead of the minutes from U.S. Federal Reserve's July monetary policy meeting, due Wednesday.

A report from the U.S. Labor Department showed consumer price inflation to have increased in July, but at a slower pace. The report, coming after last week's tepid data on producer price inflation, has raised expectations that the low interest rate regime will see an extended run.

Energy stocks made major gains after recent weakness, with Health Care also rising impressively.

The S&P/TSX Composite Index closed Tuesday at 15,477.17, up 138.70 points or 0.90 percent. The index scaled a intraday high of 15,496.32 and a low of 15,339.53.

On Monday, Canadian stocks ended higher amid easing concerns over the Ukraine-Russia conflict, with reports indicating a possible meeting between the two countries for an end to hostilities.

Crude oil ended sharply higher Monday, ahead of the weekly official oil report from the Energy Information Administration, weighed down on reports that global demand for oil is likely to decline.

The Energy Index jumped 1.85 percent, although U.S. crude oil futures for September dropped sharply lower by $1.93 or 2.0 percent to close at $94.48 a barrel Tuesday on the Nymex.

Among energy stocks, Bellatrix Exploration Ltd. (BXE.TO) surging 10.37 percent, Cenovus Energy Inc. (CVE.TO) gained 1.57 percent, Enbridge Inc. (ENB.TO) added 1.17 percent, Suncor Energy Inc. (SU.TO) moved up 1.34 percent, Encana Corp. (ECA.TO) added 2.63 percent, Talisman Energy (TLM.TO) gathered 1.87 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 2.05 percent.

The Healthcare Index surged 1.99 percent with Catamaran Corp. (CCT.TO) up 1.55 percent, and Extendicare Inc. (EXE.TO) up 0.81 percent. Valeant Pharmaceuticals International, Inc. (VRX.TO) jumped 4.11 percent.

The Financial Index added 0.82 percent with Toronto-Dominion Bank adding 0.46 percent and Bank of Nova Scotia (BNS.TO) up 0.88 percent.

Among other major banks, Canadian Imperial Bank Of Commerce (CM.TO) added 1.09 percent, Royal Bank of Canada (RY.TO) jumped 1.49 percent, and Bank of Montreal (BMO.TO) moved up 1.14 percent.

Gold futures ended lower with investors tracking rebounding European equity markets, turning to the riskier equity assets, supported by a strong dollar after some upbeat homebuilder confidence data from the U.S.

Global Gold Index moved up 0.20 percent, as investors sought riskier assets tracking rising global equity markets on some positive economic data from the U.S.

Among gold stocks, B2Gold Corp. (BTO.TO) dropped 1.06 percent, Yamana Gold Inc. (YRI.TO) shed 0.95 percent, Barrick Gold Corp. (ABX.TO) down 0.29 percent, Goldcorp Inc. (G.TO) down 0.13 percent, and Detour Gold Corp. (DGC.TO) slipped 0.64 percent.

The Capped Materials Index inched up 0.03 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) advancing 0.29 percent.

The Diversified Metals & Mining Index dropped 0.32 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.25 percent, Lundin Mining Corp. (LUN.TO) down 1.95 percent, and Teck Resources Limited (TCK.B.TO) dropped 0.64 percent.

The Capped Industrials Index gained 0.59 percent, with Bombardier Inc. (BBD.B.TO) ending flat at $3.81 and Air Canada (AC.B.TO) up 1.06 percent.

The Capped Telecommunications Index added 0.36 percent, with Rogers Communications Inc. (RCI.B.TO) gaining 0.76 percent, Manitoba Telecom Services Inc. (MBT.TO) up 0.03 percent, and BCE Inc. (BCE.TO) moving up 0.35 percent.

The Information Technology Index moved up 0.12 percent, with BlackBerry Limited (BB.TO) adding 1.60 percent, Avigilon Corp. (AVO.TO) gathering 0.88 percent, and Celestica Inc. (CLS.TO) gained 0.68 percent.

The Capped Utilities Index advanced 0.39 percent with Fortis Inc. (FTS.IR.TO) adding 0.35 percent.

The Consumer Staples Index added 0.75 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) adding 1.42 percent, on reports that the company is among the shortlisted suitors to buy a stake worth $16 billion in China's Sinopec Sales.

Veresen Inc. (VSN.TO) shares are down 0.80 percent, after announcing Monday that Energy Fundamentals Group Inc. has claimed that it has the option to acquire up to 20% of Veresen's equity interest in the Jordan Cove liquefied natural gas terminal and related assets in Coos Bay, Oregon.

Pethealth Inc. (PTZ.TO), in a clarification to Toronto Stock Exchange, has confirmed that it is reviewing strategic alternatives for the potential sale of the company. The stock is down more than 2.63 percent.

Dominion Diamond Corp. (DDC.TO) added 0.07 percent after registering total second-quarter sales of $277.3 million from Ekati and Diavik Rough Diamond mine, compared to $261.8 million, prior year. The stock is up marginally.

In economic news from the U.S., a report from the U.S. Labor Department showed consumer prices to have risen at a slower pace in July. The consumer price index was up by a seasonally adjusted 0.1 percent in the month, in line with expectations. Core CPI, which excludes volatile food and energy costs, also increased 0.1 percent, against forecasts for a 0.2 percent rise.

Meanwhile, data from the Commerce Department showed U.S. housing starts to have rebounded substantially in July, jumping 15.7 percent to an annual rate of 1.093 million, after falling 4 percent to a revised 945,000 in June. Economists expected housing starts to climb to a rate of 963,000 from the 893,000 originally reported for the previous month.

The U.S. Commerce Department also reported building permits, an indicator of future housing demand, to have shot up 8.1 percent to an annual rate of 1.052 million in July from the revised June rate of 973,000. Economists anticipated building permits to rise 2.5% to 1.0 million units.

From Europe, house prices in the United Kingdom rose at a slightly slower pace in June compared to May, but the pace of increase remained solid, figures from the Office for National Statistics showed Tuesday. The house price index climbed 10.2 percent year-on-year following 10.4 percent rise in May. Economists had forecast 10.2 percent gain for June.

Inflation in the U.K. eased to 1.6 percent in July from 1.9 percent in June, the Office for National Statistics reported Tuesday. Economists expected inflation at 1.8 percent. It has been below the 2 percent target since last January. Month-on-month, consumer prices fell 0.3 percent, offsetting the 0.2 percent increase in June. Economists projected a 0.2 percent drop for July.