TSX Ends Higher On Upbeat Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Tuesday, driven largely by energy and health care sectors while tracking rising U.S. and European equity markets. Investors continued to weigh some mixed global economic data, but were encouraged by some upbeat trade data from the U.S. While Canada's trade deficit widened marginally, data from south of the border revealed that U.S. trade deficit narrowed much more than anticipated in November.

A Commerce Department report on Tuesday showed U.S. trade deficit to have narrowed more than anticipated in November, with the value of exports rising and imports falling. The deficit was the smallest recorded since the $33.9 billion deficit reported in October 2009. U.S. trade deficit narrowed to $34.3 billion in November from a revised $39.3 billion in October. Economists expected the trade deficit at $39.9 billion from the $40.6 billion originally reported for the previous month. The deficit was the smallest recorded since the $33.9 billion deficit reported in October 2009.

Elsewhere, Asian stocks settled mixed in cautious trading, with concerns about Chinese growth and mixed data out of the U.S. weighing on markets. Nonetheless, European markets ended in positive territory after German unemployment declined.

U.S. stocks also ended higher after Janet Yellen became the first woman ever to head the Federal Reserve in its 100-year history. The U.S. Senate voted to confirm her as the next head of the central bank.

The S&P/TSX Composite Index closed Monday at 13,596.93, up 101.39 points or 0.75 percent. The index scaled an intraday high of 13,617.09 and a low of 13,495.05. The Index had shed about 125 points or nearly1 percent in the past three sessions.

Crude oil snapped a five-day loss to end higher after freezing cold weather in large parts of the U.S. pushed heating fuel prices up. Nonetheless, the gains were capped as investors continued to worry over the increased oil supply scenario with Libya's oil production and export expected to go normal.

The Energy Index gained 1.13 percent, with U.S. crude oil futures for February delivery, the most actively traded contract, adding $0.24 or 0.3 percent to close at $93.67 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 0.51 percent, while Suncor Energy Inc. (SU.TO) gained 1.61 percent. Talisman Energy Inc. (TLM.TO) moved up 2.38 percent, while Encana Corp. (ECA.TO) edged up 0.64 percent.

The Health Care Index jumped 5.38 percent with drug maker Valeant Pharmaceuticals International, Inc. (VRX.TO) surging 12.53 percent after its CEO Michael Pearson in a conference call with analysts said his company is seeking to be among the top five drug makers by market capitalization in the world end 2016. Valeant has forecast cash earnings and revenue to grow 40 percent in 2014.

Biological products and technologies company Microbix Biosystems (MBX.TO) surged 14.00 percent after indicating it has commenced a patent litigation against Swiss drug-maker Novartis AG's (NVS) Novartis Vaccines and Diagnostics, alleging infringement of its proprietary VIRUSMAX technology.

The Information Technology Index gained 1.49 percent, with smartphone maker BlackBerry Limited (BB.TO) surging 7.40 percent.

The Diversified Metals & Mining Index slipped 0.04 percent, with Teck Resources Limited (TCK.B.TO) down 0.71 percent and First Quantum Minerals Ltd. (FM.TO) down 2.88 percent.

The Capped Materials Index gained 0.37 percent, with fertilizer giant Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.74 percent.

Gold futures ended lower for a second straight session Tuesday, after some upbeat trade data from the U.S., with investors awaiting the outcome of the Fed policy meet due Wednesday and the jobs data later in the week.

The Global Gold Index gained 0.71 percent, with gold futures for February delivery, the most actively traded contract, slipping $8.40 or 0.7 percent to close at $1,229.60 an ounce Tuesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) edged up 0.20 percent, while Barrick Gold Corp. (ABX.TO) added 0.46 percent. Yamana Gold Inc. (YRI.TO) moved up 2.00 percent.

The Financial Index dropped 0.0.08 percent with Bank of Montreal (BMO.TO) up 0.14 percent, Royal Bank of Canada (RY.TO) up 0.38 percent, the Bank of Nova Scotia (BNS.TO) slipped 0.40 percent, and Toronto-Dominion Bank (TD.TO) lost 0.08 percent.

The Capped Industrials Index moved up 0.50 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) slipping 0.44 percent. Nonetheless, its transportation unit Bombardier Transportation received orders valued at $639 million for 365 additional rail cars from the San Francisco Bay Area Rapid Transit District. Bombardier now has firm orders for 775 cars with a total value of about US$1.5 billion.

In economic news, Statistics Canada said the nation's trade deficit widened to $940 million in November from $908 million in October as merchandise imports edged up 0.1 percent while exports were unchanged in November.

In economic news from the U.S, a Commerce Department report showed the trade deficit narrowed to $34.3 billion in November from a revised $39.3 billion in October. Economists expected the trade deficit at $39.9 billion from the $40.6 billion originally reported for the previous month.

From the eurozone, Germany's retail sales expanded by seasonally adjusted 1.5 percent month-on-month in November, after falling for two straight months, provisional data from Destatis revealed. Real retail sales turnover dropped 0.8 percent in October and 0.1 percent in September.

Unemployment in Germany declined in December from a month earlier, the latest data from the Federal Labor Agency revealed. The number of unemployed fell by 15,000 in December while expectations were for no change in the figure. In November, unemployment rose by 9,000.

Meanwhile, eurozone inflation slowed to 0.8 percent in December from 0.9 percent in November, preliminary data from Eurostat showed. The rate was forecast to remain unchanged at 0.9 percent. The European Central Bank is viewing inflation rates of below, but close to, 2 percent over the medium term.

Industrial producer prices in the euro area decreased for the fourth consecutive month in November, but at a slower pace than in October, data from Eurostat showed. The producer price index for the domestic market dropped 1.2 percent annually in November, which was slightly slower than the October's 1.3 percent fall. Economists had forecast a 1.3 percent decrease for November.