TSX Rebounds To End Higher -- Canadian Commentary

(RTTNews) - Canadian stocks rebounded to end higher on Tuesday after plummeting to a two-year low yesterday, led by a rally in energy, mining and financial sectors with some bargain-hunting contributing to the gain.

Among Canadian stocks, the healthcare sector continued to tumble with Valeant Pharmaceutical International sharply down after yesterday's massive sell-off. Commodity prices also made some ground with crude oil ending sharply higher, after some weak Chinese economic data sparked a sharp drop in prices yesterday. Nonetheless, gold prices continued to falter.

Markets in Europe ended in the red with pharmaceutical stocks on the decline, although mining stocks regained some ground.

Most Asian stocks dropped on Tuesday after sharp losses on Wall Street overnight as weak Chinese industrial profit data and the IMF's warning of slower economic growth for commodity exporters over the 2015-2017 period spooked investors.

Markets in the United States ended mixed, after fluctuating for most of the trading day. Traders picked up stocks at reduced levels on the heels of the steep losses on Monday that dragged major averages down to their lowest levels in a month. The Dow Jones Industrial Average gained 0.3 percent, the Nasdaq ended down 0.6 percent, and the S&P 500 ended 0.1 percent higher.

In some soft economic news, home prices in major U.S. metropolitan unexpectedly decreased in July, a report from Standard & Poor's showed Tuesday. However, a Conference Board report on Tuesday showed an unexpected improvement in U.S. consumer confidence in September, reflecting a more positive assessment of current conditions.

The benchmark S&P/TSX Composite Index closed Tuesday at 13,041.30, up 36.72 points or 0.28 percent. The index scaled an intraday high of 13,111.38 and a low of 12,964.12.

On Monday, the index closed down 373.99 points or 2.80 percent, at 13,004.58. The index scaled an intraday high of 13,267.91 and a low of 13,004.58.

The Capped Health Care Index dived 4.26 percent, after having slumped 10.80 percent yesterday. Valeant Pharmaceuticals International (VRX.TO) surrendered 4.40 percent after having plunged 16.30 percent yesterday after members in the U.S. House demanded the company be called up for evidence linked to drug price increases.

Concordia Healthcare Corp. (CXR.TO) plummeted 15.37 percent, having slumped 25.43 percent yesterday on pressure over pricing of its drugs from the U.S. Extendicare Inc. (EXE.TO) gained 0.76 percent.

Gold futures ended lower amid speculations over a Fed rate hike this year, even as concerns over the slowdown in the Chinese economy strengthened.

However, the Gold Index gained 0.19 percent, with gold for December delivery dropping $4.90 or 0.4 percent, to settle at $1,126.80 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) shed 0.90 percent, Goldcorp Inc. (G.TO) shed 1.39 percent, and Barrick Gold (ABX.TO) slipped 0.60 percent.

Kinross Gold Corp. (K.TO) jumped 5.12 percent, while Eldorado Gold (ELD.TO) gained 3.33 percent.

The Capped Materials Index inched up 0.27 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) gained 1.22 percent, Agnico Eagle Mines Limited (AEM.TO) slipped 0.18 percent, Agrium Inc. (AGU.TO) gained 1.14 percent and Franco-Nevada Corp. (FNV.TO) fell 0.38 percent.

The Diversified Metals & Mining Index added 1.14 percent, as First Quantum Minerals (FM.TO) added 0.32 percent after having tumbled 14.99 percent yesterday. Teck Resources Limited (TCK-B.TO) jumped 6.05 percent, after having plunged 8.74 percent in yesterday's sell-off.

Lundin Mining Corporation (LUN.TO) dropped 0.81 percent, having dropped 6.30 percent yesterday, while HudBay Minerals Inc. (HBM.TO) shed 0.81 percent after having plunged 12.26 percent on Monday.

The heavyweight Financial Index gained 0.88 percent, as Royal Bank of Canada (RY.TO) gathered 1.34 percent and National Bank of Canada (NA.TO) moved up 0.62 percent.

Toronto-Dominion Bank (TD.TO) gained 0.61 percent, Bank of Nova Scotia (BNS.TO) moved up 1.27 percent, Canadian Imperial Bank Of Commerce added 1.30 percent, and Bank of Montreal (BMO.TO) jumped 1.62 percent.

Crude oil prices ended sharply higher on Tuesday, ahead of the official weekly oil report from the Energy Information Administration tomorrow and the American Petroleum Institute later today, with investors anticipating a decline in domestic production.

The Energy Index gathered 1.54 percent, with U.S. crude oil futures for November delivery jumping $0.80 or 1.8 percent, to settle at $45.23 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) moved up 0.67 percent, Canadian Natural Resources Limited (CNQ.TO) added 3.14 percent, and Canadian Oil Sands (COS.TO) gathered 1.81 percent.

Cenovus Energy (CVE.TO) added 2.97 percent, while Baytex Energy Corp. shed 3.06 percent. Encana Corp. (ECA.TO) gathered 1.32 percent, while Suncor Energy (SU.TO) gained 2.72 percent.

The Capped Information Technology Index shed 0.37 percent, as BlackBerry (BB.TO) fell 3.91 percent, Descartes Systems Group (DSG.TO) dipped 0.42 percent, and Constellation Software (CSU.TO) gained 0.94 percent.

The Capped Telecommunication Index added 0.38 percent, as TELUS Corp. (T.TO) slipped 0.31 percent, Rogers Communication (RCI-B.TO) gained 1.49 percent and BCE Inc. (BCE.TO) added 0.78 percent.

The Capped Industrials Index gained 0.66 percent, as Bombardier (BBD-B.TO) jumped 6.96 percent. China has fined Bombardier and a unit of local train-maker CRRC Corp a small amount each for setting up a joint venture without permission.

Finning International Inc. (FTT.TO) moved up 0.51 percent, while AutoCanada (ACQ.TO) dropped 1.85 percent.

Pacific Exploration & Production (PRE.TO) dropped 3.85 percent. The company has obtained waivers from its lenders from a covenant that requires it to maintain its consolidated net worth above U.S.$1 billion.

On the economic front, Statistics Canada reported Tuesday that the Canadian Industrial Price Index fell by 0.3 percent in August. Economists had expected a decrease of 0.5 percent.

From across the border, home prices in major U.S. metropolitan unexpectedly decreased in July, a report from Standard & Poor's showed Tuesday. The S&P/Case-Shiller 20-City Composite Home Price Index edged down by a seasonally adjusted 0.2 percent in July, matching the revised drop seen in June. Economists expected the index to edge up by 0.1 percent during the month.

Reflecting a more positive assessment of current conditions, a Conference Board report on Tuesday showed an unexpected improvement in U.S. consumer confidence in September. The Board's consumer confidence index climbed to 103.0 in September from 101.3 in August. Economists expected the index to pull back to 96.0.

Elsewhere, eurozone economic confidence improved notably to a 4-year high in September notwithstanding concerns about China woes and slow global growth, survey data from the European Commission showed Tuesday. The economic sentiment index rose to 105.6 in September, the highest since June 2011, from a revised 104.1 in August. It was forecast to drop marginally to 104.1 from August's originally estimated reading of 104.2.

Germany's consumer prices remained unchanged in September, defying expectations for a modest increase, while the EU measure of inflation tumbled more-than-expected, preliminary data from the statistical office Destatis showed Tuesday.

The consumer price index held steady annually in September, following a 0.2 percent increase in both July and August. Economists had expected a 0.1 percent gain.

The harmonized index of consumer prices, or HICP, meant for EU purposes fell 0.2 percent year-on-year, which was also bigger than the 0.1 percent decline economists had expected. The HICP decreased 0.3 percent from the previous month, when it was unchanged. Economists were looking for a 0.1 percent fall.

Germany's import prices declined at a slightly faster-than-expected pace in August, figures from Destatis showed Tuesday. The import price index fell 3.1 percent year-over-year in August, faster than the 1.7 percent decrease in the previous month. Economists had expected a 3.0 percent drop for the month.

Meanwhile, Germany's export prices declined at a slower pace of 0.8 percent yearly in August, following a 1.2 percent climb in the preceding month. The index has been rising since September last year.

U.K. high street sales and orders logged stronger-than-expected growth in September, the latest Distributive Trades Survey from the Confederation of British Industry showed Tuesday. The retail sales balance rose to +49 percent from +24 percent in August. It was above the expected level of +28 percent.

U.K. mortgage approvals increased to a 19-month high in August, the Bank of England reported Tuesday. The number of mortgage approvals increased to 71,030 from 69,010 in July. This was the highest since January 2014, when it totaled 75,611. It was also above the expected level of 69,800.