TSX Settles Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end higher on Wednesday, tracking rising global equity markets as reports hinted that Greece was on the verge of a deal with its international creditors. The uptick was led by mining and industrial stocks, although somewhat pulled down by falling energy stocks as crude oil prices declined.

European markets ended in positive territory with some strength after Greek Prime Minister Alexis Tspiras in a statement said his country was close to an agreement with international creditors. He also added that the agreement would be beneficial to Greece with no impingement on pensions, salaries, banks or deposits in the proposed deal.

Nevertheless, EU Vice President Valdis Dombrovskis presented a cautious note, warning that Greece needs much more to before any agreement is reached. Greece is expected to make a 300 million euros payment to the International Monetary Fund next week.

Markets in the United States also ended in positive territory, with substantial gains after the sell-off seen in the previous session. The tech-heavy Nasdaq closed at a record high, having more than offset yesterday's loss. All major averages closed firmly in the positive, although the Nasdaq outperformed its counterparts.

Analysts attribute the strength on Wall Street partly to bargain hunting on the heels of the sharp drop in the previous session, amid concerns over the outlook for interest rates.

Meanwhile, the Canadian central bank left its key interest rate unchanged, while indicating the economy needed more time to weigh the impact of the oil price collapse and a weaker-than-expected U.S. economy.

The benchmark S&P/TSX Composite Index closed Wednesday at 15,110.47, up 59.66 points or 0.40 percent. The index scaled an intraday high of 15,144.40 and a low of 15,016.42.

On Tuesday, the index closed down 136.59 points or 0.90 percent, at 15,050.81. The index scaled an intraday high of 15,188.65 and a low of 14,974.30.

Gold futures ended lower as the dollar continued to trend higher amid expectations that the Federal Reserve will raise interest rates in either July or September.

The Gold Index gained 0.70 percent, although gold for June delivery dropped $1.30 or 0.1 percent, to settle at $1,185.60 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, Goldcorp Inc. (G.TO) gained 0.83 percent, Barrick Gold Corp. (ABX.TO) moved up 0.14 percent. and Eldorado Gold Corp. (ELD.TO) gained 0.51 percent.

The Capped Materials Index added 0.21 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.42 percent and Agrium Inc. (AGU.TO) slipping 1.03 percent.

Agnico Eagle Mines Limited (AEM.TO) added 1.22 percent, while Franco-Nevada Corp. (FNV.TO) gathered 0.50 percent.

Crude oil ended lower ahead of the official weekly crude oil inventory report from the Energy Information Administration due tomorrow, even as the dollar continued to strengthen against a select band of currencies.

The Energy Index fell 0.73 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, shedding $0.52 or 0.9 percent, to settle at $57.51 a barrel on the New York Mercantile Exchange Wednesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.30 percent, while Crescent Point Energy Corp. (CPG.TO) plunged 5.47 percent. Cenovus Energy Inc. (CVE.TO) dropped 1.06 percent, Encana Corp. (ECA.TO) edged down 0.31 percent, and Canadian Natural Resources Limited (CNQ.TO) fell 0.03 percent.

Canadian Oil Sands Limited (COS.TO) dipped 2.96 percent, while Legacy Oil + Gas (LEG.TO) plummeted 8.56 percent. Pacific Rubiales Energy Corp. (PRE.TO) slipped 0.66 percent.

The Diversified Metals & Mining Index gained 1.02 percent, as First Quantum Minerals Ltd. (FM.TO) moved 1.05 percent, Teck Resources Limited (TCK.B.TO) gathered 1.56 percent, Lundin Mining Corp. (LUN.TO) added 1.58 percent, and Sherritt International Corp. (S.TO) gathered 1.68 percent.

The heavyweight Financial Index added 0.40 percent, as Bank of Nova Scotia (BNS.TO) moved up 0.37 percent, Royal Bank of Canada (RY.TO) added 0.46 percent. Canadian Imperial Bank of Commerce (CM.TO) gained 0.59 percent, while Toronto-Dominion Bank (TD.TO) added 0.52 percent.

National Bank of Canada (NA.TO) inched up 0.04 percent, after reporting second-quarter net income to the shareholders of C$388 million compared to C$345 million a year ago. Earnings for the quarter were C$1.13 per share, compared to C$1.01 per share a year ago. Excluding items, second-quarter earnings per share was C$1.15.

Bank of Montreal (BMO.TO) gained 0.32 percent after BMO Financial Group reported a second-quarter profit of C$999 million, down 7 percent from the prior year's C$1.076 billion, due to a C$106 million charge in the latest-quarter. Quarterly earnings per share declined to C$1.49 from C$1.60 last year.

The Capped Health Care Index moved up 0.37 percent as Valeant Pharmaceuticals International Inc. (VRX.TO) gained 1.89 percent, Concordia Healthcare Corp. (CXR.TO) added 0.82 percent, and Catamaran Corp. (CCT.TO) gathered 0.56 percent.

The Capped Industrials Index gathered 1.38 percent, as Air Canada (AC.TO) surged 8.03 percent, Bombardier Inc. (BBD-A.TO) gained 2.44 percent, and Finning International Inc. (FTT.TO) added 1.69 percent. Canadian Pacific Railway Limited (CP.TO) moved up 0.81 percent, and Canadian National Railway (CNR.TO) added 1.43 percent.

CAE Inc. (CAE.TO) shed 0.73 percent.

The Information Technology Index shed 0.44 percent, as BlackBerry Inc. (BB.TO) slipped 1.41 percent, Constellation Software Inc. (CSU.TO) fell 1.01 percent and Sierra Wireless, Inc. (SW.TO) dropped 3.71 percent. Descartes Systems Group Inc. (DSG.TO) gathered 2.41 percent.

The Capped Telecommunication Index moved up 0.18 percent, as Rogers Communications Inc. (RCI.B.TO) fell 0.62 percent, TELUS Corp. (T.TO) added 0.26 percent, and BCE Inc. (BCE.TO) gained 0.78 percent.

In economic news, a measure of future economic activity in Germany, the Conference Board's Leading Economic Index rose 0.5 percent to 108.5 in March. In February, the index had risen 0.7 percent. It was the fifth consecutive month of rise in March, with widespread strength among components, signaling the growth momentum could improve in coming months, a survey from the Conference Board showed Wednesday.

Meanwhile, the European Central Bank maintained the level of Emergency Liquidity Assistance provided for Greek banks, a report said citing sources on Wednesday. Greece has not requested to raise the ceiling as it has an unused liquidity buffer of EUR 3 billion under the ELA program. The Greece central bank has provided around EUR 80.2 billion to lenders.