TSX Touches 5-year High Amid Stimulus Talk -- Canadian Commentary

(RTTNews) - Canadian stocks started off on a firm note Wednesday, riding on U.S. private sector employment and hopes of Chinese stimulus.

A possible rate cut announcement from the European Central Bank also had investors in a decent mood.

The benchmark S&P/TSX Composite Index is up 49.59 points or 0.35 percent at 14,429.89, a new five-year high.

On Tuesday, the benchmark ended at up 45.24 points or 0.32 percent at 14,380.55.

Energy stocks are mixed, with traders digesting a report showing an unexpected drop in U.S. crude stockpiles. Gold stocks are in demand, tracking the yellow metal's rebound after recent weakness.

In corporate news, BlackBerry Ltd. (BB.TO) announced late Tuesday that it is ending its licensing agreement with T-Mobile Inc. (TMUS: Quote) when it expires on April 25, 2014. The stock is up nearly 1.5 percent.

Canadian Natural Resources Ltd.(CNQ.TO) shares are down marginally after opening slightly higher. The company has announced that it has completed the acquisition of Devon Energy Corp.'s (DVN) Canadian conventional assets, excluding Horn River and the heavy oil properties, for C$3.125 billion.

ProMetic Life Sciences Inc. (PLI.TO) is up over 4 percent after the company announced that it had a successful Pre-Investigational New Drug or Pre-IND meeting with the US Food and Drug Administration for a plasma-derived biopharmaceutical currently under development under the NantPro, LLC joint venture.

Agrium Inc. (AGU.TO) stock is down more than 3.5 percent as the company expects its first-quarter earnings per share to be just above breakeven as the slow start to the spring season might impact the timing of Wholesale, and to a lesser extent Retail, earnings.

First Capital Realty Inc. (FCR.TO) has announced that its Executive Vice President and Chief Financial Officer, Karen Weaver, has decided to leave the company to pursue other opportunities. The stock is almost unchanged from its previous closing price.

In the energy sector, Encana Corporation (ECATO), Suncor Energy Inc. (SUTO), Talisman Energy Inc. (TLMTO) and Husky Energy Inc. (HSETO) are up 0.3 to 1 percent.

Crescent Point Energy Corp. (CPG.TO), Cenovus Energy Inc. (CVE.TO), Canadian Oil Sands Limited (COS.TO) ARC Resources Ltd. (ARXTO) are down with modest losses, while Imperial Oil Limited (IMO) is down 1.5 percent

Among gold stocks, Osisko Mining Corporation (OSK.TO) is up 7.3 percent after the company announced it has entered into an agreement with Yamana Gold Inc. (YRI.TO). As per the agreement, Yamana will acquire a 50 percent interest in Osisko's mining and exploration assets. Shares of Yamana Gold Inc. (YRI.TO) are up 1.7 percent.

Goldcorp Inc. (G.TO) is up more than 3 percent. The company announced that its Los Filos mine in Guerrero State, Mexico has suspended operations following unsuccessful efforts with the Carrizalillo Ejido to reach a negotiated settlement to renew the occupancy agreement that expired on March 31, 2014.

B2Gold Corp (BTO.TO), Barrick Gold Corporation (ABX.TO), Eldorado Gold Corporation (ELD.TO) and Kinross Gold Corporation (K.TO) are up 3 to 4.5 percent, while Detour Gold Corporation (DGC.TO)and Torex Gold Resources Inc. (TXG.TO) are up 7 percent and 6.5 percent, respectively.

Big six banks are down marginally.

Among industrial stocks, Ballard Power Systems Inc. (BLD.TO) is up 10.5 percent and Canadian Pacific Railway Limited (CPTO) is up 1.8 percent.

Airliner Air Canada (AC.B.TO) is up 1.6 percent. Healthcare stock Valeant Pharmaceuticals International, Inc. (VRX.TO) is up nearly 1 percent. Catamaran Corporation (CCT.TO) is down marginally.

Crude oil prices are lower despite a report from U.S. Energy Information Administration showing crude oil inventories to have unxexpectedly declined by 2.4 million barrels in the week ended March 28, compared to expectations of an increase of 1.1 million barrels.

Analysts had expected U.S. Gasoline Inventories to fall -1.086M in the last quarter.

Crude futures for May delivery are down $0.59 or 0.59 percent at $99.15 a barrel, after declining to $98.90 a barrel.

Natural Gas is up $0.066 or 1.54 percent at $4.342 per million btu, coming off the day's low of $4.222.

Gold futures for June are up $12.40 or 0.97 percent at $1,292.40 an ounce, coming off a seven-week low of $1,278.10 on Tuesday.

Silver for May is up $0.342 or 1.74 percent at $20.030 an ounce, off the day's low of $19.733 an ounce.

Meanwhile, copper futures for May delivery are up $0.013 ot 0.41 percent at $3.047 per pound, after rising to $3.074 following an earthquake in Chile raising concerns about supply.

Meanwhile, copper futures for May delivery are up $0.034 or 1.13 percent at $3.069 per pound, following an earthquake in Chile raising concerns about supply.

In the currency market, the Canadian loonie is trading at 1.1033 against the greenback, down 0.07 percent from previous close, after edging higher earlier in the day.

In economic news from the U.S., employment in the U.S. private sector showed a notable increase in the month of March, according to a report released by payroll processor ADP on Wednesday, with the report also showing a substantial upward revision to the job growth in the previous month.

ADP said private sector employment increased by 191,000 jobs in March following an upwardly revised increase of 178,000 jobs in February.

A report from the U.S. Commerce Department said factory orders rose by a more than expected 1.6 percent in February following a revised 1.0 percent decrease in January. Economists had expected orders to rise by about 1.2 percent compared to the 0.7 percent drop originally reported for the previous month.

Asian markets mostly ended higher, tracking Tuesday's gains on Wall Street. Major European markets are up as well, although buying interest is somewhat subdued after recent solid upmove and on caution ahead of the outcome of Thursday's ECB meeting.