TSX Ends A Tad Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended a tad higher for a fifth straight session on Thursday, tracking rising global equity markets after the European Central Bank lowered its interest rates and cut rates on bank deposits parked overnight with the central bank to negative. The ECB move comes in an effort to tackle the low inflation threatening the fragile economic recovery of the euro area.

Nonetheless, investors were largely indifferent to the additional stimulus measures from the European Central Bank, while awaiting the crucial U.S. monthly jobs report due tomorrow.

A disappointing U.S. jobless claims report and worries over the unrest in Ukraine where heavy fighting between pro-Russian separatists and Ukrainian Forces were reported, and probability of more sanctions on Russia appear to be weighing on sentiment.

The S&P/TSX Composite Index closed Thursday at 14,800.18, up 3.39 points or 0.02 percent. The index scaled an intraday high of 14,821.73 and a low of 14,736.39.

The Financial Index slipped 0.17 percent with all major banks trending down.

The Canadian Imperial Bank of Commerce (CM.TO) dropped 0.24 percent, Bank of Montreal (BMO.TO) surrendered 0.26 percent, National Bank of Canada (NA.TO) fell 0.37 percent, Toronto-Dominion Bank (TD.TO) dropped 0.31 percent, and Bank of Nova Scotia (BNS.TO) shed 0.45 percent.

Royal Bank of Canada (RY.TO) surrendered 0.44 percent, while Manulife Financial Corp. (MFC.TO) gained 0.34 percent.

The Capped Healthcare Index moved up 0.36 percent with Catamaran Corp. (CCT.TO) up 1.01 percent and Extendicare Inc. (EXE.TO) gaining 0.54 percent. Valeant Pharmaceuticals International Inc. (VRX.TO) dropped 0.55 percent.

Crude oil ended lower after moves by the European Central Bank to cut rates to tackle the low inflation threatening the economic recovery of the euro area.

The Energy Index slipped 0.09 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, shedding $0.16 or 0.2 percent to close at $102.48 a barrel Thursday on the Nymex.

Among energy stocks, Encana Corp. (ECA.TO) shed 0.31 percent, while Husky Energy Inc. (HSE.TO) slipped 1.37 percent.

Canadian Natural Resources Ltd. (CNQ.TO) slipped 0.07 percent, while Talisman Energy Inc. (TLM.TO) dropped 0.45 percent. Pacific Rubiales Energy Corp. (PRE.TO) moved up 1.06 percent, Cenovus Energy Inc. (CVE.TO) dipped 0.43 percent, and Suncor Energy Inc. (SU.TO) slipped 0.45 percent.

Gold futures ended ended higher after the European Central Bank's monetary moves to contain low inflation and as well on some disappointing initial jobless claims data from the U.S.

The Global Gold Index added 1.51 percent, with gold futures for August delivery gaining $9.00 or 0.7 percent to close at $1,253.30 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 0.75 percent, Osisko Mining Corp. (OSK.TO) gained 1.24 percent, Barrick Gold Corp. (ABX.TO) moved up 0.92 percent, Kinross Gold Corp. (K.TO) advanced 3.14 percent, and Agnico Eagle Mines Limited (AEM.TO) up 0.99 percent.

The Capped Materials Index gained 0.81 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.39 percent.

The Diversified Metals & Mining Index dropped 0.24 percent, with Lundin Mining Corp. (LUN.TO) down 0.86 percent, First Quantum Minerals Ltd. (FM.TO) down 1.04 percent, and Teck Resources Limited (TCK.B.TO) up 1.01 percent.

The Information Technology Index gained 0.51 percent, with BlackBerry Limited (BB.TO) edging up 0.12 percent, Constellation Software Inc (CSU.TO) up 0.40 percent, and Celestica Inc. (CLS.TO) up 0.86 percent. Avigilon Corp. (AVO.TO) jumped 3.92 percent.

The Capped Industrials Index added 0.68 percent, with Bombardier Inc. (BBD.B.TO) up 0.81 percent and Air Canada (AC.B) up 4.42 percent.

AutoCanada Inc. (ACQ.TO) jumped 6.85 percent after an upward revision to its acquisition guidance to complete an additional 8 to 10 dealership acquisitions over the coming 12 months. The company also said it has extended the employment contract its Chairman and Chief Executive officer Pat Priestner until 31 May 2019.

Just Energy Group Inc. (JE.TO) jumped 6.56 percent after announcing the sale of the shares of National Energy Corp., its water heater and HVAC home services business, to Reliance Comfort Limited Partnership, for $505 million subject to certain potential adjustments at closing including working capital balances.

Goldcorp Inc. (G.TO) gained 1.35 percent, after pricing an offering of senior unsecured notes aggregating $1.10 billion.

On the economic front, building permits in Canada were up 1.1 percent in April, after declining in the previous two months.

In economic news from the U.S., data from the Labor Department showed initial jobless claims to have risen to 312,000 in the week ended May 31, an increase of 8,000 from the previous week's revised level of 304,000. Economists expected claims to climb to 310,000 from the 300,000 originally reported for the previous week.

Nonetheless, the less volatile four-week moving average dipped to 310,250, a decrease of 2,250 from the previous week's revised average of 312,500. This indicated the four-week moving average at its lowest level since hitting 307,500 in the week ended June 2, 2007.

In a significant move, the European Central Bank on Thursday cut its key interest rate to a record low of 0.15 percent and slashed its deposit rate to below zero, aiming to boost growth. Economists had expected a deeper cut in the refi rate to 0.10 percent.

The ECB also said more stimulus is on the way in the form of an undetermined amount of asset-backed security purchases.

ECB president Mario Draghi said the bank will offer long-term loans to banks at cheap rates for the next few years. Draghi also stated that more unconventional measures are likely it inflation stays too low.

Earlier, the Bank of England left its lending rate unchanged at a historical low of 0.5 percent.

Meanwhile, the U.S. Fed's Beige Book indicated the economy to have been growing at decent pace since the warmer weather, with all twelve of the Federal Reserve districts reporting an increase in activity in the past few months.