TSX Ends Higher As Commodity Prices Rebound -- Canadian Commentary

(RTTNews) - Canadian stocks rebounded to end higher Thursday, led by gains in energy and gold stocks as commodity prices bounced after yesterday's sharp plunge. However, the gains were somewhat pegged back on concerns over an immediate rate hike by the U.S. Federal Reserve.

Markets in Europe ended firmly in the red, on profit taking and some weak economic data from both Japan and China having a negative impact on investor sentiment.

The Bank of England kept its record low interest rate unchanged in a split vote and judged it premature to conclude that overseas events, especially those in China, had a huge adverse impact on the British economy.

Most Asian stocks ended in negative territory, as weak Japanese and Chinese data as well as renewed talk of an interest rate hike in the U.S. kept investors on edge ahead of next week's crucial FOMC meeting.

Markets in the United States ended in the green, with all major averages ending in positive territory although well off their best levels of the day. The Dow gained 0.5 percent, the Nasdaq advanced 0.8 percent, and the S&P 500 climbed 0.5 percent.

U.S. economic data has largely come in weaker than anticipated, with the exception of weekly jobless claims data which was in line with expectations.

A Labor Department report on Thursday showed jobless claims to have pulled back in line with estimates in the week ended September 6, after reporting a bigger than expected increase in first-time claims for U.S. unemployment benefits in the previous week.

A separate Labor Department report showed U.S. import prices fell more than expected in August, with fuel prices showing another substantial decrease.

Wholesale inventories in the U.S. unexpectedly saw a modest decrease in July, a report from the Commerce Department showed Thursday.

China's inflation accelerated in August on soaring food prices, while producer prices fell at the fastest pace since late 2009 largely due to easing commodity prices.

The benchmark S&P/TSX Composite Index closed Thursday at 13,569.89, up 38.04 points or 0.28 percent. The index scaled an intraday high of 13,643.54 and a low of 13,504.08.

On Wednesday, the index closed down 98.82 points or 0.72 percent, at 13,531.85. The index scaled an intraday high of 13,766.65 and a low of 13,516.99.

The Diversified Metals & Mining Index gained 1.14 percent as First Quantum Minerals (FM.TO) jumped 6.67 percent and Lundin Mining Corporation (LUN.TO) moved up 0.46 percent.

Teck Resources Limited (TCK-B.TO) fell 2.84 percent, while HudBay Minerals Inc. (HBM.TO) moved up 5.47 percent, while Sherritt International Corp. (S.TO) dropped 0.90 percent.

The heavyweight Financial Index added 0.16 percent, as Bank of Montreal (BMO.TO) added 0.39 percent, National Bank of Canada (NA.TO) gathered 1.43 percent, and Royal Bank of Canada (RY.TO) inched up 0.08 percent.

Toronto-Dominion Bank (TD.TO) added 0.31 percent, Bank of Nova Scotia (BNS.TO) fell 0.39 percent, and Canadian Imperial Bank of Commerce (CM.TO) shed 0.52 percent.

Sun Life Financial (SLF.TO) jumped 3.12 percent, after agreeing to buy the employee benefits business of Assurant Inc. for $940 million.

Manulife Financial (MFC.TO) gained 0.10 percent. The company has entered into a 15-year distribution partnership with Standard Chartered.

Crude oil surged after an official weekly oil report from the Energy Information Administration showed crude stockpiles in the U.S. to have increased more than expected last week.

A U.S. Energy Information Administration report showed crude stockpiles in the U.S. to have increased 2.6 million barrels in the week ended August 28, while analysts anticipated an increase of 0.3 million barrels. Total U.S. crude stockpiles aggregated 458.0 million barrels end last week

The Energy Index gathered 1.24 percent, with U.S. crude oil futures for October delivery, the most actively traded contract, surging $1.77 or 4 percent, to settle at $45.92 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) gained 1.71 percent, Canadian Natural Resources Limited (CNQ.TO) moved up 1.40 percent, and Cenovus Energy (CVE.TO) added 1.62 percent.

Encana Corp. (ECA.TO) moved up 3.46 percent, after providing its mid-third quarter update..

Suncor Energy Inc. (SU.TO) gathered 0.75 percent, while Canadian Oil Sands (COS.TO) moved up 2.69 percent.

Gold futures ended higher as the dollar weakened and with continued investor focus on the Federal Reserve policy meet next week as the uncertainty over an interest rate hike persisted.

The Gold Index dipped 0.08 percent, with gold for December delivery gaining $7.30 or 0.7 percent, to settle at $1,109.30 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) shed 3.37 percent, IAMGOLD Corp. (IMG.TO) plunged 6.34 percent, and Barrick Gold (ABX.TO) dipped 0.84 percent.

Eldorado Gold (ELD.TO) fell 1.66 percent, Royal Gold (RGL.TO) surrendered 1.08 percent, and B2Gold Corp. (BTO.TO) shed 1.23 percent.

Kinross Gold Corp. (K.TO) added 0.49 percent.

Centamin (CEE.TO) gained 1.67 percent, after providing an update to its Mineral Resource and Mineral Reserve estimates for the Sukari Gold Mine.

The Capped Materials Index fell 0.31 percent, as Agnico Eagle Mines Limited (AEM.TO) gained 1.02 percent, Agrium Inc. (AGU.TO) gained 0.73 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) dropped 0.89 percent.

The Capped Health Care Index added 0.22 percent, as Valeant Pharmaceuticals International (VRX.TO) inched up 0.18 percent, Extendicare Inc. (EXE.TO) gained 0.37 percent, and Concordia Healthcare Corp. (CXR.TO) 0.32 percent.

The Capped Information Technology Index moved up 0.14 percent, as BlackBerry Limited (BB.TO) gained 1.88 percent and Descartes Systems Group (DSG.TO) fell 1.77 percent. Descartes Systems reported a second quarter profit of $0.07 per share, compared to $0.05 per share in the prior year.

The Capped Telecommunication Index dropped 0.44 percent, as Rogers Communication (RCI-B.TO) fell 0.77 percent, BCE Inc. (BCE.TO) dipped 0.44 percent, and TELUS Corp. (T.TO) surrendered 0.19 percent.

The Capped Industrials Index added 1.72 percent, as Bombardier (BBD-B.TO) surged 28.77 percent. The company reportedly rebuffed a Chinese offer to buy up to 100% of its rail business yesterday.

Finning International Inc. (FTT.TO) dropped 0.18 percent, while Air Canada added 1.97 percent.

Dollarama (DOL.TO) surged 6.67 percent, after reporting a second quarter profit of $0.74 per share. The company reported earnings of $0.51 per share in the prior year period.

Ritchie Bros. Auctioneers (RBA.TO) dropped 1.06 percent after it sold over $42 million in equipment and trucks at its unreserved public auction in Dubai.

On the economic front, Statistics Canada reported Thursday morning that the Canadian new housing price index rose by 0.1 percent in July. Economists were expecting an increase of 0.2 percent.

Statistics Canada also reported that Canadian capacity utilization fell to 81.3 percent in the second quarter, its lowest level in 2 years. Expectations had been for a decrease to 81.7 percent. The first quarter result was also revised to 82.6 percent.

On the economic front, a Labor Department report on Thursday showed jobless claims to have pulled back in the week ended September 6, with initial jobless claims dropping to 275,000, a decrease of 6,000 from the previous week's revised level of 281,000. Economists expected jobless claims to dip to 275,000 from the 282,000 originally reported for the prior week.

Import prices in the U.S. tumbled by 1.8 percent in August following an unrevised 0.9 percent decrease in July. Economists expected import prices to drop by 1.6 percent. The report also showed a steep drop in export prices, which slumped by 1.4 percent in August after falling by a revised 0.4 percent in July. Export prices had been expected to edge down by about 0.4 percent compared to the 0.2 percent drop originally reported for the previous month.

Wholesale inventories in the U.S. edged down by 0.1 percent in July following a downward revised 0.7 percent increase in June. Economists expected inventories to rise by 0.3 percent compared to the 0.9 percent increase originally reported for the previous month.

China's inflation rose to a 12-month high of 2 percent in August from 1.6 percent in July, the National Bureau of Statistics reported Thursday. It was expected to rise to 1.8 percent. Producer prices declined at a faster pace of 5.9 percent annually, following a 5.4 percent drop in July. This was the weakest rate since late 2009 and marked 42 consecutive months of declines.

Core machine orders in Japan slid 3.6 percent on month in July, the Cabinet Office said on Thursday - worth 805.6 billion yen. The headline figure was well shy of forecasts for an increase of 3.3 percent following the 7.9 percent contraction in June.

French industrial production declined unexpectedly in July, data from the statistical office Insee revealed Thursday. Industrial production slid 0.8 percent in July from June, when it remained flat. It was expected to grow 0.2 percent.

France's non-farm payroll employment increased in the three months ended June after staying flat in the previous quarter, figures from the statistical office INSEE showed Thursday. Payroll employment in the principally market sectors, which include the manufacturing, construction and service sectors, rose 0.2 percent quarter-on-quarter in the second quarter, after showing no variations in the preceding quarter.

U.K. house prices logged its biggest monthly increase in 15 months, data from Lloyds Banking Group's Halifax division revealed Thursday. House prices advanced 2.7 percent in August from July, which was the fastest increase since May 2014. Economists had forecast prices to climb 0.5 percent after falling 0.4 percent in July.

House prices in the United Kingdom spiked in August, the latest survey from the Royal Institution of Chartered Surveyors showed on Thursday as its house price balance surged to 53 percent. That topped forecasts for an increase of 46 percent and was up sharply from 44 percent in July.