TSX Ends Higher As Geopolitical Tensions Ease -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session Monday, tracking rising global equity markets amid easing concerns over the Ukraine Russia conflict, with reports indicating a possible meeting between the two countries for an end to hostilities.

In Iraq, the U.S. air force planes continued to target areas surrounding the strategic Mosul Dam in an effort to dislodge Islamic State militants and help Kurdish forces retake the region.

Expectations that global central banks will keep easy monetary policy in force for an extended period also aided sentiment. With the drop in commodity prices, both energy and gold stocks continued to trend lower. While the drop in crude oil prices amid demand growth concerns put the energy stocks under pressure, gold stocks also trended lower due to lower bullion prices.

Nonetheless, financial, industrial and technology stocks led the main index higher, with investors looking ahead to the minutes of the U.S. Federal Reserve's July policy meet due Wednesday.

The S&P/TSX Composite Index closed Monday at 15,338.47, up 34.23 points or 0.22 percent. The index scaled a intraday high of 15,368.98 and a low of 15,304.24.

On Thursday, Canadian stocks ended higher on some upbeat revision to last month's jobs report, with July employment rising significantly in Canada due to a large increase in part-time work. The unemployment rate declined 0.1 percentage points, after a to the initial reading that showed Canada's economy created only 200 jobs in July.

Crude oil ended lower Monday, ahead of the weekly official oil report from the Energy Information Administration, weighed down on reports that global demand for oil is likely to decline.

The Energy Index dropped 0.42 percent, with U.S. crude oil futures for September delivery dropping $0.94 or 1.0 percent to close at $96.41 a barrel Monday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dropped 0.87 percent, Enbridge Inc. (ENB.TO) dipped 0.02 percent, Suncor Energy Inc. (SU.TO) slipped 0.63 percent, Talisman Energy (TLM.TO) dropped 0.62 percent, Encana Corp. (ECA.TO) shed 1.32 percent, and Canadian Natural Resources Limited (CNQ.TO) was down 1.06 percent.

The Healthcare Index shed 0.38 percent with Catamaran Corp. (CCT.TO) up 1.14 percent, and Extendicare Inc. (EXE.TO) down 0.35 a share. Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 2.18 percent, with the company extending the expiration of its exchange offer to acquire all of the outstanding shares of Allergan, Inc. (AGN) by December 31, 2014. The exchange offer was previously scheduled to expire on August 15.

The Financial Index added 0.35 percent with Toronto-Dominion Bank adding 0.55 percent and Bank of Nova Scotia (BNS.TO) up 0.21 percent.

Among other major banks, Canadian Imperial Bank Of Commerce (CM.TO) added 0.43 percent, Royal Bank of Canada (RY.TO) jumped 0.70 percent, and Bank of Montreal (BMO.TO) moved up 0.19 percent.

Gold futures ended lower with investors tracking rebounding European equity markets, turning to the riskier equity assets, supported by a strong dollar after some upbeat homebuilder confidence data from the U.S.

Global Gold Index moved up 0.20 percent, although gold futures for December delivery dropped $6.90 or 0.5 percent to close at $1,299.30 an ounce on the Nymex Monday.

Among gold stocks, B2Gold Corp. (BTO.TO) dropped 1.39 percent, Yamana Gold Inc. (YRI.TO) shed 1.05 percent, Barrick Gold Corp. (ABX.TO) up 0.10 percent, Goldcorp Inc. (G.TO) down 0.06 percent, and Detour Gold Corp. (DGC.TO) adding 1.16 percent.

The Capped Materials Index added 0.59 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) advancing 0.92 percent.

The Diversified Metals & Mining Index gained 0.25 percent, with First Quantum Minerals Ltd. (FM.TO) up 1.04 percent, Lundin Mining Corp. (LUN.TO) up 0.97 percent, and Teck Resources Limited (TCK.B.TO) up 0.44 percent.

The Capped Industrials Index gained 0.61 percent, with Bombardier Inc. (BBD.B.TO) down 0.26 percent and Air Canada (AC.B.TO) up 5.87 percent.

The Capped Telecommunications Index dipped 0.07 percent, with Rogers Communications Inc. (RCI.B.TO) slipping 0.14 percent, Manitoba Telecom Services Inc. (MBT.TO) up 0.07 percent, and BCE Inc. (BCE.TO) surrendering 0.17 percent.

The Information Technology Index gathered 0.84 percent, with BlackBerry Limited (BB.TO) up 0.77 percent with the smartphone maker selecting Dr. Sandeep Chennakeshu to lead its new business unit -- BlackBerry Technology Solutions. Avigilon Corp. (AVO.TO) dropped 0.92 percent, while Celestica Inc. (CLS.TO) gained 1.2 percent.

The Capped Utilities Index declined 0.46 percent with Fortis Inc. (FTS.IR.TO) inching up 0.02 percent.

The Consumer Staples Index added 0.46 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) adding 0.65 percent, Metro Inc. (MRU.TO) up 1.79 percent, and Loblaw Companies Limited (L.TO) gathering 0.68 percent.

In economic news from the U.S., homebuilder confidence unexpectedly improved for the third consecutive month in August, a report from the National Association of Home Builders showed Monday. The NAHB/Wells Fargo Housing Market Index climbed to a reading of 55 in August from 53 in July. Economists expected the index to come in unchanged compared to the previous month.

Among the key economic events this week include the FOMC minutes, data on U.S. new home and existing home sales in July, report on weekly jobless claims, the Philadelphia Federal Reserve's manufacturing survey for August, and consumer price inflation report for July. The Conference Board's economic indicators are also in focus this week.

In economic news from the eurozone, data from Eurostat showed eurozone trade surplus to have increased unexpectedly in June, rising to EUR 16.8 billion from EUR 15.4 billion in May. Economists expected the trade surplus to decrease to EUR 15.1 billion.

Meanwhile, Bundesbank in its monthly report said geopolitical tensions may weigh on Germany's economic outlook.