TSX Ends Higher As Global Stocks Rally On Greek Deal -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Monday, tracking rising global equity markets, after Greece and its creditors reached an agreement on a new bailout for the debt-laden country.

All major sectors of the main index ended in positive territory, led mainly by mining stocks.

Eurozone leaders unanimously reached an agreement early Monday to start talks for a EUR 82-86 billion third bailout program for Greece after hours of negotiations, empowering the country to battle a severe economic crisis and remain in the single currency bloc.

Greece needs EUR 7 billion by July 20 and an extra EUR 5 billion by August.

Markets across Europe ended in the green after a "compromise" was reached on a Greek bailout deal at early-morning talks Monday. Eurozone ministers have given Greece until Wednesday to pass new laws, including tax and pension reforms, to help avoid losing access to the common currency bloc.

Markets in the United States also settled in positive territory, with the news of the Greek compromise cheered by investors. Investors now await the release of some key economic data in the coming days, including reports on retail sales, inflation, and housing starts.

Federal Reserve Chair Janet Yellen's will also give her semi-annual congressional testimony this week. Yellen will appear before the House Financial Services Committee on Wednesday and before the Senate Banking Committee on Thursday.

The benchmark S&P/TSX Composite Index closed Monday at 14,533.22, up 122.15 points or 0.85 percent. The index scaled an intraday high of 14,566.02 and a low of 14,453.26.

On Friday, the index closed higher by 132.58 points or 0.93 percent, at 14,411.07. The index scaled an intraday high of 14,419.52 and a low of 14,338.06.

Crude oil futures ended lower on concerns of a supply glut after talks between Iran and the West neared a deal, even as worries over Greece eased after a last-minute deal with creditors.

The Energy Index inched up 0.07 percent, with U.S. crude oil futures for August delivery $0.54 or 1.0 percent, to settle at $52.20 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.12 percent, while Canadian Natural Resources Limited (CNQ.TO) moved up 0.51 percent. Crescent Point Energy Corp. (CPG.TO) declined 4.76 percent, while Encana Corp. (ECA.TO) dipped 0.08 percent.

Pacific Rubiales Energy Corp. (PRE.TO) surged 6.55 percent.

Cenovus Energy Inc. (CVE.TO) inched up 0.27 percent, Canadian Oil Sands (COS.TO) shed 0.56 percent, and Enbridge (ENB.TO) added 1.58 percent.

Gold futures ended lower after Greece reached a deal to land a third bailout following last-ditch efforts in talks between Greece and its creditors with an agreement on Sunday. Nevertheless, the deal still needs to be approved by lawmakers in Athens.

The Gold Index inched up 0.09 percent, with gold for August delivery shedding $2.50 or 0.2 percent, to settle at $1,155.40 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.19 percent, Barrick Gold Corp. (ABX.TO) slipped 1.01 percent, and Yamana Gold Inc. (YRI.TO) fell 2.92 percent. IAMGOLD Corp. (IMG.TO) gained 2.61 percent.

The Capped Materials Index gained 1.09 percent, as Agrium Inc. (AGU.TO) gained 1.88 percent and Agnico Eagle Mines Limited (AEM.TO) dipped 2.88 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) moved up 0.64 percent.

The Diversified Metals & Mining Index surged 4.46 percent, as First Quantum Minerals Ltd. (FM.TO) jumped 5.46 percent, and HudBay Minerals (HBM.TO) climbed 3.14 percent. Sherritt International (S.TO) dipped 0.56 percent, while Teck Resources Limited (TCK-B.TO) surged 7.64 percent.

Capstone Mining (CS.TO) ended flat at $1.15 a share, after announcing it had produced 21,100 tonnes of copper in the second quarter.

The heavyweight Financial Index added 0.32 percent, as Royal Bank of Canada (RY.TO) added 0.44 percent, National Bank of Canada (NA.TO) fell 0.43 percent, and Bank of Montreal (BMO.TO) gathered 0.43 percent.

Toronto-Dominion Bank (TD.TO) moved up 0.04 percent, Bank of Nova Scotia (BNS.TO) gathered 0.52 percent, and Canadian Imperial Bank of Commerce (CM.TO) dipped 0.23 percent.

The Capped Health Care Index added 1.95 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 1.58 percent, Concordia Healthcare Corp. (CXR.TO) jumped 3.73 percent, and Catamaran (CCT.TO) gathered 0.58 percent.

The Capped Industrials Index gained 0.88 percent, as Bombardier Inc. (BBD-A.TO) added 1.52 percent and Finning International Inc. (FTT.TO) moved up 2.26 percent. Canadian National Railway (CNR.TO) moved up 1.62 percent, while Canadian Pacific Railway (CP.TO) gathered 0.27 percent. Air Canada (AC.TO) gained 1.14 percent.

The Capped Information Technology Index moved up 1.60 percent. BlackBerry Limited (BB.TO) is advancing 0.82 percent and Constellation Software (CSU.TO) moved up 1.11 percent. Descartes Systems Group (DSG.TO) gained 0.59 percent, while Avigilon (AVO.TO) added 3.95 percent.

The Capped Telecommunication Index moved up 1.02 percent, as TELUS Corp. (T.TO) added 0.43 percent, BCE Inc. (BCE.TO) moved up 1.20 percent, and Manitoba Telecom Services (MBT.TO) gained 1.89 percent.

Rogers Communication (RCI-B.TO) added 0.64 percent, despite a report from Globe and Mail that the company has put The Shopping Channel up for sale.

Tethys Petroleum Limited (TPL.TO) surged 22.58 percent, after the company confirmed a possible offer from Nostrum Oil & Gas.

Paladin Energy Ltd. (PDN.TO) jumped 7.32 percent, after rejecting recent media allegations regarding the company's operating activities in Australia, Namibia and Malawi.

In economic news, the U.S. recorded a budget surplus of $52 billion in June, which is about $19 billion lower than the surplus seen a year ago. Economists expected a surplus of $51 billion.

Elsewhere, Chinese exports increased at a faster-than-expected pace in June, while imports fell less-than-expected, official data showed Monday. Exports rose 2.8 percent year-over-year in June, exceeding economists' expectations for 1.0 percent growth.

Meanwhile, imports slid 6.1 percent in June from the previous year, much slower than the 15.5 percent sharp decline expected by economists. China's trade surplus came in at $46.54 billion in June, compared to the surplus of $59.49 billion in May. Economists expected a surplus of $56.7 billion in June.

Japan's industrial production dropped less than initially estimated in May, data from the Ministry of Economy, Trade and Industry showed Monday. Industrial production declined a seasonally adjusted 2.1 percent month-over-month in May, revised down from a 2.2 percent drop in the flash data. In April, production had risen 1.2 percent. Shipments in May decreased 1.9 percent from the previous month, came in line with preliminary report.