TSX Ends Higher As Gold Stocks Surge -- Canadian Commentary

(RTTNews) - Canadian stocks ended at a seven-week high on Tuesday, led by a surge in gold stocks after some positive economic data from the U.S., even as news that Japan has deferred its sales tax hike proposal sent market sentiments soaring.

The Japanese government's decision to postpone a planned sales tax hike by 18 months and a positive reading on German economic sentiment aided the uptick. Prime Minister Shinzo Abe has also announced a snap election for a fresh mandate,

In some encouraging data from the U.S., producer prices unexpectedly increased in October, while a report from the National Association of Home Builders showed homebuilder's confidence to have rebounded more than anticipated in November.

Gold stocks are moving up, tracking higher bullion prices, even as energy stocks struggled due to sluggish oil prices. The other major gainers were the healthcare and telecom stocks.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,972.97, up 90.47 points or 0.61 percent. The index scaled a intraday high of 14,989.96 and a low of 14,911.93.

On Monday, the index closed up 39.40 points or 0.27 percent at 14,882.50, after scaling a intraday high of 14,950.53 and a low of 14,825.86.

Crude oil ended sharply lower ahead of the official weekly crude inventory data from the Energy Information Administration, with investors focused on the Organization of the Petroleum Exporting Countries meet due later this month.

The Energy Index shed 0.29 percent, with U.S. crude oil futures for December delivery shedding $1.03 or 1.4 percent to close at $74.61 a barrel on the Nymex Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) slipped 0.05 percent, Talisman Energy Inc. (TLM.TO) fell 0.76 percent, Canadian Oil Sands Limited (COS.TO) gained 1.16 percent, Cenovus Energy Inc. (CVE.TO) fell 0.32 percent, and Pacific Rubiales Energy Corp. (PRE.TO) dropped 1.05 percent.

Canadian Natural Resources Limited (CNQ.TO) added 0.80 percent, while Enbridge, Inc. (ENB.TO) also gained 0.80 percent.

Gold futures ended higher on some bargain buying with the dollar trending lower against some major currencies after the Japanese economy slipped into recession.

The Global Gold Index jumped 5.18 percent, with gold for December delivery gaining $13.60 or 1.2 percent to settle at $1,197.10 an ounce on the New York Mercantile Exchange Tuesday.

In the gold space, Kinross Gold Corp. (K.TO) surged 10.49 percent, Goldcorp Inc. (G.TO) added 3.66 percent, Barrick Gold Corp. (ABX.TO) soared 6.89 percent, Yamana Gold Inc. (YRI.TO) jumped 6.90 percent, Detour Gold Corp. (DGC.TO) moved up 3.35 percent, IAMGOLD Corp. (IMG.TO) soared 7.00 percent, and Eldorado Gold Corp. (ELD.TO) moved up 4.48 percent.

The Capped Materials Index soared 3.46 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) surging 4.82 percent.

The Healthcare Index gained 1.77 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) advanced 3.90 percent, Catamaran Corp. (CCT.TO) added 0.36 percent and Extendicare Inc. (EXE.TO) was up 0.73 percent.

The heavyweight Financial Index moved up 0.12 percent, as Bank of Nova Scotia (BNS.TO) gained 0.58 percent, Toronto-Dominion Bank (TD.TO) down 0.54 percent, Canadian Imperial Bank of Commerce (CM.TO) added 0.11 percent, and Bank of Montreal (BMO.TO) dropped 0.04 percent. National Bank of Canada (NA.TO) dived 1.67 percent, while Royal Bank of Canada (RY.TO) edged down 0.11 percent.

The Diversified Metals & Mining Index slipped 0.21 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.58 percent, Teck Resources Limited (TCK.B.TO) up 0.98 percent, Lundin Mining Corporation (LUN.TO) down 3.17 percent, and Sherritt International Corp. (S.TO) down 0.72 percent.

The Capped Industrials Index dropped 0.14 percent, with Bombardier Inc. (BBD.B.TO) up 0.24 percent after its subsidiary Bombardier Transportation signed a contract for about 145 million pounds to supply 27 new four-car trains, or 108 cars, for Gatwick Express.

Air Canada (AC) up 2.49 percent, while WestJet Airlines Ltd. (WJA.TO) slipped 1.16 percent after indicating a tentative agreement with its more than 1,200 pilots, represented by the WestJet Pilot Association or WJPA.

The Information Technology Index gained 0.48 percent with smartphone maker BlackBerry Limited (BB.TO) plunging 8.01 percent. CGI Group Inc. (GIB.A.TO) added 1.27 percent, Open Text Corporation (OTC.TO) added 0.28 percent, and Constellation Software Inc. (CSU.TO) gathered 1.78 percent.

The Telecom Index added 1.34 percent with Rogers Communications Inc. (RCI.B.TO) up 1.54 percent, TELUS Corp. (T.TO) gained 1.04 percent, and BCE Inc. (BCE.TO) up 1.29 percent.

The Consumer Discretionary Index moved up 0.23 percent, with Tim Hortons Inc. (THI.TO) up 0.83 percent.

The Consumer Staples Index added 0.81 percent, with Saputo Inc. (SAP.TO) up 1.04 percent and Metro Inc. (MRU.TO) up 1.64 percent.

Loblaw Companies Ltd. (L.TO) is down 0.33 percent, after reports said the federal Competition Bureau is probing certain practices related to price strategies and programs by the company with respect to a number of its suppliers.

George Weston Ltd. (WN.TO) inched up 0.11 after reporting third quarter net earnings of $53 million or $0.30 per share, down 68.5 percent from the year ago period.

Sears Canada, Inc. (SCC.TO) dropped 2.18 percent after reporting a net loss of C$118.7 million or C$1.16 per share for the third quarter, compared with a loss of C$48.8 million or C$0.48 per share last year.

In economic news, producer prices in the U.S. unexpectedly increased in October with prices for services and food leading the way higher, a report from the Labor Department showed Tuesday. The producer price index for final demand rose 0.2 percent in October after edging down 0.1 percent in September. Economists expected the index to dip by another 0.1 percent.

A report from the National Association of Home Builders on Tuesday showed U.S. homebuilder's confidence to have rebounded much more than anticipated in November, after having reported a notable deterioration in the previous month. The NAHB/Wells Fargo Housing Market Index jumped to 58 in November after tumbling to 54 in October. Economists expected the index to show a modest increase to 55.

German investor confidence improved for the first time this year, exceeding expectations, boosted by signs of stability in the biggest eurozone economy. The ZEW Indicator for Economic Sentiment climbed to 11.5 from -3.6 in October, a survey by Mannheim-based Centre for European Economic Research showed Tuesday. Economists expected a modest improvement in the index to 0.5.

U.K. inflation rose unexpectedly from a 5-year low in October as transport cost fell at a slower pace, while factory gate prices continued its downward trend. Inflation rose to 1.3 percent in October from 1.2 percent in September, the Office for National Statistics said Tuesday. Economists had forecast the rate to remain at 1.2 percent.

House prices growth in the United Kingdom quickened unexpectedly in September, data from the Office for National Statistics showed Tuesday. House prices grew 12.1 percent year-on-year in September following the 11.7 percent rise in August. Economists expected prices to climb 11.2 percent.