TSX Ends Higher As Mining, Energy Stocks Soar -- Canadian Commentary

(RTTNews) - Canadian stocks jumped to end at a more than two-month high Tuesday, extending gains from previous three sessions, tracking rising global equity markets in the U.S. and Europe, driven by energy stocks as oil prices surged amid speculations of supply cuts. The main index was also pushed higher by a spurt in mining and financial sectors.

European markets ended higher on hopes that the new government in Greece would be able to renegotiate its bailout terms with international lenders. Greek Finance Minister Yanis Varoufakis expressed optimism of a deal with Europe regarding on his country's bailout program. The economist-turned-finance minister ruled out accepting more bailout funds while hinting he had a solution to end the confrontation with international creditors.

Markets in the United States also ended deep in positive territory Tuesday, but capped by some weaker than expected factory orders report. The Commerce Department's report showed a sharp drop in new orders for U.S. manufactured goods in December that tumbled 3.4 percent.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,062.77, up 162.30 points or 1.09 percent. The index scaled an intraday high of 15,154.92 and a low of 14,955.79.

On Monday, the index closed up 226.99 points or 1.55 percent, at 14,900.47, having scaled an intraday high of 14,931.07 and a low of 14,713.87.

Crude oil extended hefty gains from for a third straight session to end sharply higher on speculation of supply cuts due to a significant decline in U.S. drilling activity and with the dollar dropping to a one week low.

The Energy Index surged 4.51 percent, with U.S. crude oil futures for March delivery, surging soared $3.48 or 7.0 percent to settle at $53.05 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) jumped 28.61 percent, Legacy Oil + Gas Inc. (LEG.TO) jumped 19.43 percent, Athabasca Oil Corp. (ATH.TO) soared 17.95 percent, Canadian Oil Sands (COS.TO) soared 20.53 percent, and Penn West Petroleum Ltd. (PWT.T)) surged 22.90 percent.

Canadian Natural Resources Limited (CNQ.TO) gained 1.75 percent, and Suncor Energy Inc. (SU.TO) added 0.51 percent.

Encana Corp. (ECA.TO) gained 7.71 percent, while Cenovus Energy Inc. (CVE.TO) moved up 2.03 percent. Crescent Point Energy (CPG.TO) jumped 7.60 percent, and Imperial Oil (IMO.TO) gained 2.74 percent.

The Diversified Metals & Mining Index soared 6.59 percent, as First Quantum Minerals Ltd. (FM.TO) surged 6.84 percent and Lundin Mining Corp. (LUN.TO) soared 9.17 percent. Finning International Inc. (FTT.TO) added 3.70 percent, while Teck Resources Limited (TCK.B.TO) jumped 7.43 percent.

HudBay Minerals (HBM.TO) gained 7.20 percent.

Gold futures ended sharply lower with traders opting for the riskier equity assets with energy prices climbing and on hopes that the new government in Greece would be able to renegotiate its bailout terms with international lenders.

The Global Gold Index dived 3.93 percent, with gold for April delivery tumbling $16.60 or 1.3 percent to settle at $1,279.20 percent on the New York Mercantile Exchange Tuesday.

Among other gold stocks, Yamana Gold Inc. (YRI.TO) dropped 5.20 percent, Kinross Gold Corp. (K.TO) fell 4.67 percent, and Barrick Gold Corp .(ABX.TO) fell 3.15 percent.

Goldcorp Inc. (G.TO) surrendered 3.46 percent, IAMGOLD (IMG.TO) dived 5.64 percent, and Franco-Nevada Corp. (FNV.TO) shed 4.70 percent. Eldorado Gold Corp. (ELD.TO) lost 4.78 percent.

The Capped Materials Index dropped 1.49 percent, mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) dropping 0.67 percent and Agrium Inc. (AGU.TO) down 1.34 percent.

The heavyweight Financial Index jumped 2.57 percent, as Bank of Montreal (BMO.TO) gained 2.39 percent, National Bank of Canada (NA.TO) surged 4.0 percent, Royal Bank of Canada (RY.TO) moved up 2.63 percent, and Toronto-Dominion Bank (TD.TO) advanced 2.86 percent.

Bank of Nova Scotia (BNS.TO) added 2.88 percent, while Canadian Imperial Bank of Commerce (CM.TO) gained 2.51 percent.

The Capped Industrials Index gathered 1.21 percent, as Bombardier Inc. (BBD.B.TO) added 1.70 percent and Air Canada (AC.TO) shed 1.179 percent.

Westjet Airlines (WJA.TO) dropped 2.51 percent, after reporting fourth quarter earnings per share of C$0.70, up 35 per cent from C$0.52 last year. Analysts expected earnings of C$0.73 per share for the quarter.

The Information Technology Index added 0.34 percent, as BlackBerry Limited (BB.TO) shed 2.69 percent, Constellation Software (CSU.TO) gained 2.74 percent, and Descartes Systems Group Inc. (DSG.TO) slipped 0.98 percent. Sierra Wireless, Inc. (SW.TO) added 2.78 percent.

The Healthcare Index dropped 1.05 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) fell 2.88 percent, Catamaran Corp. (CCT.TO) dropped 0.16 percent, and Extendicare Inc. (EXE.TO) added 0.14 percent.

The Capped Telecommunication Index dropped 0.53 percent, as Manitoba Telecom Services Inc. (MBT.TO) gained 1.29 percent, Rogers Communications Inc. (RCI.B.TO) dropped 0.51 percent, and TELUS Corp. (T.TO) shed 1.57 percent.

On the economic front, a report from the Commerce Department Tuesday showed a sharp drop in new orders for U.S. manufactured goods in December, with factory orders tumbling by 3.4 percent, exceeding the 2.2 percent drop forecast by economists.

Eurozone producer prices declined at the fastest pace in five years during December, data from Eurostat showed Tuesday. Producer prices fell 2.7 percent year-on-year in December, faster than the 1.6 percent decline in the previous month. Economists had forecast a 2.5 percent fall for the month.

U.K' s construction sector expansion quickened unexpectedly in January, survey data from Markit Economics showed Monday. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose to 59.1 in January from the seventeen month low of 57.6 in December. The score was forecast to fall to 57 in January.

Consumer price inflation in the developed economies was at its lowest in five years during December, due mainly to falling energy prices, data from the Organization for Economic Cooperation and Development (OECD) revealed Tuesday. The consumer price index climbed 1.1 percent annually in December following 1.5 percent rise in November. This was the lowest since October 2009, when prices rose just 0.2 percent.

From Asia, China's current account surplus dropped to $61.1 billion in the fourth quarter, the State Administration of Foreign Exchange said Tuesday. Meanwhile, the capital account showed a deficit of $91.2 billion. For the full year 2014, China recorded a surplus of $213.8 billion and a shortfall of $96 billion on the capital account.