TSX Ends Higher As Oil Prices Rise -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fourth straight session on Tuesday, driven by energy stocks as oil prices surged to close at its highest for the year. The main index extended gains from the previous three sessions on optimism the U.S. Federal Reserve rate hike may delayed on the heels of Friday's disappointing March jobs report.

Markets look forward to outcome of the U.S. Federal Reserve's monetary policy meet on Wednesday, with expectation the Fed may provide cues about its outlook for interest rates with the release of the minutes.

Markets in Europe have returned to action Tuesday, following a long Easter holiday weekend. European investors got their first opportunity to react to Friday's weak U.S. jobs report. Investor confidence also received a boost from the Eurozone investor confidence data, which rose to the highest level in nearly seven-and-a-half years in April.

Markets in the United States surrendered gains to end in largely in negative territory, with little or new major U.S. economic data for direction after a disappointing jobs report last Friday. Nonetheless, investor optimism prevailed for a delay to a rate hike by the Fed, fueled further by comments from Atlanta Fed President Dennis Lockhart, who in an interview said he favors pushing out the first rate hike beyond the next two meetings.

"I would probably be biased toward the July or September dates as opposed to June," said Lockhart. He added, "We will have more data and we will give the economy a little more time to prove out the thesis that I laid out, that the first quarter was anomalous again, just like a year ago."

Nonetheless, trading activity has been somewhat subdued,. Investors are also looking ahead to the release of quarterly results from Alcoa after the close of trading on Wednesday, which is views as the unofficial kick-off to the U.S. earnings reporting season.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,188.84, up 88.19 points or 0.58 percent. The index scaled an intraday high of 15,266.62 and a low of 15,115.25.

On Monday, the index closed up 74.03 points or 0.49 percent, at 15,100.65. The index scaled an intraday high of 15,160.72 and a low of 15,016.49.

Gold futures ended lower, retreating from a near seven-week high registered yesterday, as the dollar strengthened against a basket of major currencies with little or no major economic data on view.

The Gold Index shed 1.76 percent, with gold for April delivery dropping $8.00 or 0.7 percent to settle at $1,210.60 an ounce on the New York Mercantile Exchange Tuesday.

Among other gold stocks, Goldcorp Inc. (G.TO) shed 1.16 percent, Kinross Gold Corp (K.TO) tumbled 2.3 percent, Eldorado Gold Corp. (ELD.TO) fell 0.81 percent, Barrick Gold Corp. (ABX.TO) dropped 1.78 percent, and Yamana Gold Inc. (YRI.TO) surrendered 1.65 percent.

Crude oil surged for a second day ahead of the weekly official oil inventory report from the Energy Information Administration with investors expecting the data to show a decline in supplies.

Crude prices jumped over six percent to a seven-week high on Monday, with fading worries of a supply glut as Iran reenters the market after a deal with western powers over its nuclear program. Investors expect that it could take Iran several months to ramp up its oil production for export.

The Energy Index jumped 1.41 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, soaring $1.84 or 3.5 percent to settle at $53.98 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) added 0.62 percent, Suncor Energy Inc. (SU.TO) moved up 0.67 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 1.96 percent.

Crescent Point Energy Corp. (CPG.TO) added 1.66 percent, while Cenovus Energy Inc. (CVE.TO) gathered 1.82 percent. Bonterra Energy (BNE.TO) jumped 4.95 percent, while Legacy Oil + Gas Inc. surged 8.65 percent.

Encana Corp. (ECA.TO) gained 0.69 percent, while Pacific Rubiales Energy Corp. (PRE.TO) added 0.98 percent.

The Diversified Metals & Mining Index added 0.42 percent, as First Quantum Minerals Ltd. (FM.TO) gathered 2.23 percent and Lundin Mining Corp. (LUN.TO) shed 0.58 percent.

Capstone Mining (CS.TO) gained 3.97 percent, Finning International (FTT.TO) added 2.14 percent, and Sherritt International (S.TO) moved up 0.90 percent.

Teck Resources (TCK.B.TO) slipped 0.11 percent, even as the company reported a flash fire in the dryer complex at the its Greenhills Operations near Elkford, British Columbia. The fire was quickly extinguished.

Hudson's Bay (HBC.TO) jumped 5.56 percent, after reporting fourth-quarter earnings of C$0.61 per share, up from C$0.16 per share last year.

The Capped Materials Index shed 0.65 percent, mainly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) added 1.22 percent and Agrium Inc. (AGU.TO) gathered 0.67 percent.

The heavyweight Financial Index moved up 0.72 percent, as Bank of Nova Scotia (BNS.TO) gathered 1.00 percent and Bank of Montreal (BMO.TO) gained 1.01 percent.

National Bank of Canada (NA.TO) added 0.99 percent, Royal Bank of Canada (RY.TO) added 0.96 percent. Toronto-Dominion Bank (TD.TO) gathered 0.81 percent, while Canadian Imperial Bank of Commerce (CM.TO) advanced 0.63 percent.

The Capped Health Care Index added 0.35 percent, as Extendicare (EXE.TO) moved up 0.40 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) gathered 0.86 percent, and Catamaran Corp. (CCT.TO) gained 0.16 percent.

The Capped Industrials Index moved up 0.56 percent, as Bombardier Inc. (BBD.B.TO) added 3.52 percent, Canadian Pacific Railway Limited (CP.TO) gained 0.48 percent and Canadian National Railway (CNR.TO)advanced 0.45 percent.

Air Canada (AC.TO) gained 1.01 percent, after having reported a March system load factor of 83.1 percent, versus 81.7 percent a year ago.

The Information Technology Index jumped 2.14 percent, as BlackBerry (BB.TO) inched up 0.09 percent and Constellation Software Inc. (CSU.TO) gained 4.18 percent. Sierra Wireless, Inc. (SW.TO) added 2.36 percent, while Descartes Systems Group Inc. (DSG.TO) gained 0.41 percent.

The Capped Telecommunication Index moved up 0.24 percent, with BCE Inc. (BCE.TO) up 0.58 percent, and TELUS Corp. (T.TO) added 0.47 percent. Manitoba Telecom Services Inc. (MBT.TO) dipped 0.08 percent.

Resverlogix Corp. (RVX.TO) surged 15.38 percent, after having received two China patent approvals covering RVX-208.

On the economic front, Eurozone investor confidence rose to the highest level in nearly seven-and-a-half years in April, amid signs of strengthening in the euro area economy, a survey by think tank Sentix revealed Tuesday. The investor confidence index for Eurozone climbed to 20 from 18.6 in March. The latest score was the highest since August 2007.

The Eurozone private sector continued to improve in March with the Purchasing Mangers' Index rising to an 11-month high to mark its joint highest level for almost four years. The final composite output index rose to 54 in March from 53.3 in February, final data from Markit Economics showed today. A reading above 50 indicates expansion in the private sector.

But the score was marginally below the flash estimate of 54.1. The reading reached an 11-month high and its joint-highest for almost four years.

Eurozone producer prices logged the first monthly increase in five months in February, data from Eurostat showed Tuesday. Industrial producer prices for the domestic market rose 0.5 percent from January, when they fell 1.1 percent, which was revised from 0.9 percent fall.

British services sector registered its fastest growth in seven months in March as wider economic recovery and improving confidence boosted new business, survey data from Markit Economics and the Chartered Institute of Procurement & Supply showed Tuesday.

The Markit/CIPS Purchasing Managers' Index for the services sector climbed more-than-expected to 58.9 from February's 56.7. It was the strongest growth in activity since August last year and was above the expected reading of 57.