TSX Ends Higher As Resource Stocks Rebound -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Thursday, driven by rising resource stocks after data from the U.S. showed initial claims for unemployment benefits rose more than expected last week, fueling expectations the Federal Reserve would continue with its low interest rates for an extended period.

Investors largely ignored geopolitical concerns even as President Barack Obama confirmed the U.S. will expand its military campaign against the terrorist group known as the Islamic State. Obama said the U.S. would degrade and the ultimately destroy the group through a comprehensive and sustained counter-terrorism strategy that includes airstrikes in both Iraq and Syria.

The S&P/TSX Composite Index closed Thursday at 15,534.32, up 62.43 points or 0.40 percent. The index scaled a intraday high of 15,546.54 and a low of 15,432.28.

On Wednesday, the index closed lower amid speculation of a Federal Reserve rate hike happening sooner than earlier forecast.

Crude oil ended sharply higher on supply concerns after the European Union's latest round of sanctions on Russia for its involvement in eastern Ukraine which comes into force tomorrow.

The Energy Index gained 0.16 percent, with U.S. crude oil futures for October delivery surging $1.16 or 1.3 percent to close at $92.83 a barrel Thursday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dropped 0.36 percent, Enbridge Inc. (ENB.TO) gained 0.23 percent, Suncor Energy Inc. (SU.TO) moved up 0.25 percent, Encana Corp. (ECA.TO) surrendered 1.16 percent, Canadian Natural Resources Limited (CNQ.TO) gained 1.45 percent, and Bankers Petroleum Ltd. (BNK.TO) gathered 2.11 percent.

The Financial Index added 0.26 percent, with Toronto-Dominion Bank (TD.TO) slipping 0.07 percent, Canadian Imperial Bank of Commerce (CM.TO) gaining 0.66 percent, Royal Bank of Canada (RY.TO) added 0.76 percent, National Bank of Canada (NA.TO) shed 0.49 percent, Bank of Nova Scotia (BNS.TO) added 0.55 percent, and Bank of Montreal (BMO.TO) edged up 0.18 percent.

Sun Life Financial Inc. (SLF.TO) edged down 0.05 percent, while Power Corp. of Canada (POW.TO) inched up 0.09 percent.

Gold futures shed ended lower after data from the U.S. showed initial claims for unemployment benefits rose more than expected last week, fueling expectations the Federal Reserve would tone down its hawkish stand on hiking interest rates.

Global Gold Index gained 1.85 percent, with gold for December delivery dropping $6.30 or 0.5 percent to close at $1,239.00 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Goldcorp Inc. (G.TO) added 1.63 percent, B2Gold Corp. (BTO.TO) shed 0.42 percent, Yamana Gold Inc. (YRI.TO) gathered 1.88 percent, Eldorado Gold Corp. (ELD.TO) gained 2.70 percent, and Barrick Gold Corp. (ABX.TO) moved up 1.69 percent.

The Capped Materials Index added 1.26 percent mostly on gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) edging up 0.03 percent.

The Diversified Metals & Mining Index jumped 1.92 percent, with First Quantum Minerals Ltd. (FM.TO) adding 1.49 percent, Lundin Mining Corp. (LUN.TO) moved up 0.68 percent, Sherritt International Corp. (S.TO) added 0.51 percent, and Teck Resources Limited (TCK.B.TO) gained 0.56 percent.

Major Drilling Group International Inc. (MDI.TO) fell 1.10 percent, while Turquoise Hill Resources Ltd. (TRQ.TO) surged 8.83 percent.

The Healthcare Index added 1.06 percent, with Valeant Pharmaceuticals International Inc. (VRX.TO) gained 1.43 percent, Catamaran Corp. (CCT.TO) moved up 0.44 percent, and Extendicare Inc. (EXE.TO) gathered 1.33 percent.

The Capped Industrial Index gained 0.43 percent, with Canadian National Railway Company (CNR.TO) added 0.28 percent, SNC-Lavalin Group Inc. (SNC.TO) dropped 1.60 percent, and Finning International Inc. (FTT.TO) dropped 0.82 percent. Bombardier Inc. (BBD.B.TO) added 0.54 percent, while Air Canada (AC.B.TO) shed 0.23 percent.

The Information Technology Index is up 1.63 percent, with BlackBerry Limited (BB.TO) jumping 6.06 percent announcing the acquisition of Movirtu, a virtual identity solutions provider for mobile operators.

Celestica Inc. (CLS.TO) added 1.27 percent, Constellation Software Inc. (CSU.TO) edged up 0.18 percent, and Avigilon Corp. (AVO.TO) jumped 4.49 percent.

Dollarama Inc. (DOL.TO) edged up 0.07 percent after reporting a second-quarter profit of C$68.9 million or C$1.03 per share, up from C$59.8 million or C$0.82 per share in the corresponding period last year. The company has also announced a 2-for-1 stock split.

Pembina Pipeline Corp. (PPL.TO) added 2.30 percent after the company said it would expand its previously announced Phase III pipeline expansions by constructing new 16" and 12" diameter pipelines, in order to meet strong consumer demand.

In economic news from the U.S., data from the Labor Department showed initial jobless claims to have climbed to 315,000 in the week ended August 30, an increase of 11,000 from the previous week's revised level of 304,000. Economists expected claims to decline to 300,000 from 302,000 in the previous week.

Elsewhere, inflation in China slowed more than expected in August, as producer prices declined for the 30th consecutive month, providing leeway for the implementation of additional stimulus to offset the weakness in property sector.

Consumer price inflation in China slowed to a four-month low of 2 percent in August, the National Bureau of Statistics reported Thursday. Inflation in August was forecast to ease moderately to 2.2 percent from the 2.3 percent in July.

Markets also await the outcome of the U.S. Federal Reserve's two-day policy meet scheduled to take place on September 16 - 17. It is widely expected the Federal Reserve will cut its monthly bond-buying program by $10 billion, with expectations of probable clues as to when it may hike interest rates.