TSX Ends Higher As Trade Worries Subside

(RTTNews) - The Canadian stock market ended modestly higher on Thursday, led by gains in financials, consumer staples and energy sections.

A firm trend in U.S. and European markets amid hopes a fresh round of trade talks between the U.S. and China later this month will help diffuse trade-war tensions, contributed to the improved sentiment in the market.

Better than expected manufacturing data for the month of June aided sentiment. According to the report released by Statistics Canada, manufacturing sales in Canada climbed 1.1% in June. as against expectations for an increase of 0.9%.

The benchmark S&P/TSX index ended up 77.15 points, or 0.48%, at 16,225.65, after scaling a low of 16,214.75 and a high of 16,287.70 intraday.

On Wednesday, the index ended down 182.17 points or 1.12%, at 16,148.50.

The Capped Financial Index gained 0.62%. Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO), Canadian Imperial Bank of Commerce (CM.TO) and National Bank of Canada (NA.TO) gained 0.35 to 0.85%.

Manulife Financial Corporation (MFC.TO) and Sun Life Financial Inc. (SLF.TO) ended higher by 0.75% and 1%, respectively.

The Capped Consumer Staples Index climbed up 1.76%. Alimentation Couche-Tard Inc. (ATD.B.TO), Loblaw Companies (L.TO), Saputo Inc. (SAP.TO), George Weston (WN.TO), Empire Company (EMP.A.TO), Cott Corporation

(BCB.TO), Maple Leaf Foods Inc. (MFI.TO) and The North West Company Inc. (NWC.TO) gained 1% - 3%, while Metro Inc. (MET.TO) gained 3.8%.

The Capped Energy Index ended up 0.5%. Suncor Energy (SU.TO), Crescent Point Energy (CPG.TO), Husky Energy (HSE.TO) and ARC Resources (ARX.TO) gained 0.8 to 1.7%.

Canadian Natural Resources (CNQ.TO) ended modestly higher, while Cenovus Energy (CVE.TO) and Encana Corporation (ECA.TO) closed modestly lower.

In the materials space, Franco-Nevada Corporation (FNV.TO) declined nearly 2%, Barrick Gold Corporation (ABX.TO) shed 0.8%, Goldcorp Inc. (G.TO) ended down 3.1%, Agnico Eagle Mines (AEM.TO) declined by 2.5%, Wheaton

Precious Metals Corp. (WPM.TO) ended lower by 3.5%, Teck Resources (TCK.B.TO) gained 1.5% and Methanex Corporation (MX.TO) moved up 1.8%, while First Quantum Minerals (FM.TO) spurted nearly 5%.

Vermilion Energy Inc. (VET.TO) announced a cash dividend of $0.23 CDN per share payable on September 17, 2018 to all shareholders of record on August 31, 2018. The stock failed to retain early gains and ended flat.

Rogers Communications Inc. (RCI.B.TO) gained 1.1% after the company announced that its Board of Directors declared a quarterly dividend totaling 48 cents per share on each of its outstanding Class B Non-Voting shares and Class A Voting shares.

In economic news from Asia, China's Ministry of Commerce said that a Chinese delegation led by vice commerce minister Wang Shouwen will travel to the U.S. in late August for trade talks to be held with U.S. Under Secretary of Treasury for International Affairs David Malpass.

The Turkish lira rebounded on news of financial support from Qatar and ahead of a presentation by Finance Minister Berat Albayrak to investors. Still, Turkey crisis continue to linger with the U.S. ruling out the possibility of

removing steel tariffs that have contributed to a currency crisis in Turkey even if Ankara frees a U.S. pastor.

Meanwhile, reports quote Canada's economic development minister as saying that Ottawa is considering "every conceivable option," if the Trump administration follows through on its warning of levying tariffs on the auto sector.

Asian stocks ended mostly weak on Thursday, although markets ended well off their day's lows after China said it has accepted an invitation from the U.S. for a new round of trade talks to be held in late August.

Major European markets edged higher as worries about Turkey eased after the lira extended gains for a third day on news of financial support from Qatar and ahead of a presentation by Finance Minister Berat Albayrak to investors.

Wall Street ended on an upbeat note, with encouraging economic data, some strong earnings reports, including from Walmart and expectations of a solution to the U.S-China trade dispute lifting stock prices higher.

In U.S. economic news, Labor Department's report showed first-time claims for U.S. unemployment benefits unexpectedly edged lower in the week ended August 11th, dipping to 212,000, from the previous week's revised level of 214,000.

Growth in Philadelphia-area manufacturing activity slowed by much more than anticipated in the month of August, according to a report released by the Federal Reserve Bank of Philadelphia. The Philly Fed said its index for current general activity tumbled to 11.9 in August from 25.7 in July.

New residential construction rebounded by much less than expected in the month of July, according to the report released by the Commerce Department. The report said housing starts rose by 0.9% to an annual rate of 1.168 million in July after plunging by 12.9% to a revised rate of 1.158 million in June.

The Commerce Department also said building permits climbed by 1.5% to an annual rate of 1.311 million in July after dipping by 0.7% to a revised rate of 1.292 million in June.

In commodities, crude oil futures for September delivery ended up $0.45, or 0.7%, to settled at $65.46 a barrel.

Natural gas for September was down 0.007 or 0.24% at $2.933 per million btu.

Gold futures for December settled down $1, or 0.84%, at $1,184.00 an ounce, after plunging to a low of $1,167.10 earlier in the session.

Silver for September settled up $0.259, at $14.713 an ounce. Copper futures for September ended up $0.0565, at $2.616 per pound.