TSX Ends Higher On Commodities, Data - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Thursday, tracking rising U.S. and European equity markets as commodities strengthened on some upbeat Chinese economic data showing manufacturing growth to have climbed to a seven-month high in October

In economic news, China's manufacturing growth hit a seven-month high in October, adding to evidence that the recovery is gaining strength after the slowdown witnessed in the first half of the year. Meanwhile, first-time claims for U.S. unemployment benefits fell less than expected in the week ended October 19, a report from the Labor Department showed Thursday, although the data continued to be distorted.

The S&P/TSX Composite Index closed Thursday at 13,324.75, up 81.43 points or 0.61 percent. The index touched an intraday high of 13,329.28 and a low of 13,243.34.

The Diversified Metals & Mining Index climbed 2.66 percent, with First Quantum Minerals Ltd. (FM.TO) up 2.74 percent, Osisko Mining Corp. (OSK.TO) shed 0.76 percent, and Lundin Mining Corp. (LUN.TO) surged 4.55 percent.

Teck Resources (TCK_B.TO) gained 3.84 percent after reporting a higher third-quarter profit of C$267 million or C$0.46 per share, compared to C$256 million or C$0.44 per share a year before. Adjusted profit totaled C$252 million or C$0.44 per share in the recent quarter, down from last year's C$425 million or C$0.73 per share.

The Capped Materials Index jumped 2.89 percent mostly on gold stocks, although Potash Corporation of Saskatchewan Inc.(POT.TO) dropped 1.58 percent.

The fertilizer maker reported a third-quarter profit of $356 million or $0.41 per share down from $645 million or $0.74 per share in the same period last year as a result of weaker prices for all three nutrients and lower potash sales volumes. Analysts expected the company to report earnings of $0.43 per share for the quarter.

Gold futures ended lower on Wednesday mostly on profit taking, tracking declining global equity markets, after having recorded some hefty gains yesterday.

The Global Gold Index surged 4.33 percent, with gold futures for December delivery, the most actively traded contract, gaining $16.30 or 1.2 percent to close at $1,350.30 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 3.70 percent, while Barrick Gold Corp. (ABX.TO) added 4.13 percent. Kinross Gold Corp. (K.TO) gained 3.68 percent, while Eldorado Gold Corp. (ELD.TO) jumped 5.58 percent.

Goldcorp. (G.TO) added 4.48 percent after reporting third quarter adjusted net earnings of $190 million or $0.23 per basic share compared to $441 million or $0.54 per basic share in the third quarter of 2012. Analysts expected the company to report earnings of $0.20 per share for the quarter.

Agnico-Eagle Mines (AEM.TO) surged 18.51 percent after posting a strong third quarter profit and lifting its 2013 earnings guidance on record quarterly gold production.

Crude oil snapped a two-day loss to end higher Thursday, on demand growth prospects after some upbeat manufacturing data out of China.

The Energy Index added 0.88 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, gaining $0.25 or 0.3 percent to close at $97.11 a barrel Thursday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) added 1.17 percent, while Enbridge Inc.(ENB.TO) added 1.44 percent. Imperial Oil Limited (IMO.TO) edged up 0.13 percent, while Talisman Energy Inc. (TLM.TO) added 1.19 percent. Canadian Natural Resources Limited (CNQ.TO) gained 1.63 percent, while Encana Corp. (ECA.TO) shed 0.57 percent.

The Financial Index moved up 0.08 percent with Bank of Montreal (BMO.TO) up 0.18 percent, while Manulife Financial Corp. (MFC.TO) added 0.50 percent. The Bank of Nova Scotia (BNS.TO) slipped 0.05 percent, while Toronto-Dominion Bank (TD.TO) added 0.13 percent. National Bank of Canada (NA.TO) inched up 0.01 percent, while Royal Bank of Canada (RY.TO) gathered 0.23 percent.

The Information Technology Index added 0.85 percent, with smartphone maker BlackBerry Limited (BB.TO) added 1.78 percent.

The Capped Industrials Index gained 0.39 percent, with Air Canada (AC.B.TO) adding 0.57 percent and Bombardier Inc. (BBD.A.TO, BBD.B.TO) moving up 0.56 percent.

Communications and media company Rogers Communications, Inc. (RCI_B.TO) shed 2.66 percent after reporting a third-quarter profit of C$464 million or C$0.90 per share compared to C$466 million or C$0.90 per share in the same quarter last year. Adjusted earnings were C$501 million or C$0.97 per share, with analysts anticipating C$0.96 per share for the quarter.

In economic news from the U.S., the Labor Department said initial jobless claims dropped to 350,000 in the week ended October 19, a decrease of 12,000 from the previous week's revised figure of 362,000. Economists expected claims to fall to 340,000 from the 358,000 originally reported for the previous week.

Separately, the U.S. Commerce Department said trade deficit in August ticked up to $38.8 billion from a revised $38.6 billion in July. Economists expected a wider deficit of $40.0 billion from the $39.1 billion originally reported for the previous month. The value of imports were virtually unchanged at $228.0 billion, while the value of exports edged down to $189.2 billion from $189.3 billion.

China's manufacturing growth hit a seven-month high in October, with the flash manufacturing Purchasing Managers' Index rising more-than-expected to 50.9 from 50.2 in September, a survey by HSBC and Markit Economics showed Thursday.

From the eurozone, Germany's private sector economy expanded at the slowest pace in three months during October, as the slowdown in services growth offset improvement in manufacturing, preliminary data from Markit Economics showed. The flash composite output index dropped to a three-month low of 52.6 from 53.2 in September.

Meanwhile, an indicator of private sector performance in the euro area signaled expansion for the fourth straight month in October, but declined unexpectedly from a 27-month high, survey results showed. Due to a slowdown in services, the flash composite Purchasing Managers' Index dropped unexpectedly to 51.5 from 52.2 in September, Markit Economics said. The reading was expected at 52.4.