TSX Ends Higher On Energy Stocks, Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session Wednesday, on cue from rising global equity markets, and after the country's central bank maintained its interest rates.

Energy stocks were among the best performers with the price of crude oil surging a near six percent on the New York Mercantile Exchange. Gold and mining stocks also trended higher as metal prices rose.

The Bank of Canada announced Wednesday morning that it is maintaining its target for the overnight rate at 0.75 percent.

Markets in Europe ended in the green, with the European Central Bank holding its key interest rates unchanged at a record low for a sixth consecutive policy session amid signs that the bank's massive stimulus via asset purchases is helping to boost activity in the euro area economy. The Governing Council kept the refinancing rate unchanged at a record low 0.05 percent, following its meeting in Frankfurt, in line with economists' expectations.

Markets in the United States also ended on a positive note, after yesterday's mixed performance. Nevertheless, the positive reaction to the latest batch of earnings reports have overshadowed some weaker than expected economic data. Quarterly results from Intel were in line with expectations, while Delta Air Lines surpassed expectations.

Partly reflecting a sharp pullback in utilities output, the Federal Reserve's report on Wednesday showed U.S. industrial production to have dropped more than expected in March. Meanwhile, manufacturing activity in New York unexpectedly contracted in April, due partly to continued decline in new orders, with the index turning negative for the first time since last December.

After reporting a notable deterioration in U.S. homebuilder confidence in the previous month, the National Association of Home Builders' report on Wednesday showed homebuilder confidence to have rebounded more than expected in April.

The benchmark S&P/TSX Composite Index closed Monday at 15,383.59, down 4.84 points or 0.03 percent. The index scaled an intraday high of 15,446.45 and a low of 15,352.14.

On Tuesday, the index closed up 5.59 points or 0.04 percent, at 15,389.28. The index scaled an intraday high of 15,402.98 and a low of 15,342.06.

Gold futures ended higher as the dollar trended lower against a band of select currencies following some soft economic data from the U.S., even as uncertainty prevailed among investors over the Federal Reserve's next move on plans to hike rates.

The Gold Index gained 1.74 percent, with gold for June delivery gaining $8.70 or 0.7 percent to settle at $1,201.30 an ounce on the New York Mercantile Exchange Wednesday.

Goldcorp Inc. (G.TO) gained 2.29 percent, while Yamana Gold Inc. (YRI.TO) jumped 4.18 percent. Among other gold stocks, Kinross Gold Corp (K.TO) slipped 0.70 percent, Eldorado Gold Corp. (ELD.TO) gained 3.28 percent, and Barrick Gold Corp. (ABX.TO) added 1.08 percent.

Crude oil prices ended sharply higher after an official weekly oil inventory report from the Energy Information Administration showed crude stockpiles to have increased less than expected last week. Oil prices were also supported by a weak dollar, with the monthly oil-market report from the International Energy Agency revising upwardly its demand growth estimate for 2015.

The Energy Index jumped 2.58 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, surging $3.10 or 5.8 percent to settle at $56.45 a barrel on the New York Mercantile Exchange Wednesday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) jumped 6.38 percent, Suncor Energy Inc. (SU.TO) added 1.93 percent, and Canadian Natural Resources Limited (CNQ.TO) moved up 1.87 percent.

Crescent Point Energy Corp. (CPG.TO) rose 3.64 percent, while Cenovus Energy Inc. (CVE.TO) added 3.03 percent. Bonterra Energy (BNE.TO) advanced 3.98 percent, while Legacy Oil + Gas Inc. (LEG.TO) soared 13.33 percent.

Encana Corp. (ECA.TO) jumped 5.11 percent, while Pacific Rubiales Energy Corp. (PRE.TO) surged 15.16 percent.

The Capped Materials Index added 0.43 percent, mainly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.29 percent and Agrium Inc. (AGU.TO) down 1.98 percent.

The Diversified Metals & Mining Index gained 1.50 percent, as First Quantum Minerals Ltd. (FM.TO) moved up 2.02 percent and Lundin Mining Corp. (LUN.TO) dropped 0.20 percent.

Teck Resources (TCK.B.TO) gathered 1.19 percent, while Finning International Inc. (FTT.TO) moved up 1.37 percent.

The heavyweight Financial Index added 0.87 percent, as Bank of Nova Scotia (BNS.TO) gained 1.19 percent and Bank of Montreal (BMO.TO) added 1.34 percent.

National Bank of Canada (NA.TO) gained 1.28 percent, while Royal Bank of Canada (RY.TO) added 1.16 percent. Toronto-Dominion Bank (TD.TO) added 0.99 percent, while Canadian Imperial Bank of Commerce (CM.TO) gathered 1.25 percent.

The Capped Health Care Index dived 2.81 percent, as Extendicare (EXE.TO) gained 0.78 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) fell 3.10 percent, Catamaran Corp. (CCT.TO) shed 1.88 percent, and Concordia Healthcare (CXR.TO) dived 2.38 percent.

The Capped Industrials Index inched up 0.08 percent, with Bombardier Inc. (BBD.B.TO) up 3.08 percent. Canadian Pacific Railway Limited (CP.TO) shed 0.42 percent, while Canadian National Railway Company (CNR.TO) fell 1.17 percent.

The Information Technology Index gathered 1.04 percent, with BlackBerry Limited (BB.TO) gaining 0.82 percent after announcing the availability of BlackBerry Leap in the United Kingdom and roll-out in major markets.

Among other tech stocks, Constellation Software Inc. (CSU.TO) moved up 3.70 percent, Sierra Wireless, Inc. (SW.TO) gained 2.32 percent, and Descartes Systems Group Inc. (DSG.TO) inched up 0.05 percent.

The Capped Telecommunication Index added 0.10 percent, with BCE Inc. (BCE.TO) down 1.55 percent and Rogers Communications Inc. (RCI.B.TO) down 1.70 percent. Manitoba Telecom Services Inc. (MBT.TO) jumped 4.78 percent.

TELUS Corp. (T.TO) shed 1.04 percent, after announcing the investment of $4 billion in new infrastructure and facilities across British Columbia through 2018.

AutoCanada Inc. (ACQ.TO) jumped 5.07 percent, after agreeing to buy the operating assets of North Hill Motors.

Ballard Power Systems Inc. (BLD.TO) climbed 3.87 percent, after receiving an order from a Chinese customer to supply its next-generation FCvelocity-HD7 power modules for 8 buses.

Penn West Petroleum Ltd. (PWT.TO) surged 6.67 percent after revealing an agreement to sell royalties to Freehold Royalties (FRU.TO) for $321 million.

On the economic front, Canadian existing home sales increased by 4.1 percent in March, according to a report from the Canadian Real Estate Association this morning.

Statistics Canada also reported this morning that Canadian manufacturing sales declined by 1.7 percent in February. Economists had expected an increase of 0.1 percent.

On the economic front, a Federal Reserve report on Wednesday showed U.S. industrial production to have dropped more than expected in March. The Fed said industrial production fell 0.6 percent in March after inching up 0.1 percent in February. Economists expected production to drop by 0.3 percent.

Manufacturing activity in New York unexpectedly contracted in April, a report from the Federal Reserve Bank of New York showed Wednesday. The New York Fed's general business conditions index dropped to a negative 1.2 in April from a positive 6.9 in March, with a negative reading indicating a contraction in regional manufacturing activity.

The index turned negative for the first time since last December, surprising economists, who had expected the index to inch up to 7.0.

A report from the National Association of Home Builders on Wednesday showed homebuilder confidence rebounded rebounded more than expected in April, after a notable deterioration in U.S. homebuilder confidence in the previous month. The NAHB/Wells Fargo Housing Market Index jumped to 56 in April from a downwardly revised 52 in March. Economists expected the index to climb to 55 from a reading of 53 originally reported for the previous month.

China's gross domestic product expanded 7.0 percent on year in the first quarter of 2015, the National Bureau of Statistics said on Wednesday, coming in at 14,066.7 billion yuan. The headline figure was in line with expectations while slowing from 7.3 percent in the previous three months.

Eurozone merchandise trade surplus for February increased from last year, although weaker than expected, data from the Eurostat showed Wednesday. The euro area recorded an unadjusted trade surplus of EUR 20.3 billion in February, up from EUR 14.4 billion in the same month last year. Economists were looking for a surplus of EUR 21.0 billion.

Germany's consumer prices increased for the second straight month in March as initially estimated, final data from the statistical office Destatis showed Wednesday. Consumer prices rose 0.3 percent in March from last year, following a 0.1 percent increase in February. The annual increase matched the preliminary estimate published on March 30.

French consumer prices declined for the third straight month in March, data from the statistical office Insee showed Wednesday. Consumer prices fell 0.1 percent year-on-year in March, slower than February's 0.3 percent decrease. This was the third consecutive fall. Economists had forecast prices to remain flat in March.