TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Thursday, tracking rising global equity markets, after some upbeat data from the U.S. and Europe, driven largely by information technologies and consumer staples stocks. Nevertheless, the gains were limited with energy and metal stocks under pressure as gold prices continued to drop, even as oil rebounded but only just.

In an encouraging sign for the labor market, a report from the U.S. Labor Department on Thursday showed first-time claims for U.S. unemployment benefits dropped to their lowest level in over fourteen years in the week ended January 24.

However, a National Association of Realtors report on Thursday showed a sharp, unexpected drop in U.S. pending home sales in December, partly reflecting fewer homes available for sale and a slight acceleration in prices,.

Meanwhile, eurozone economic confidence strengthened to a 6-month high in January, on marked increases in consumer and retail trade confidence. As well, Germany's unemployment rate declined to a record low at the start of the year, reflecting an improvement in the labor market, expanding the most in three years during 2014.

Investors also mulled over the Federal Reserve's monetary policy announcement yesterday. As was widely expected, the Fed left interest rates unchanged, reiterating its pledge to remain patient in its efforts to normalize monetary policy. The Fed upgraded its assessment of the economy, indicating economic activity to have expanded at a solid pace since its December meeting.

The benchmark S&P/TSX Composite Index closed Thursday at 14,635.96, up 33.08 points or 0.23 percent. The index scaled an intraday high of 14,672.58 and a low of 14,392.55.

On Wednesday, the index closed down 231.00 points or 1.56 percent, at 14,602.88. The index scaled an intraday high of 14,852.68 and a low of 14,599.65.

Crude oil rebounded to end slightly higher on Thursday, after some upbeat economic data from the U.S. and Europe, igniting hopes of growth in demand for oil.

Nonetheless, concerns of oversupply remained after an official weekly oil report from the Energy Information Administration on Wednesday showed crude oil stockpiles in the U.S. to have surged more than expected last week. The U.S. Energy Information Administration said U.S. crude stocks rose by 8.9 million barrels last week to a record 406.73 million barrels.

The Energy Index shed 1.11 percent, with U.S. crude oil futures for March delivery, inching up $0.08 to settle at $44.53 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) plunged 12.12 percent, Canadian Oil Sands Limited (COS.TO) tanked 7.13 percent, Legacy Oil + Gas Inc. (LEG.TO) fell 2.04 percent, Athabasca Oil Corp. (ATH.TO) dived 7.53 percent, Canadian Natural Resources Limited (CNQ.TO) shed 0.88 percent, and Suncor Energy Inc. (SU.TO) slipped 0.82 percent.

Encana Corp. (ECA.TO) slumped 5.13 percent, while Cenovus Energy Inc. (CVE.TO) surrendered 0.83 percent. Crescent Point Energy (CPG.TO) fell 0.76 percent.

The Diversified Metals & Mining Index fell 1.64 percent, as First Quantum Minerals Ltd. (FM.TO) surrendered 6.20 percent and Lundin Mining Corp. (LUN.TO) shed 3.60 percent. Finning International Inc. (FTT.TO) fell 2.69 percent, while HudBay Minerals (HBM.TO) dropped 2.34 percent.

Teck Resources Limited (TCK.B.TO) gained 1.09 percent.

Gold futures plummeted after some upbeat economic data from the U.S. and with eurozone economic confidence rising to a six-month high.

The Global Gold Index dropped 0.63 percent, with gold for April delivery plunging $31.30 or 2.4 percent, to settle at $1,254.60on the New York Mercantile Exchange Thursday.

Among other gold stocks, Yamana Gold Inc. (YRI.TO) fell 1.36 percent, Kinross Gold Corp. (K.TO) slipped 0.24 percent, and Barrick Gold Corp .(ABX.TO) surrendered 1.90 percent.

Goldcorp Inc. (G.TO) slipped 0.94 percent, IAMGOLD (IMG.TO) added 0.61 percent, Eldorado Gold Corp. (ELD.TO) inched up 0.14 percent, and Franco-Nevada Corp. (FNV.TO) shed 1.56 percent.

The Capped Materials Index dropped 0.60 percent, mostly on declining gold stocks, even as Agrium Inc. (AGU.TO) gained 1.90 percent.

Potash Corp. of Saskatchewan Inc. (POT.TO) moved up 0.26 percent, after reporting net income of $0.49 per share in the fourth quarter, sharply higher than $0.26 per share in the prior-year quarter. Analysts expected the company to report earnings of $0.46 per share.

The heavyweight Financial Index added 0.28 percent, as National Bank of Canada (NA.TO) gained 0.73 percent, Royal Bank of Canada (RY.TO) moved up 0.24 percent, Toronto-Dominion Bank (TD.TO) gathered 0.88 percent, and Bank of Nova Scotia (BNS.TO) slipped 0.06 percent.

Bank of Montreal (BMO.TO) dropped 1.33 percent, while the Canadian Imperial Bank of Commerce (CM.TO) inched up 0.01 percent.

Element Financial (EFN.TO) fell 2.38 percent, despite increasing its full year 2015 profit forecast.

The Capped Industrials Index gained 0.78 percent, even as Bombardier Inc. (BBD.B.TO) gained 2.09 percent, and Air Canada (AC.TO) added 3.07 percent.

Canadian National Railway Company (CNR.TO) gained 0.62 percent.

The Information Technology Index added 2.08 percent, as BlackBerry Limited (BB.TO) gained 1.97 percent, Sierra Wireless (SW.TO) gathered 4.32 percent, and Constellation Software (CSU.TO) declined 0.57 percent. Descartes Systems Group Inc. (DSG.TO) gained 2.57 percent.

Exco Technologies (XTC.TO) gained 5.43 percent after reporting first quarter earnings of $0.23 per share, up from $0.16 in the prior year period.

The Healthcare Index gained 0.45 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 1.24 percent and Catamaran Corp. (CCT.TO) dropped 0.17 percent.

The Capped Telecommunication Index advanced 0.97 percent, as Manitoba Telecom Services Inc. (MBT.TO) fell 0.04 percent, and TELUS Corp. (T.TO) gathered 2.49 percent.

Rogers Communications Inc. (RCI.B.TO) gained 0.70 percent, after reporting a fourth quarter earnings of C$0.57 per share, down from C$0.62 per share last year. Adjusted earnings per share was flat with last year at C$0.69.

In economic news from the U.S., the Labor Department said initial jobless claims tumbled to 265,000, a decrease of 43,000 in the week ended January 24, from the previous week's revised level of 308,000, This is the lowest level in over fourteen years. Economists expected claims to dip to 300,000 from the 307,000 originally reported for the previous week. Jobless claims was at its lowest level since hitting 259,000 in the week ended April 15, 2000.

Partly reflecting fewer homes available for sale and a slight acceleration in prices, a report from the National Association of Realtors on Thursday showed an unexpected sharp drop in U.S. pending home sales in December. NAR said its pending home sales index tumbled 3.7 percent to 100.7 in December, while rising 0.6 percent to a slightly downwardly revised 104.6 in November. Economists expected the index to climb by 0.5 percent.

From the eurozone, Germany's consumer prices in January declined for the first time in nearly five-and-a-half years at faster than expected rates, in sync with the forecast for deflation in the euro area, preliminary data from Destatis showed Thursday.

Germany's unemployment rate declined to a record low at the start of the year, reflecting an improvement in the labor market, expanding the most in three years during 2014. The jobless rate dropped to a seasonally adjusted 6.5 percent in January from a revised 6.6 percent in December, the Federal Labor Agency reported Thursday. That was in line with economists' forecast.

The EU measure of inflation, the harmonized index of consumer prices, fell 0.5 percent annually, following a modest 0.1 percent gain in December. Economists had forecast a 0.2 percent decline. This was the first fall in the HICP since October 2009, when prices dropped 0.1 percent, and the biggest since the 0.7 percent slump in July 2009.

Meanwhile, eurozone economic confidence strengthened to a 6-month high in January, on marked increases in consumer and retail trade confidence, survey data from the European Commission showed Thursday. The economic confidence index rose to 101.2, the highest since July, from 100.6 in December. It was forecast to rise to 101.6.

Elsewhere in Europe, U.K. retailers reported robust January sales and anticipate firm growth in February, the latest monthly Distributive Trades survey from the Confederation of British Industry showed Thursday. About 50 percent of retailers said sales volumes were up in January, while 10 percent said they were down, giving a rounded balance of +39 percent. The balance exceeded the consensus estimate of +32 percent.

U.K. house prices continued to increase at a faster rate in December, rising 0.6 percent month-on-month in December after rising 0.1 percent in November, data published by the Land Registry showed Thursday.