TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session on Tuesday, tracking rising global equity markets in the aftermath of the deal reached between Greece and its creditors for a new bailout.

Most of the Canadian sectors ended in the green led by gains in energy, but with losses in financial and metal and mining stocks. Investors cheered a deal between Iran and the West that will limit Tehran's nuclear ambitions and potentially free up Iranian oil after years of sanctions.

Markets in Europe ended largely in positive territory, investors more cautious ahead of the upcoming Greek deadline. Greek Prime Minister Alexis Tsipras has to convince his party and the Greek Parliament to back tough austerity measures by Wednesday's EU-imposed deadline or face bankruptcy.

Markets in the United States ended in the green after overcoming some initial weakness after U.S. retail sales and import and export prices came in weaker than anticipated earlier today.

Investors were also focused on the upcoming Bank of Canada meet on interest rates. Analysts anticipate a cut in rates for the second time this year as concerns of a contracting economy looms.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,599.40, up 66.18 points or 0.46 percent. The index scaled an intraday high of 14,613.45 and a low of 14,453.68.

On Monday, the index closed higher by 122.15 points or 0.85 percent, at 14,533.22. The index scaled an intraday high of 14,566.02 and a low of 14,453.26.

Crude oil futures ended higher on Tuesday, ahead of the official weekly oil report from the Energy Information Administration on Wednesday and the American Petroleum Institute report due later today. The dip comes despite concerns of a supply glut after Iran and the West reached an agreement on limiting Tehran's nuclear program.

The Energy Index jumped 1.88 percent, with U.S. crude oil futures for August delivery jumping $0.84 or 1.6 percent, to settle at $53.04 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.95 percent, while Canadian Natural Resources Limited (CNQ.TO) moved up 0.60 percent. Crescent Point Energy Corp. (CPG.TO) gained 2.37 percent, while Encana Corp. (ECA.TO) jumped 4.26 percent.

Pacific Rubiales Energy Corp. (PRE.TO) surged 7.77 percent.

Cenovus Energy Inc. (CVE.TO) added 2.03 percent, Canadian Oil Sands (COS.TO) gathered 1.36 percent, and Enbridge (ENB.TO) added 0.95 percent.

Gold futures ended lower after some disappointing economic data from the U.S. with retail sales for June dropping unexpectedly.

The Gold Index shed 0.43 percent, with gold for August delivery dropping $1.90 or 0.2 percent, to settle at $1,153.50 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.77 percent, Barrick Gold Corp. (ABX.TO) slipped 0.87 percent, and Yamana Gold Inc. (YRI.TO) added 0.30 percent. IAMGOLD Corp. (IMG.TO) fell 3.39 percent.

The Capped Materials Index inched up 0.07 percent, as Agrium Inc. (AGU.TO) gained 0.96 percent and Agnico Eagle Mines Limited (AEM.TO) added 1.63 percent. Potash Corp. of Saskatchewan Inc. (POT.TO) moved up 1.22 percent.

The Diversified Metals & Mining Index dropped 0.74 percent, as First Quantum Minerals Ltd. (FM.TO) fell 2.50 percent, and HudBay Minerals (HBM.TO) climbed 2.34 percent. Sherritt International (S.TO) dropped 0.84 percent, while Teck Resources Limited (TCK-B.TO) fell 0.66 percent. Lundin Mining Corp. (LUN.TO) gained 0.19 percent.

The heavyweight Financial Index edged down 0.06 percent, as National Bank of Canada (NA.TO) fell 0.43 percent, and Bank of Montreal (BMO.TO) dropped 0.13 percent.

Toronto-Dominion Bank (TD.TO) fell 0.42 percent, while Canadian Imperial Bank of Commerce (CM.TO) dipped 0.21 percent.

Royal Bank of Canada (RY.TO) dipped 0.03 percent, after agreeing to sell its Swiss private banking business to SYZ Group.

Bank of Nova Scotia (BNS.TO) declined 0.19 percent, after agreeing to acquire Citigroup's retail and commercial banking businesses in Panama and Costa Rica.

The Capped Health Care Index added 1.98 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 0.61 percent, Concordia Healthcare Corp. (CXR.TO) jumped 6.97 percent, and Catamaran (CCT.TO) inched up 0.05 percent.

The Capped Industrials Index gained 0.24 percent, as Bombardier Inc. (BBD-A.TO) dropped 1.49 percent and Finning International Inc. (FTT.TO) moved up 0.04 percent. Canadian National Railway (CNR.TO) moved up 0.84 percent, while Air Canada (AC.TO) gained 0.53percent.

Canadian Pacific Railway (CP.TO) dropped 0.31 percent, after its challenge to a settlement for victims of the Lac-Megantic crude-by-rail disaster was rejected by a Quebec court.

The Capped Information Technology Index moved up 1.25 percent, as BlackBerry Limited (BB.TO) gained 3.05 percent and Constellation Software (CSU.TO) moved up 1.16 percent. Descartes Systems Group (DSG.TO) gained 0.84 percent, while Avigilon (AVO.TO) added 2.94 percent.

The Capped Telecommunication Index gained 0.71 percent, as Rogers Communication (RCI-B.TO) added 0.77 percent, TELUS Corp. (T.TO) added 0.41 percent, BCE Inc. (BCE.TO) moved up 0.35 percent, and Manitoba Telecom Services (MBT.TO) gained 1.26 percent.

Theratechnologies (TH.TO) rose 2.44 percent after reporting a second quarter-profit of C$0.01 per share. Also, Mexico's health agency has approved the 2mg/vial presentation of tesamorelin for the treatment of lipodystrophy.

Sirius XM Canada (XSR.TO) surged 6.31 percent, after the company's third quarter revenues increased by 9.4 percent to $83.1 million, from a year ago.

On the economic front, a Commerce Department report on Tuesday showed U.S. retail sales to have unexpectedly pulled back in June, after reporting a sharp jump in sales in the previous month. Retail sales fell by 0.3 percent in June compared to economist estimates for an increase of about 0.3 percent.

Import prices in the U.S. unexpectedly declined modestly in June, a report from the Labor Department showed Tuesday, with a drop in non-fuel prices more than offsetting an increase in fuel prices. Import prices edged down 0.1 percent in June following a 1.2 percent increase in May. Economists expected prices to inch up by 0.1 percent.

The Labor Department also said export prices fell 0.2 in June after climbing 0.6 percent in the previous month. Export prices had been expected to rise by 0.2 percent.

Business inventories in the U.S. rose in line with estimates in May, a report from the Commerce Department showed Tuesday. Business inventories rose 0.3 percent in May after climbing 0.4 percent in April, in line with the consensus estimate.

Eurozone industrial production declined unexpectedly in May, largely due to a fall in energy output, data from Eurostat showed Tuesday. Industrial production was down 0.4 percent month-on-month in May after staying flat in April. It was forecast to rise 0.2 percent in May.

German investor confidence declined less-than-expected in July as the crisis in China and Greece failed to result in much impact, survey results showed Tuesday. The Indicator of Economic Sentiment for Germany dropped to 29.7 from 31.5 in the previous month, the Mannheim-based Centre for European Economic Research or ZEW said. Economists had forecast a score of 29. The latest reading is well above its long-term average of 24.9 points.

Germany's inflation slowed as initially estimated in June due largely to falling energy prices, final data from Destatis showed Tuesday. Inflation eased to 0.3 percent in June from 0.7 percent in May. The inflation rate as measured by the consumer price index decreased after four months of uninterrupted increase.

U.K. inflation returned to zero in June, data published by the Office for National Statistics showed Tuesday. Consumer prices remained flat on a yearly basis in June as expected by economists after rising 0.1 percent in May.

House price inflation in the United Kingdom accelerated in May from a 16-month low in the previous month, figures from the Office for National Statistics showed Tuesday. Average house prices climbed 5.7 percent year-over-year in May, slightly faster than April's 5.5 percent increase. In March, prices had risen 9.6 percent.

The total value of like-for-like sales in the United Kingdom was up 1.8 percent on year in June, the British Retail Consortium said on Tuesday. That topped forecasts for an increase of 0.5 percent following the flat reading in May.