TSX Ends Higher On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks settled higher Tuesday, tracking rising global equity markets amid a partial shutdown of the U.S. government following disagreement on its budget and debt. Investors largely shrugged off the shutdown, while mulling its impact on the economy and markets.

After Republicans and Democrats were unable to reach an agreement on a new spending bill, the U.S. government was forced into a partial shutdown at midnight on Monday. The root contention was President Barack Obama's Affordable Care Act, which Democrats say will provide health insurance at reasonable rates, but Republicans believe it unconstitutional and will hurt business.

The Republican-controlled House passed a bill that would have kept the government running but delayed the implementation of Obamacare. However, the Democratic controlled Senate rejected the legislation, resulting in the first government shutdown in seventeen years.

The S&P/TSX Composite Index closed Tuesday at 12,847.44, up 60.25 points or 0.47 percent. The index touched an intraday high of 12,866.94 and a low of 12,753.41.

The Diversified Metals & Mining Index dropped 1.40 percent, with Teck Resources Limited (TCK.B.TO) down 0.98 percent and Lundin Mining Corp. (LUN.TO) up 0.66 percent. Osisko Mining Corp. (OSK.TO) dropped 4.03 percent.

The Capped Materials Index shed 1.42 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) adding 2.02 percent.

Gold prices plummeted over three percent to end at a near two month low Tuesday, on a sell-off as investors kept a close watch on the implications of the partial shutdown of the U.S. government.

The Global Gold Index shed 2.61 percent, with gold futures for December delivery plunging $40.90 or 3.1 percent to close at $1,286.10 an ounce Tuesday on the Nymex.

Yamana Gold Inc. (YRI.TO) down 2.89 percent, while IAMGOLD Corp. (IMG) shed 3.05 percent. B2Gold Corp. (BTO.TO) dropped 3.89 percent, while Goldcorp Inc. (G.TO) added 2.76 percent. Kinross Gold Corp. (K.TO) slipped 2.12 percent, while Eldorado Gold Corp. (ELD.TO) dropped 2.16 percent. Barrick Gold Corp. (ABX.TO) shed 3.02 percent.

U.S. crude oil pared much of the losses but still ended lower for a third straight session Tuesday, as investors mulled over the impact of the partial shutdown of the U.S. Government on oil demand.

The Energy Index gained 0.90 percent, with U.S. crude oil futures for November delivery dropping $0.29 or 0.3 percent to close at $102.04 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 1.39 percent, Talisman Energy Inc. (TLM.TO) jumped 4.91 percent, and Suncor Energy Inc.(SU.TO) was up 0.87 percent. Enbridge Inc. (ENB.TO) slipped 1.35 percent, while Imperial Oil Limited (IMO.TO) edged down 0.29 percent. The Financial Index gained 0.61 percent with Bank of Montreal (BMO.TO) up 69.18 percent and Manulife Financial Corp. (MFC.TO) rose 1.41 percent. The Bank of Nova Scotia (BNS.TO) rose 0.76 percent, while Toronto-Dominion Bank (TD.TO) was down 0.47 percent. Royal Bank of Canada (RY.TO) gathered 10.8 percent, while National Bank of Canada (NA.TO) gained 0.73 percent.

The Information Technology Index moved up 0.93 percent, with smartphone maker BlackBerry Limited (BB.TO) up 1.11 percent.

The Capped Industrials Index added 1.49 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 0.63 percent.

In economic news from the U.S., the Institute for Supply Management said its purchasing managers index edged up to 56.2 in September from 55.7 in August, with a reading above 50 indicating growth in the manufacturing sector. Economists had been expecting the index to dip to 55.0.

From the eurozone, Germany's unemployment rate rose to seasonally adjusted 6.9 percent in September from 6.8 percent in August, a Federal Labor Agency report showed. The rate was expected to remain unchanged at 6.8 percent. At the same time, the number of unemployed people increased sharply by 25,000, while it was forecast to drop by 5,000. In August, unemployment rose by 9,000.

Eurozone manufacturing sector expanded at a slower pace in September, final results of a survey by Markit Economics confirmed. The headline purchasing managers' index edged down to 51.1 in September from August's 26-month high of 51.4. The outcome matched the flash estimate released last month.

Meanwhile, the eurozone jobless rate remained unchanged at seasonally adjusted 12 percent in August, Eurostat reported. Economists had forecast the unemployment rate to stay at July's originally estimated 12.1 percent.