TSX Ends Higher On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a sixth straight session on Tuesday, tracking rising global equity markets, led by mining and gold stocks after some soft jobs data out of the U.S. strengthened expectations that the U.S. Federal Reserve will continue its quantitative easing program unchanged until March next year.

Employment in the U.S. increased much less than expected in September, according to a Labor Department report Tuesday. Despite the weaker than expected job growth, unemployment rate in September dropped to 7.2 percent. The report was delayed by more than two weeks due to the partial shutdown of the U.S. government.

The S&P/TSX Composite Index closed Tuesday at 13,248.06, up 61.53 points or 0.47 percent. The index touched an intraday high of 13,291.17 and a low of 13,186.53. The Index added nearly 300 points or over 2 percent in the past five sessions.

The Diversified Metals & Mining Index surged 3.98 percent, with First Quantum Minerals Ltd. (FM.TO) up 1.31 percent, Teck Resources Limited (TCK.B.TO) up 4.10 percent, and Lundin Mining Corp. (LUN.TO) surging 6.61 percent.

The Capped Materials Index jumped 2.67 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) shedding 1.54 percent.

Gold futures surged to end at a more than one month high Tuesday, as the dollar trended lower against some major currencies after some soft jobs data out of the U.S. strengthened investor expectations the Federal Reserve would likely continue to maintain its quantitative easing program, with no cuts foreseen in the near future.

The Global Gold Index soared 4.58 percent, with gold futures for December delivery, the most actively traded contract, jumping $26.80 or 2.0 percent to close at $1,342.60 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) jumped 4.61 percent, while Barrick Gold Corp. (ABX.TO) surged 4.81 percent. Goldcorp Inc. (G.TO) added 4.90 percent, while Kinross Gold Corp. (K.TO) added 3.27 percent. Eldorado Gold Corp. (ELD.TO) gathered 3.38 percent.

Crude oil plummeted to end at a near four-month low Tuesday, as demand growth concerns grew after some soft jobs data out of the U.S. Oil prices were under pressure on the downbeat data with the dollar weakening against some major currencies. Prices were already under strain after a delayed official weekly report from the Energy Information Administration yesterday showed crude oil stockpiles in the U.S. to have increased a week ago.

The Energy Index shed 0.48 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, plummeting $1.38 or 1.4 percent to close at $98.30 a barrel Tuesday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) shed 0.90 percent, while Enbridge Inc.(ENB.TO) edged up 0.55 percent. Imperial Oil Limited (IMO.TO) dropped 0.43 percent, while Talisman Energy Inc. (TLM.TO) added 0.80 percent. Encana Corp. (ECA.TO) gained 2.29 percent.

The Financial Index added 0.29 percent with Bank of Montreal (BMO.TO) adding 0.67 percent, while Manulife Financial Corp. (MFC.TO) moved up 0.11 percent. The Bank of Nova Scotia (BNS.TO) gained 0.87 percent, while Toronto-Dominion Bank (TD.TO) added 0.33 percent. National Bank of Canada (NA.TO) gained 0.99 percent, while Royal Bank of Canada (RY.TO) dropped 1.07 percent.

The Information Technology Index dropped 0.27 percent, with smartphone maker BlackBerry Limited (BB.TO) shedding 0.47 percent.

The Capped Industrials Index moved up 0.29 percent, with Air Canada (AC.B.TO) up 0.57 percent and Bombardier Inc. (BBD.A.TO, BBD.B.TO) also gaining 0.57 percent.

In economic news Statistics Canada said retail sales continued their upward trend in August, adding 0.2 percent to $40.3 billion, with higher sales at food and beverage stores partially offsetting weaker sales at motor vehicle and parts dealers and gasoline stations. Gains were reported in 6 of 11 sub-sectors, representing 56 percent of total retail trade.

In economic news from the U.S., the Labor Department said said non-farm payroll employment increased by 148,000 jobs in September compared to economist estimates for an increase of about 180,000 jobs. Despite the weaker than expected job growth in September, the unemployment rate dipped to 7.2 percent from 7.3 percent in August.

Construction spending in the U.S. rose more than expected in August, a Commerce Department report showed Tuesday. Construction spending rose 0.6 percent to a seasonally adjusted annual rate of $915.1 billion in August from the revised July estimate of $909.4 billion. Economists expected spending to increase by about 0.4 percent.

Elsewhere, the U.K. budget deficit narrowed to GBP 11.1 billion in September from GBP 12.1 billion in the corresponding period last year, the Office for National Statistics reported. Public sector net borrowing, excluding financial interventions, also came in below consensus of GBP 11.3 billion.

Switzerland's trade surplus beat expectations in September, latest data from the Federal Customs Administrations showed. The trade surplus for September was CHF 2.5 billion compared with an expected CHF 2 billion surplus. In the July-September period, the trade surplus was CHF 6.9 billion.