TSX Ends Higher On Global Cues, Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher Friday, after data showed the Canadian economy to have grown better than expected with investors tracking strength in U.S. and European markets, even as tensions escalated between Ukraine and Russia.

In some upbeat economic news, the Canadian grew 3.1 percent over year in the second quarter. Economists expected a GDP growth of 2.7 percent, following a 1.2 percent increase in the previous quarter.

Canada's exports advanced 17.8 percent due mainly on gains in automobiles, farm and forest products, with household spending increasing 3.8 percent.

In the U.S. economic front, consumer sentiment for August improved unexpectedly in an upward revision from a preliminary reading, a Thomson Reuters and the University of Michigan report showed Friday. Manufacturing activity in the Chicago-area also rebounded in August, as factories reported increases in new orders.

However, U.S. consumer spending fell for the first time in six months, dropping 0.1 percent, while economists expected spending to inch higher. The disappointing data means the U.S. economy is unlikely to match the robust 4.2% second quarter growth rate in the current quarter.

The Ukraine conflict continued to escalate after President Petro Poroshenko on Thursday accused Russia of sending its troops into his country.

Meanwhile, NATO accused Russia of violating Ukraine's sovereignty and providing military support to pro-Russian rebels. NATO Secretary-General Anders Fogh Rasmussen said it was clear Russia had sent its troops into Ukraine.

News reports quoted Ukraine Prime Minister Arseny Yatsenyuk as saying that he would push for his country's membership of NATO and would present a bill to the parliament for approval.

U.S. President Barack Obama blamed Russia for the violence in eastern Ukraine, stating that it was the result of deep Russian involvement and that satellite images supported the claim of involvement. However, Russia continues to deny having any of its troops on Ukrainian territory.

The S&P/TSX Composite Index closed Friday at 15,625.73, up 67.56 points or 0.43 percent. The index scaled a intraday high of 15,632.58 and a low of 15,516.47.

On Thursday, the index ended lower on global cues, with investors tracking weakness in European markets and U.S. markets on escalating tensions in Ukraine, notwithstanding an upbeat second quarter gross domestic product data from the U.S.

Crude oil ended higher on demand growth prospects after some upbeat economic data from the U.S. showed consumer sentiment to have improved unexpectedly in August.

The Energy Index gained 1.07 percent, with U.S. crude oil futures for October delivery jumping $1.41 or 1.5 percent to close at $95.96 a barrel Friday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) up 1.85 percent, Enbridge Inc. (ENB.TO) dropped 0.46 percent, Suncor Energy Inc. (SU.TO) up 0.95 percent, Encana Corp. (ECA.TO) gained 0.97 percent, and Canadian Natural Resources Limited (CNQ.TO) added 1.43 percent. Talisman Energy (TLM.TO) gathered 0.18 percent.

The Financial Index added 0.26 percent, with Toronto-Dominion Bank (TD.TO) slipping 0.35 percent, Canadian Imperial Bank of Commerce (CM.TO) up 0.66 percent, Royal Bank of Canada (RY.TO) up 0.45 percent, Bank of Nova Scotia (BNS.TO) up 0.53 percent, National Bank of Canada (NA.TO) up 0.62 percent, and Bank of Montreal (BMO.TO) up 0.90 percent.

Gold futures ended lower as the dollar strengthened after some upbeat economic data from the U.S. showed consumer sentiment in August to have improved unexpectedly.

Global Gold Index added 1.52 percent, with gold for December delivery shedding $3.00 or 0.2 percent to close at $1,287.40 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, B2Gold Corp. (BTO.TO) gained 0.36 percent, Yamana Gold Inc. (YRI.TO) added 2.09 percent, Eldorado Gold Corp. (ELD.TO) up 1.35 percent, and Kinross Gold Corp. (K.TO) gained 1.42 percent.

Barrick Gold Corp. (ABX.TO) added 1.22 percent, while Goldcorp Inc. (G.TO) moved up 1.36 percent.

The Capped Materials Index gathered 0.86 percent mostly on gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) edging down 0.05 percent.

The Diversified Metals & Mining Index gained 0.30 percent, with First Quantum Minerals Ltd. (FM.TO) adding 0.91 percent, Lundin Mining Corp. (LUN.TO) up 0.31 percent, Sherritt International Corp. (S.TO) gathered 3.39 percent, and Teck Resources Limited (TCK.B.TO) inched up 0.08 percent.

The Capped Industrials Index gained 0.30 percent, with Air Canada (AC.B.TO) dropping 2.53 percent and Bombardier Inc. (BBD.B.TO) shedding 3.17 percent.

The Capped Telecommunications Index dipped 0.02 percent, with Rogers Communications Inc. (RCI.B.TO) down 0.54 percent and BCE Inc. (BCE.TO) up 0.16 percent.

The Information Technology Index shed 0.24 percent, with BlackBerry Limited (BB.TO) dropping 0.54 percent.

The Healthcare Index added 0.13 percent, with Valeant Pharmaceuticals International Inc. (VRX.TO) gaining 0.62 percent.

The Consumer Discretionary Index moved up 0.16 percent, with Tim Hortons Inc. (THI.TO) adding 0.34 percent amid its merger deal with Burger King Worldwide Inc. (BKW) in focus.

In economic news from the U.S., the headline index of the Chicago Purchasing Managers report, an important gauge of manufacturing in the Midwest, jumped to 64.3 in August from 52.6 in July. The PMI number exceeded consensus estimates for a smaller rise to 56.0. The Chicago PMI in July was the largest decline since October 2008.

A U.S. Commerce Department report showed personal spending declined 0.1 percent in July. That followed an increase of 0.4 percent in the previous month. Economists expected consumer spending to rise by 0.2 percent.

Personal income rose for the month, though at a slower pace than economists had projected. The figure climbed 0.2 percent in the period, following an increase of 0.5 percent in June. Analysts anticipated a rise of 0.3 percent.

In other economic news, eurozone inflation slowed as expected in August on falling energy prices giving room for the central bank to support demand and economic recovery without stoking inflation and help the region create more jobs. The unemployment rate remained unchanged at an elevated level in July. Nonetheless, it was at the lowest since September 2012.

Inflation eased to 0.3 percent from 0.4 percent in July, flash report from Eurostat revealed Friday. The rate was in line with economists' expectations. It was the lowest inflation rate after prices started rising since November 2009.

In other the economic news, a report from GfK showed consumer confidence in the U.K. to have rebounded to 1 in August, exceeding expectations for a score of -1.

Final estimates from Eurostat showed annual inflation in the eurozone to have eased to 0.3 percent in August from 0.4 percent in July, in line with estimates. Another report showed that the unemployment rate in the euro area remained unchanged at a 21-month low of 11.5 percent in July.