TSX Ends Higher On Growth Optimism - Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session Friday, on global growth optimism after some upbeat manufacturing data out of China and the eurozone yesterday, suggesting the world economy was on a recovery path. All sub-indices were in green territory, taking the TSX to a near five-month high. Investors largely ignored the lack of clarity from the U.S. Federal Reserve on plans to cut its quantitative easing program in the near future.

Most Asian markets closed higher after better-than-expected manufacturing reports from China, Europe and the U.S. boosted optimism that the global economy can weather the fallout of the U.S. stimulus withdrawal.

The S&P/TSX Composite Index closed Friday at 12,762.30, up 87.95 points or 0.69 percent. The index touched an intraday high of 12,776.14 and a low of 12,674.35.

The Diversified Metals & Mining Index gained 0.82 percent, with First Quantum Minerals Ltd. (FM.TO) down 1.24 percent. Osisko Mining Corp. (OSK.TO) up 6.36 percent, Teck Resources Limited (TCK.B.TO) up 0.95 percent, and Lundin Mining Corp. (LUN.TO) adding 2.58 percent.

The Information Technology Index added 0.39 percent, with BlackBerry Limited (BB.TO) up 1.02 percent.

The Capped Materials Index jumped 1.62 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) adding 0.45 percent.

The Global Gold Index gained 2.62 percent, with gold futures for December delivery adding $25 or 1.8 percent to close at $1,395.80 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) gained 3.02 percent, while Yamana Gold Inc. (YRI.TO) gathered 3.03 percent. B2Gold Corp. (BTO.TO) added 2.00 percent, while Goldcorp Inc. (G.TO) gained 1.94 percent. IAMGOLD Corp. (IMG.TO) jumped 5.85 percent, while Barrick Gold Corp. (ABX.TO) gained 2.63 percent.

The Energy Index added 0.67 percent, with U.S. crude oil futures for October delivery gaining $1.39 or 1.3 percent to close at $106.42 a barrel Friday on the Nymex.

Among energy stocks, Talisman Energy Inc. (TLM.TO) added 0.62 percent, while Encana Corp. (ECA.TO) dropped 0.76 percent. Suncor Energy Inc.(SU.TO) added 1.92 percent.

The Financial Index moved up 0.58 percent with Bank of Montreal (BMO.TO) gaining 0.65 percent, Royal Bank of Canada (RY.TO) added 1.02 percent, and Toronto-Dominion Bank (TD.TO) up 0.95 percent. Manulife Financial Corp. (MFC.TO) shed 0.23 percent.

The Capped Industrials Index added 0.24 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 0.21 percent.

Food waste recycling company Darling International Inc. (DAR) said it has agreed to buy Rothsay, the rendering and biodiesel business of Canadian food processor Maple Leaf Foods Inc. (MFI.TO), for about C$645 million, or $611.08 million, in cash. Shares of Maple Food jumped 7.84 percent.

In economic news Statistics Canada said the Consumer Price Index (CPI) rose 1.3 percent in the 12 months to July, led by transportation prices, following a 1.2 percent increase in June. Economists expected inflation to come in at 1.4 percent. Meanwhile, the Bank of Canada's core index rose 1.4 percent in the 12 months to July, following a 1.3 percent increase in June. On a monthly basis, the seasonally adjusted core index increased 0.1 percent in July, after rising 0.2 percent in the previous month.

In economic news from the U.S., the Commerce Department said new home sales tumbled 13.4 percent to an annual rate of 394,000 in July from the revised June rate of 455,000. Economists had been expecting new home sales to edge down to an annual rate of 487,000 from the 497,000 originally reported for the previous month.

From the eurozone, Germany confirmed its robust recovery during the second quarter, with domestic spending and investment boosting growth to the fastest pace since the start of 2012. The economy expanded as initially estimated by 0.7 percent in the second quarter from the previous three-month period, detailed results from Destatis showed. This was the biggest increase since the first quarter of 2012.

Meanwhile, the U.K. economy expanded at a faster than initially estimated pace in the second quarter due to an upward revision in construction output, data from the Office for National Statistics showed. Gross domestic product grew 0.7 percent in the second quarter from a quarter ago, up from the prior estimate of 0.6 percent.