TSX Ends Higher On Ukraine Developments -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Wednesday after having scaled an all-time high intraday, as market sentiments improved upon news of progress towards a ceasefire agreement between Ukraine and Russia over the conflict in eastern Ukraine.

As expected the Bank of Canada left its interest rate unchanged at 1.0 percent and said it remains neutral with respect to the next change to the policy rate. The timing and direction will depend on inflation outlook and assessment of risks associated with household imbalances, it added.

A positive reading on factory orders in the U.S. and increased Chinese service sector activity in August amid expectations of fresh monetary stimulus from the European Central Bank also aided sentiment.

There appears to be some confusion to a peace plan for eastern Europe between Ukraine and Russia. President Petro Poroshenko initially said Russian President Vladimir Putin agreed on a permanent ceasefire, but Kiev later retracted the statement.

The retraction came after Moscow said President Putin had not agreed to a ceasefire as it was not directly involved in the conflict. A presidential spokesperson clarified that the two leaders had discussed ways to end the conflict.

The S&P/TSX Composite Index closed Wednesday at 15,657.63, up 38.55 points or 0.25 percent. The index scaled a intraday high of 15,685.13 and a low of 15,519.08.

Crude oil ended sharply higher on Wednesday, rebounding from a more than seven-month low as prospects of a ceasefire in the ongoing crisis between Ukraine and Russia gained strength.

The Energy Index dropped 0.08 percent, although U.S. crude oil futures for October delivery jumped $2.66 or 2.9 percent to close at $95.54 a barrel Tuesday on the Nymex.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO)dived 3.10 percent, Cenovus Energy Inc. (CVE.TO) added 0.35 percent, Enbridge Inc. (ENB.TO) gained 0.45 percent, Suncor Energy Inc. (SU.TO) advanced 1.01 percent, Encana Corp. (ECA.TO) moved up 1.62 percent, and Canadian Natural Resources Limited (CNQ.TO) down 0.24 percent.

The Financial Index added 0.40 percent, with Toronto-Dominion Bank (TD.TO) up 0.73 percent, Canadian Imperial Bank of Commerce (CM.TO) up 0.71 percent, Royal Bank of Canada (RY.TO) up 0.06 percent, Bank of Nova Scotia (BNS.TO) down 0.12 percent, National Bank of Canada (NA.TO) up 0.42 percent, and Bank of Montreal (BMO.TO) up 0.48 percent.

Sun Life Financial Inc. (SLF.TO) added 0.71 percent and Manulife Financial Corp. (MFC:TO) gained 0.86 percent.

Gold futures plunged as the dollar strengthened after some upbeat economic data from the U.S. with manufacturing activity rising better than expected in July, while construction spending also rebounded more than anticipated.

Global Gold Index shed 0.73 percent, although gold for December delivery added $5.3 or 0.4 percent to close at $1,270.30 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.58 percent, B2Gold Corp. (BTO.TO) dropped 1.48 percent, Yamana Gold Inc. (YRI.TO) slipped 2.78 percent, Eldorado Gold Corp. (ELD.TO) declined 0.35 percent, and Kinross Gold Corp. (K.TO) dropped 1.42 percent. Barrick Gold Corp. (ABX.TO) shed 0.97 percent.

The Capped Materials Index dropped 0.30 percent mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.65 percent.

The Diversified Metals & Mining Index declined 1.02 percent, with First Quantum Minerals Ltd. (FM.TO) up 3.58 percent, Lundin Mining Corp. (LUN.TO) up 1.74 percent, Sherritt International Corp. (S.TO) up 2.16 percent, and Teck Resources Limited (TCK.B.TO)down 0.41 percent.

The Capped Industrials Index gained 1.49 percent, with Air Canada (AC.B.TO) down 1.14 percent and Bombardier Inc. (BBD.B.TO) down 0.27 percent.

The Capped Telecommunications Index rose 0.13 percent, with Rogers Communications Inc. (RCI.B.TO) up 0.65 percent and BCE Inc. (BCE.TO) down 0.18 percent.

The Information Technology Index added 1.53 percent, with BlackBerry Limited (BB.TO) gaining 2.45 percent.

The Healthcare Index shed 0.19 percent, after Valeant Pharmaceuticals International Inc. (VRX.TO) dropped 1.27 percent and Catamaran Corporation (CCT.TO) added 0.69 percent.

The Consumer Discretionary Index inched up 0.09 percent, with Tim Hortons Inc. (THI.TO) edging up 0.08 percent.

The Consumer Staples Index jumped 1.96 percent, with Alimentation Couche-Tard (ATD.B) shares surging 6.68 percent after the company reported a 5.7 percent increase in quarterly net income at $269.5 million.

In economic news from the U.S., a report from the Commerce Department showed factory orders to have surged up by 10.5 percent in July, after climbing by an upwardly revised 1.5 percent in June. Economists had been expecting orders to jump by about 10.9 percent compared to the 1.1 percent increase originally reported for the previous month.

On Thursday, the European Central Bank will announce its monetary policy. Hopes about fresh stimulus from the European Central Bank have risen after eurozone retail sales declined by a more than expected 0.4 percent in July.