TSX Settles Higher As Ukraine Fears Recede -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Tuesday, tracking rising global equity markets on news that Russian President Vladimir Putin has recalled thousands of troops from near the Ukraine border. Despite Russian forces continuing to occupy Ukraine's Russian-speaking Crimea area, Putin says Kremlin has no plans to annex the strategically important region.

In his first remarks since the Ukraine crisis started, Russian President Vladimir Putin condemned the the ouster of Viktor Yanukovych, terming it as a constitutional coup. Putin also stressed Kremlin's right to exercise force in Ukraine in the future to safeguard the Russian-speaking population.

Global markets reacted positively to the Russian president's comments, raising hopes of a peaceful end to the standoff with its southern neighbors. Nonetheless, weakness in energy and gold shares capped gains in the Canadian market, as crude and precious metals prices turned sharply lower on the developments in Ukraine.

The S&P/TSX Composite Index closed Tuesday at 14,289.86, up 77.12 points or 0.54 percent. The index scaled an intraday high of 14,328.48 and a low of 14,212.74.

The Global Gold Index shed 0.55 percent, with gold futures for April delivery, the most actively traded contract, dropping $12.40 or 0.9 percent to close at $1,337.90 an ounce Tuesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) shed 0.70 percent, while Goldcorp Inc. (G.TO) surrendered 0.96 percent. Barrick Gold Corp. (ABX.TO) dropped 0.44 percent, while Osisko Mining Corp. (OSK.TO) lost 1.07 percent.

The Capped Materials Index added 0.13 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) edging down 0.03 percent.

The Energy Index added 0.28 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, plunging $1.59 or 1.5 percent to close at $103.33 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) gained 0.24 percent, while Encana Corp. (ECA.TO, ECA) added 1.17 percent. Cenovus Energy Inc. (CVE.TO) dropped 0.31 percent, while Suncor Energy Inc. (SU.TO) gained 0.19 percent.

Enbridge Inc. (ENB.TO) jumped 4.54 percent after announcing a spend of C$7 billion to improve its pipeline system running between Edmonton, Alberta and Superior, Wisconsin.

The heavyweight Financial Index added 0.38 percent Bank of Montreal (BMO.TO) added 0.37 percent, the National Bank (NA.TO) down 0.11 percent, and Royal Bank of Canada (RY.TO) edging down 0.08 percent.

In corporate news, Bank of Nova Scotia (BNS.TO) added 0.14 percent, after joining Canada's other big banks in reporting a better-than-expected first-quarter profit of C$1.34 per share. On average, 12 analysts polled by Thomson Reuters expected earnings per share of C$1.33 for the quarter.

The Diversified Metals & Mining Index jumped 2.89 percent, with Teck Resources Limited (TCK.B.TO) adding 1.79 percent, while First Quantum Minerals (FM.TO) gathered 1.81 percent.

The Information Technology Index added 0.84 percent, although BlackBerry Limited (BB.TO) slipped 0.26 percent.

The Capped Industrials Index dropped 0.66 percent, with Bombardier Inc. (BBD.B.TO) dipping 0.28 percent.

Magna International Inc. (MG.TO) gained 2.85 percent and will be in focus after CIBC raised its target price to $110 from $100. Magna raised its dividend and reported strong quarterly earnings on Monday.

In economic news, inflation in the OECD area rose slightly in January, the Organisation for Economic Co-operation and Development said Tuesday. Consumer prices rose 1.7 percent year-on-year, following a 1.6 percent increase in December. Inflation was largely led by energy prices, which rose 2.1 percent annually versus 1.7 percent in December. Food price inflation, meanwhile, slowed to 1.4 percent from 1.5 percent. Excluding food and energy, core inflation in the OECD area held steady at 1.6 percent in January.

Month-on-month, OECD area prices edged up 0.1 percent in January. In the G20 area, inflation was 2.6 percent in January, which was slower than 2.9 percent in December. In the G7, inflation was 1.4 percent, unchanged from December. Within the G7, the U.K. logged the highest inflation rate of 1.9 percent for January.