TSX Settles Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day loss to end higher on Monday, tracking rising U.S. equity markets with strong buying in energy and materials sector. Investors reacted positively to some upbeat economic news from the U.S. with retail sales rising more than expected in March.

Nonetheless, the gains were capped with concerns over developments in Ukraine. Pro-Russian activists in the east of Ukraine took control of a government building, ignoring the Monday deadline set for pro-Russian factions to leave peacefully or face eviction by security forces. Activists took control of a police station in Horlivka, further challenging the Ukraine government.

Asian markets ended mixed while major European markets along with the U.S. equity markets ended higher. Most European stocks ended higher as eurozone industrial production expanded moderately.

The S&P/TSX Composite Index closed Friday at 14,284.43, up 26.74 points or 0.19 percent. The index scaled an intraday high of 14,357.03 and a low of 14,245.46.

Last week, the benchmark ended lower by about 1 percent, on weak global cues.

Crude oil ended higher on on some positive macroeconomic data from the U.S. with retail sales up more than anticipated, even as the Ukraine crisis escalated. The possibilities of supply disruptions from Russia remained large amid continued unrest in Ukraine, with likelihood of more U.S. sanctions on Russia.

The Energy Index gained 0.37 percent, with U.S. crude oil futures for May delivery, adding $0.31 or 0.3 percent to close at $104.05 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) edged up 0.08 percent, while Encana Corp. (ECA.TO) moved up 0.53 percent. Canadian Natural Resources Ltd. (CNQ.TO) edged up 0.02 percent, while Surge Energy Inc. (SGY.TO) gathered 3.49 percent.

Meanwhile, Talisman Energy Inc. (TLM.TO) slipped 1.48 percent and Husky Energy Inc. (HSE.TO) dropped 0.54 percent.

The Global Gold Index gained 1.18 percent, with gold futures for June delivery, adding $8.50 or 0.6 percent to close at $1,327.50 an ounce Monday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) dropped 0.66 percent, while Barrick Gold Corp. (ABX.TO) gathered 0.88 percent. Goldcorp Inc. (G.TO) added 0.49 percent, while Osisko Mining Corp. (OSK.TO) added 1.19 percent.

The Capped Materials Index gained 0.96 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 1.26 percent.

The heavyweight Financial Index ended flat with the Toronto-Dominion Bank (TD.TO) up 0.27 percent, Bank of Montreal (BMO.TO) up 0.13 percent, and National Bank of Canada (NA.TO) down 0.0.07 percent. Bank of Nova Scotia (BNS.TO) added 0.19 percent, while Manulife Financial Corp. (MFC.TO) dropped 0.84 percent.

The Diversified Metals & Mining Index gained 2.24 percent, with Teck Resources Limited (TCK.B.TO) up 1.30 percent, Lundin Mining Corp. (LUN.TO) up 1.89 percent, First Quantum Minerals Ltd. (FM.TO) up 2.73 percent, and Sherritt International Corp. (S.TO) added 9.30 percent

The Information Technology Index dropped 0.33 percent, with BlackBerry Limited (BB.TO) declining 2.01 percent.

The Capped Industrials Index added 0.67 percent, with Bombardier Inc. (BBD.B.TO) adding 3.00 percent and Air Canada (AC.B) moving up 3.36 percent.

In corporate news, Enbridge Inc. (ENB.TO) slipped 0.80 percent after reportedly losing support from local residents of Kitimat, Canada for its Northern Gateway pipeline project, under which the firm had proposed to link the oil sands to Asian markets.

TransGlobe Energy Corp. (TGL.TO) gained 2.92 percent after the company announced that its March 15-dated Arrangement Agreement with Caracal Energy Inc. (CRCL.L) has been terminated after Caracal received an unsolicited 'Superior' cash offer from Swiss commodities trader and miner Glencore Xstrata Plc (GLEN.L, GLNCY, GLCNF).

Eco Oro Minerals Corp. (EOM.TO) shed 2.94 percent after announcing the appointment of Paul Robertson as Chief Financial Officer of the company with immediate effect.

Denison Mines Corp. (DML.TO) gained 1.21 percent after revealing a definitive arrangement agreement with International Enexco Limited by which Denison will acquire all of the issued and outstanding common shares of IEC through a plan of arrangement.

In economic news from the U.S., retail sales jumped 1.1 percent in March after climbing by an upwardly revised 0.7 percent in February. Economists expected sales to increase by about 0.9 percent compared to the 0.3 percent increase originally reported in the previous month.

Separately, a Commerce Department report showed business inventories in the U.S. rose 0.4 percent in February. Economists expected inventories to increase by about 0.6 percent. Nonetheless, business sales indicated a notable 0.8 percent increase in February after tumbling 1.1 percent in the previous month. Inventories at merchant wholesalers also increased by 0.5 percent in February after climbing 0.8 percent in the previous month.

Meanwhile, eurozone industrial production expanded moderately in February underscoring the fragile nature of recovery in the currency bloc during the first quarter. Industrial production grew 0.2 percent month-on-month in February, reflecting improvement in non-durable consumer goods and intermediate goods sectors, Eurostat said Monday. This was the first rise in production in three months and matched economists' expectations.

On the economic front from Canada, investors will be looking ahead to Tuesday's manufacturing data from Statistics Canada. Among other key events to look ahead are the central bank's rate decision and its views on inflation and economic growth.