TSX Settles Modestly Higher On Ukraine, Mixed Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended modestly higher Wednesday, on some soft global economic reports with some disappointing private sector job data from the U.S. showed employment to have risen less than expected in February. Investors also weighed the renewed saber-rattling between Moscow and the West, with Russian officials threatening to retaliate against any possible sanctions by seizing U.S. and EU assets in Russia.

In some tepid economic news, private sector employment in the U.S. rose less than expected in February, with bad winter weather weighing on payrolls, a report from ADP showed Wednesday. Meanwhile, activity in the U.S. service sector grew at a slower rate in February, with some respondents attributing it to the rough winter weather, a survey by the Institute for Supply Management showed.

After President Vladimir Putin pulled back thousands of troops from the Crimea border, Russia is in the process of drafting laws to seize U.S. and European Union assets in the event the West prefer to slap sanctions and freeze its assets. Yesterday, Kremlin stated it has no plans to annex the strategically important Crimea region, although its troops continue to control the Russian-speaking Crimea region of Ukraine.

The S&P/TSX Composite Index closed Wednesday at 14,304.17, up 14.31 points or 0.10 percent. The index scaled an intraday high of 14,309.20 and a low of 14,260.97.

The Global Gold Index gained 0.81 percent, with gold futures for April delivery, the most actively traded contract, adding $2.40 or 0.2 percent to close at $1,334.30 an ounce Wednesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) shed 2.10 percent, while Goldcorp Inc. (G.TO) added 1.03 percent. Barrick Gold Corp. (ABX.TO) slipped 0.62 percent, while Osisko Mining Corp. (OSK.TO) added 2.43 percent.

Barrick Gold's Chief Executive Officer Jamie Sokalsky told Bloomberg the company may sell more assets to improve profitability, while indicating gold prices could rise toward $2,000 an ounce within two or three years.

The Capped Materials Index added 0.95 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) jumping 3.39 percent.

The Energy Index shed 0.60 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, plummeting $1.88 or 1.8 percent to close at $101.45 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) slipped 0.56 percent, while Encana Corp. (ECA.TO, ECA) dipped 0.41 percent. Cenovus Energy Inc. (CVE.TO) dropped 0.61 percent, while Suncor Energy Inc. (SU.TO) moved down 1.06 percent. Enbridge Inc. (ENB.TO) surrendered 0.43 percent.

The heavyweight Financial Index added 0.51 percent Bank of Montreal (BMO.TO) up 0.14 percent, the National Bank (NA.TO) up 0.02 percent, and Royal Bank of Canada (RY.TO) moving up 0.70 percent. The Toronto-Dominion Bank (TD.TO) added 0.58 percent, while Bank of Nova Scotia (BNS.TO) gained 0.95 percent.

The Diversified Metals & Mining Index moved up 0.83 percent, with Teck Resources Limited (TCK.B.TO) down 0.49 percent, Lundin Mining Corp. (LUN.TO) up 1.15 percent, and First Quantum Minerals (FM.TO) down 0.66 percent.

The Information Technology Index dropped 0.38 percent, with BlackBerry Limited (BB.TO) slipping 2.62 percent.

The Capped Industrials Index slipped 0.13 percent, with Bombardier Inc. (BBD.B.TO) surrendering 0.56 percent. The smartphone maker acknowledged service interruptions in Canada and Asia yesterday, with WSJ reporting many customers in Southeast Asia still experiencing spotty connections.

Toy maker MEGA Brands Inc. (MB.TO) ended flat at $17.72 per share, after reporting a fourth-quarter profit of $0.04 per share, up from $0.01 per share last year. Revenues were down 21 percent. The company was recently acquired by Mattel.

TransCanada Corp. (TRP.TO) gained 0.78 percent after indicating having taken an initial step toward obtaining regulatory approval for its proposed $12-billion Energy East oil pipeline.

Canadian Solar Inc. (CSIQ) on Wednesday reported a turnaround to profit in the fourth quarter, helped by strong revenue growth. However, the company warned bad weather could hurt first quarter results.

In economic news, the U.S. private sector added 139,000 jobs in February compared to estimates for an increase of about 155,000 jobs. The job growth in the previous month was downwardly revised, with employment rising by 127,000 jobs in January compared to the addition of 175,000 jobs originally reported, the slowest since August of 2012. The private sector employers added 205,000 jobs in February 2013.

Meanwhile, the ISM's non-manufacturing index in the U.S. dropped to 51.6 in February from 54.0 in January, although a reading above 50 indicates continued growth. Economists expected the index at 53.5. The index is at its lowest level since February 2010.

In Europe, the U.K. service sector continued to expand for a 14th month in February, supported by another marked increase in new business, data from Markit Economics showed Wednesday. The headline Chartered Institute of Purchasing & Supply/Markit Business Activity Index fell marginally to 58.2 in February from 58.3 in January. That was the lowest reading since last June, but indicative of a sharp rise in activity on a monthly basis. The score was forecast at 58.

The Chinese government set 7.5 percent growth target for this year, unchanged from last year. The government vowed to build on domestic spending, while declaring a war against pollution. At the annual session of National People's Congress, the government said it plans to focus on consumption rather than investment to create a balanced economy.