TSX Ends A Tad Higher As Gold Stocks Jump -- Canadian Commentary

(RTTNews) - Canadian stocks ended a tad higher on Tuesday, as declines in energy and industrial sectors were offset by gains in gold stocks, with investors focused on developments in the Greek financial crisis as talks continued on bailout aid to the beleaguered country.

Earlier in the session, markets struggled to find direction, turning to the downside after reports said a U.S. cargo vessel was seized by Iran and escorted to the port of Bandar Abbas. The market subsequently stabilized after American officials denied the report.

European markets were weak in early trade, due to some weaker than anticipated British GDP report and some mixed earnings reports. Nevertheless, markets recovered to end higher.

Markets in the United States were also under pressure as investors weighed a batch of weak earnings reports from companies like Whirlpool and Ford Motor. The unexpected drop in U.S. consumer confidence also impacted investor sentiment.

Meanwhile, Greece continued its talks with creditors to resolve outstanding differences for urgently unlocking the financial aid, without which the beleaguered nation could go bankrupt. The fallout of such a scenario could be catastrophic for world markets.

Investors remained cautious ahead of Wednesday's announcement from the Federal Reserve, after its two-day policy meet concluding tomorrow. The Fed is widely expected to leave interest rates unchanged at this week's meeting, but traders will be paying close attention to comments regarding a rate hike at the June meeting.

Some mixed economic news from the U.S. kept investors on the sidelines, with growth in home prices in major U.S. metropolitan areas accelerating more than expected in February, while a Conference Board report showed the consumer confidence index to have unexpectedly pulled back in of April.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,346.07, up 1.99 points or 0.01 percent. The index scaled an intraday high of 15,348.34 and a low of 15,278.69.

On Monday, the index ended at 15,344.08, down 64.25 points or 0.42 percent, having scaled an intraday high of 15,456.35 and a low of 15,317.58.

Gold futures ended at a three-week high as the dollar continued to weaken and ahead of the U.S. Federal Reserve's two-day monetary policy meet, with investors focused on the Fed providing some clarity to the imminent interest rate hike.

The Gold Index jumped 3.09 percent, with gold for June delivery gaining $10.70 or 0.9 percent to settle at $1,213.90 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Barrick Gold Corp. (ABX.TO) gained 3.03 percent, Yamana Gold Inc. (YRI.TO) added 2.97 percent, Agnico Eagle Mines Limited (AEM.TO) jumped 5.93 percent, and IAMGOLD Corp. (IMG.TO) moved up 2.60 percent.

Goldcorp Inc. (G.TO) added 2.80 percent, while Eldorado Gold Corp. (ELD.TO) jumped 4.33 percent. Kinross Gold Corp (K.TO) gained 2.52 percent, B2Gold (BTO.TO) advanced 3.70 percent, and Royal Gold (RGL.TO) gathered 4.27 percent

Crude oil ended higher on a weak dollar and ahead of the official weekly oil report from the U.S. Energy Information Administration and the American Petroleum Institute. However, the U.S. Federal Reserve's take on interest rate hike and concerns over fighting in Yemen checked crude oil's uptick, even as Saudi Arabia stubbornly vowed to keep pumping despite mounting global inventories.

The Energy Index shed 0.80 percent, with U.S. crude oil futures for June delivery, the most actively traded contract, inching up $0.07 or 0.1 percent, to settle at $57.06 a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Suncor Energy Inc. (SU.TO) shed 0.35 percent, Canadian Oil Sands Limited (COS.TO) fell 3.02 percent, and Crescent Point Energy Corp. (CPG.TO) slipped 1.56 percent.

Pacific Rubiales Energy Corp. (PRE.TO) shed 0.83 percent, Canadian Natural Resources Limited (CNQ.TO) declined 0.96 percent, and Cenovus Energy Inc. (CVE.TO) dropped 0.43 percent. Surge Energy Inc. (SGY.TO) fell 1.86 percent, while Baytex Energy Corp. (BTE.TO) slipped 0.57 percent.

The Capped Materials Index gained 1.42 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) dropping 0.25 percent and Agrium Inc. (AGU.TO) gaining 0.53 percent.

Franco-Nevada Corp. (FNV.TO) gained 2.11 percent, while Silver Wheaton (SLW.TO) moved up 2.41 percent.

The Diversified Metals & Mining Index inched up 0.02 percent, after First Quantum Minerals Ltd. (FM.TO) fell 1.34 percent, Teck Resources Limited (TCK.B.TO) added 1.47 percent, Lundin Mining Corp. (LUN.TO) moved up 0.18 percent, and Capstone Mining Corp. (CS.TO) jumped 7.43 percent.

Sherritt International Corp. (S.TO) added 0.43 percent, Denison Mines Corp. (DML.TO) fell 0.88 percent, and HudBay Minerals Inc. (HBM.TO) shed 0.52 percent.

The heavyweight Financial Index added 0.25 percent, as Bank of Nova Scotia (BNS.TO) gained 0.61 percent, while Bank of Montreal (BMO.TO) moved up 0.25 percent. Royal Bank of Canada (RY.TO) added 0.27 percent, while Canadian Imperial Bank of Commerce (CM.TO) gathered 0.59 percent.

However, Toronto-Dominion Bank (TD.TO) dipped 0.09 percent and National Bank of Canada (NA.TO) shed 0.47 percent.

The Capped Health Care Index slipped 0.35 percent with Concordia Healthcare Corp. (CXR.TO) shedding 4.55 percent and Valeant Pharmaceuticals International, Inc. (VRX.TO) gaining 1.11 percent. Catamaran Corp. (CCT.TO) dipped 0.35 percent, while Extendicare Inc. (EXE.TO) added 0.13 percent.

The Capped Industrials Index dropped 0.38 percent, as Canadian Pacific Railway Limited (CP.TO) declined 1.87 percent, and Canadian National Railway Company (CNR.TO) slipped 0.79 percent.

Air Canada fell 0.08 percent, Finning International Inc. (FTT.TO) added 0.33 percent, and AutoCanada (ACQ.TO) gained 0.05 percent. Bombardier Inc. (BBD.B.TO) ended flat at C$2.42 a share.

The Information Technology Index fell 0.31 percent, as BlackBerry Limited (BB.TO) added 1.05 percent, Constellation Software Inc. (CSU.TO) gained 0.38 percent, Descartes Systems Group Inc. (DSG.TO) shed 2.08 percent, and Sierra Wireless, Inc. (SW.TO) surrendered 0.99 percent.

The Capped Telecommunication Index slipped 0.09 percent, with Rogers Communications Inc. (RCI.B.TO) dipping 0.09 percent and BCE Inc. (BCE.TO) shedding 0.37 percent. Manitoba Telecom Services Inc. (MBT.TO) dropped 0.38 percent.

In economic news, annual growth in home prices in major U.S. metropolitan areas accelerated more than expected in February, a report from Standard & Poor's showed Tuesday. The S&P/Case-Shiller 20-City Composite Home Price Index jumped 5.0 percent year-over-year in February compared to a downwardly revised 4.5 percent increase in January. Economists expected the growth to accelerate to 4.7 percent from the 4.6 percent originally reported for the previous month.

A Conference Board report on Tuesday showed its U.S. consumer confidence index unexpectedly pulled back sharply in April, after reporting a significant rebound in the previous month. The U.S. consumer confidence index tumbled to 95.2 in April from an upwardly revised 101.4 in March. Economists expected the index to climb to a reading of 102.5.

The British economy expanded at the slowest pace since 2012, reflecting contraction in construction and industrial activity, preliminary estimate published by the Office for National Statistics revealed Tuesday. Gross domestic product expanded 0.3 percent sequentially during the January to March period, the slowest growth since the fourth quarter of 2012. It was forecast to slow marginally to 0.5 percent from the 0.6 percent logged in the fourth quarter of 2014.

Loans approved for house purchase in the U.K. rose to the highest level in six months during March, data from the British Bankers' Association showed Tuesday. The number of loans approved for house purchase climbed to 38,751 from 37,453 in March. Economists had expected an increase in the figure to 38,700.

French consumer confidence strengthened to its highest level since January 2010, survey data from the statistical office Insee revealed Tuesday. The consumer confidence index rose to 94 in April, the highest level since January 2010, from 93 in March. The reading was in line with expectations.

French unemployment rose to a record high in March, data released by the labor ministry revealed Monday. The number of unemployed increased 15,400 or 0.4 percent from February to 3.51 million in March.

The total value of retail sales in Japan tumbled 9.7 percent on year in March, the Ministry of Economy, Trade and Industry said on Tuesday - coming in at 12.396 trillion yen. That missed forecast for a decline of 7.5 percent following the 1.7 percent contraction in February.