TSX Ends Higher After Fed Minutes -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fifth straight session Wednesday, after the U.S. Federal Open Market Committee maintained its interest rates, with a strong Canadian wholesale sales report lifting sentiment. The main index was driven largely by strength in mining, industrial and tech stocks.

Data from Statistics Canada showed Canadian wholesale sales to have risen by a bigger than expected 0.6 percent in June.

Investors are also digesting the minutes of the Bank of England's latest policy meeting showed two of the policy board members to have insisted on an interest rate hike.

Meanwhile, the minutes of the Fed meeting held July 29-30 showed the Federal Open Market Committee voted 9-1 to maintain its current policy of a very gradual withdrawal of stimulus from the U.S. economy. Fed forecasts show most officials expect to start raising rates next year, but some members are now making the case for a "relatively prompt" rate hike.

The Federal Reserve debated when to hike interest rates amid signs the labor market has moved closer to normal, the minutes of the Fed's July policy meeting showed.

The S&P/TSX Composite Index closed Wednesday at 15,561.95, up 84.78 points or 0.55 percent. The index scaled a intraday high of 15,570.45 and a low of 15,425.82.

On Tuesday, the index closed higher with investors reacting positively to some upbeat U.S. economic data.

Crude oil ended sharply higher after a weekly official oil report from the U.S. Energy Information Administration showed crude oil stockpiles in the U.S. to have dropped much more than expected last week.

The Energy Index gained 0.70 percent, with U.S. crude oil futures for September surging $1.59 or 1.7 percent to close at $96.07 a barrel Wednesday on the Nymex.

Among energy stocks, Bellatrix Exploration Ltd. (BXE.TO) slipped 2.41 percent, Cenovus Energy Inc. (CVE.TO) gained 0.57 percent, Enbridge Inc. (ENB.TO) added 1.49 percent, Suncor Energy Inc. (SU.TO) moved up 0.95 percent, Encana Corp. (ECA.TO) added 93 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 0.57 percent.

The Healthcare Index added 0.40 percent with Catamaran Corp. (CCT.TO) up 1.23 percent, and Extendicare Inc. (EXE.TO) up 0.23 percent. Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 0.33 percent.

The Financial Index added 0.44 percent with Toronto-Dominion Bank adding 0.58 percent and Bank of Nova Scotia (BNS.TO) up 0.41 percent.

Among other major banks, Canadian Imperial Bank Of Commerce (CM.TO) added 1.24 percent, Royal Bank of Canada (RY.TO) ended flat at $81.60 a share, and Bank of Montreal (BMO.TO) moved up 0.30 percent.

Gold futures ended lower ahead of the minutes of the U.S. Federal Reserve's July policy meeting, with the dollar trending higher against a basket of select currencies.

Global Gold Index moved up 0.19 percent, with gold for December delivery shedding $1.50 or 0.1 percent to close at $1,295.20 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, B2Gold Corp. (BTO.TO) dropped 1.07 percent, Yamana Gold Inc. (YRI.TO) added 0.85 percent, Barrick Gold Corp. (ABX.TO) slipped 0.29 percent, Goldcorp Inc. (G.TO) gained 0.19 percent, and Detour Gold Corp. (DGC.TO) moved up 0.37 percent.

The Capped Materials Index advanced 0.57 percent with Potash Corp. of Saskatchewan Inc. (POT.TO) advancing 0.57 percent.

The Diversified Metals & Mining Index jumped 1.99 percent, with First Quantum Minerals Ltd. (FM.TO) up 3.22 percent, Lundin Mining Corp. (LUN.TO) gained 1.50 percent, and Teck Resources Limited (TCK.B.TO) added 2.04 percent.

The Capped Industrials Index gained 1.07 percent, with Bombardier Inc. (BBD.B.TO) down 0.52 percent, and Air Canada (AC.B.TO) up 3.27 percent.

The Capped Telecommunications Index added 0.40 percent, with Rogers Communications Inc. (RCI.B.TO) gaining 0.46 percent, Manitoba Telecom Services Inc. (MBT.TO) up 0.23 percent, and BCE Inc. (BCE.TO) moving up 0.48 percent.

The Information Technology Index jumped 1.02 percent, with BlackBerry Limited (BB.TO) adding 3.53 percent, Avigilon Corp. (AVO.TO) gathered 0.60 percent, and Celestica Inc. (CLS.TO) gained 0.59 percent.

The Capped Utilities Index edged up 0.14 percent with Fortis Inc. (FTS.IR.TO) down 0.40 percent.

The Consumer Staples Index shed 0.92 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) down 1.24 percent, Loblaw Companies Limited (L.TO) shed 1.14 percent, Saputo Inc. (SAP.TO) down 0.33 percent, George Weston Limited (WN.TO) slipped 0.91 percent, Jean Coutu Group (PJC) Inc. (PJC.A.TO) dropped 0.87 percent, Maple Leaf Foods Inc. (MFI.TO) dipped 0.40 and Cott Corp. (BCB.TO) edged down 0.12 percent.

Meanwhile, Painted Pony Petroleum Ltd. (PPY.TO) jumped 6.85 percent, after having signed a definitive agreement with AltaGas Ltd. (ALA.TO) for a 15-year strategic alliance to develop processing infrastructure and marketing services for natural gas. Shares of AltaGas Ltd. are down 1.70 percent.

Sears Canada, Inc. (SCC.TO) is declined 0.75 percent on reporting a second-quarter net loss of C$21.3 million or C$0.21 per share compared with a profit of C$152.8 million or C$1.50 per share last year. A pretax gain of C$185 million related to early lease terminations and amendments contributed to the higher net earnings last year.

European markets are trading weak, reacting to the minutes of BOE's August meeting that showed the members were divided on interest rate call. Some disappointing earnings news from the region are also contributing to the weakness.

Investors are also awaiting comments later this week from top bankers at the Fed's annual Jackson Hole symposium, including the Fed Chair Janet Yellen.

In economic news, Bank of England policymakers were split on rate decision this month, for the first time in more than three years as two members said the current economic situation warrant an immediate rate hike from a historic-low. At the August Monetary Policy Committee meeting, two members sought a quarter-point hike in rate to 0.75 percent, while the other seven members voted to keep the rate unchanged at 0.50 percent.

Members were unanimous on holding the rate at 0.50 percent, prevalent since July 2011. The the nine-member board also unanimously voted to leave the asset purchase program unchanged at GBP 375 billion.

Meanwhile, U.K. factory orders grew more than expected in August and manufacturers forecast robust growth in output over the next three months, survey data from the Confederation of British Industry showed Wednesday. About 29 percent of firms reported total order books were above normal and 18 percent said they were below normal, giving a balance of +11 percent. The score increased from +2 in July and above expectations of 4 percent.

Elsewhere, eurozone construction output declined for the second straight month in June, data from Eurostat showed Wednesday. Construction output fell 0.7 percent in June from a month ago. But the rate of decline eased from the 1.4 percent fall registered in May.