TSX Ends Higher As Commodities Rebound -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a five-day loss to end higher, as crude oil and bullion prices rallied, triggering some strong buying in energy and mining sectors, even as Bank of Canada preferred to leave its benchmark interest rate unchanged.

Investors cheered Bank of Canada's decision to leave its benchmark interest rate unchanged, while indicating the effects of lower currency and higher prices in certain consumer sectors pushed up inflation faster than expected. The central bank also added that falling oil prices and household debt could be economic risks.

The benchmark S&P/TSX Composite Index closed Wednesday at 14,754.06, up 133.99 points or 0.92 percent. The index scaled a intraday high of 14,769.27 and a low of 14,627.06.

On Tuesday, the index edged down 5.25 points or 0.04 percent at 14,620.07 on continued global growth concerns after some soft economic data from China and the eurozone.

Investors also weighed a slew of economic data, including a report from private payroll processor ADP that showed a notable increase in U.S. private sector jobs in November, albeit short of expectations.

Meanwhile, U.S. labor productivity rose more than previously estimated in the third quarter, although the upwardly revised increase came in below expectations.

From the eurozone, private sector growth in November was at its weakest in 16 months, less than previously estimated, as new orders declined for the first time in over a year.

On a positive note, U.S. service sector activity accelerated more than anticipated in November, with the index of activity rebounding after falling in the two previous months.

Crude oil rebounded to end higher after a report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have declined more than expected last week.

The U.S. Energy Information Administration's weekly oil report showed crude oil inventories to have declined 3.7 million barrels in the week ended November 28, while analysts expected a 1.3 million barrels increase. Gasoline stocks rose 2.1 million barrels last week, with analysts expecting a gain of 1.1 million barrels. Total U.S. crude oil inventories dropped to 379.3 million barrels, end last week.

Late Tuesday, data from the American Petroleum Institute showed U.S. crude stockpiles to have plunged 6.5 million barrels last week.

The Energy Index gained 1.26 percent, with U.S. crude oil futures for January delivery adding $0.50 or 0.7 percent to close at $67.38 a barrel on the Nymex Wednesday.

Among energy stocks, Bankers Petroleum Ltd. (BNK.TO) moved up 1.26 percent, Suncor Energy Inc. (SU.TO) added 2.08 percent, Crescent Point Energy Corp. (CPG.TO) gained 2.24 percent, Cenovus Energy Inc. (CVE.TO) advanced 0.89 percent, and Enbridge, Inc. (ENB.TO) gathered 3.45 percent.

Talisman Energy Inc. (TLM.TO) dropped 0.75 percent, Canadian Oil Sands Limited (COS.TO) shed 2.01 percent, Encana Corp. (ECA:TSX) fell 0.96 percent, and Canadian Natural Resources Limited (CNQ.TO) fell 0.61 percent.

Athabasca Oil Corp. (ATH.TO) jumped 6.17 percent after its Board of Directors approved an initial 2015 capital budget of C$266 million, which includes C$58 million of carryover from the 2014 budget.

Gold futures rebounded to end higher after some disappointing global economic data, including private sector jobs in the U.S. that rose short of expectations.

The Global Gold Index gained 2.70 percent, with gold for February delivery adding $9.30 or 0.8 percent to settle at $1,208.70 an ounce on the New York Mercantile Exchange Wednesday.

In the gold space, Kinross Gold Corp. (K.TO) jumped 4.76 percent, Goldcorp Inc. (G.TO) added 0.99 percent, and Yamana Gold Inc. (YRI.TO) gathered 4.93 percent.

Barrick Gold Corp. (ABX.TO) gained 3.24 percent, having earlier announced the completion of its JV agreement with Saudi Arabian mining company Ma'aden for Jabal Sayid copper mine in Saudi Arabia.

Detour Gold Corp. (DGC.TO) moved up 2.35 percent, while Eldorado Gold Corp. (ELD.TO) added 3.26 percent.

The Capped Materials Index jumped 2.35 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 2.28 percent.

The Financial Index added 0.38 percent, with Royal Bank of Canada (RY.TO) up 0.36 percent after reporting a net income of C$2.32 billion or $1.57 per share for the fourth quarter, up from C$2.10 billion or C$1.39 per share in the prior-year quarter.

Among other major banks, Bank of Montreal (BMO.TO) dropped 0.50 percent, Toronto-Dominion Bank (TD.TO) gained 0.25 percent, Bank of Nova Scotia (BNS.TO) added 0.26 percent, and Canadian Imperial Bank of Commerce (CM.TO) gained 0.64 percent. National Bank of Canada (NA.TO) lost 1.10 percent.

The Healthcare Index dipped 0.91 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 0.97 percent, Catamaran Corp. (CCT.TO) moved up 0.12 percent and Extendicare Inc. (EXE.TO) surrendered 2.26 percent.

The Diversified Metals & Mining Index gained 1.43 percent, as Sherritt International Corp. (S.TO) soared 9.28 percent, after having surrendered over 8 percent yesterday.

First Quantum Minerals Ltd. (FM.TO) gained 2.09 percent, Teck Resources Limited (TCK.B.TO) added 2.46 percent, and Lundin Mining Corp. (LUN.TO) gathered 3.04 percent.

The Capped Industrials Index advanced 1.36 percent, with Canadian National Railway (CNR.TO) up 1.56 percent, Air Canada (AC.TO) down 0.09 percent, and SNC-Lavalin Group Inc. (SNC.TO) up 2.14 percent. Bombardier Inc. (BBD.B.TO) added 0.23 percent.

The Information Technology Index added 1.57 percent with BlackBerry Ltd. (BB.TO) gaining 2.48 percent and Avigilon Corp. (AVO.TO) climbing 5.61 percent.

The Capped Telecommunication Index inched up 0.05 percent, as Rogers Communications Inc. (RCI.B.TO) shed 0.24 percent, TELUS Corp, (T.TO) added 0.48 percent, and BCE Inc. (BCE.TO) up 0.06 percent.

Ritchie Bros. Auctioneers Incorporated (RBA.TO) is up 0.51 percent, after having conducted its largest agriculture auction of 2014 on December 2 in Saskatoon, SK, selling more than C$41 million of equipment and trucks in a single day.

Onex Corp. (OCX.TO) gained 2.99 percent, with the company reportedly in talks to buy UK-based safety and survival equipment maker Survitec Group Ltd. from private equity firm Warburg Pincus LLC for about 450 million pounds or $704 million.

In economic news from the U.S., a report from payroll processor ADP showed a notable increase of 208,000 jobs in private sector employment in November. However, that was less than economists' forecast for an increase of 225,000 jobs.

A report from the Institute for Supply Management showed U.S. service sector activity to have accelerated much more than anticipated in November, with the non-manufacturing index jumping to 59.3 in November, from 57.1 in the preceding month.

A report from the U.S. Labor Department showed labor productivity to have increased by an upwardly revised 2.3 percent in the third quarter, compared to the previously reported 2.0 percent growth.

The services sector in China continued to expand at a slightly faster rate in November, the latest data from HSBC Bank revealed on Wednesday, with a PMI score of 53.0, up marginally from 52.9 in October.

Eurozone's private sector growth in November signaled growth for the seventeenth month in a row, final figures of a survey by Markit Economics revealed Wednesday. The Composite Purchasing Managers' Index dropped to 51.1 from 52.1 in October. The flash estimate for the November was 51.4.

Eurozone retail sales rebounded in October after a decline in the previous month, but fell short of economists' expectations, data from Eurostat revealed. Retail sales grew 0.4 percent in October from a decline of 1.2 percent in September, revised from 1.3 percent. Economists expected a 0.5 percent increase for October.

Germany's private sector growth slowed more than expected in November to its lowest level in 17 months, survey results from Markit Economics revealed Wednesday. The Composite Output Index declined to 51.7 from October's 53.9. The flash estimate for the index was 52.1.

The services sector in Japan swung back to expansion in November, a survey from Markit Economics showed on Wednesday, with a PMI score of 51.2, up from 48.7 in October.