TSX Ends Higher On China Data, Fed -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a seventh straight session on Wednesday, after some upbeat economic data from China, with investors mulling over the U.S. Federal Reserve Chairman Janet Yellen's assurance of continued accommodative monetary policy until the jobs situation improves.

China's trade surplus increased with export and import growth accelerating unexpectedly at the start of the year, defying expectations that the second largest economy in the world is set for a slowdown in early 2014.

Meanwhile, the House of Representatives passed an extension to the U.S. government's debt limit Tuesday evening, avoiding a potential political standoff with the White House. The vote to raise the debt ceiling was 221 in favor and 201 against.

The S&P/TSX Composite Index closed Wednesday at 13,900.49, up 19.50 points or 0.14 percent. The index scaled an intraday high of 13,947.34 and a low of 13,880.99.

Gold futures moved up for a sixth straight day, continuing to push the $1,300 an ounce mark.

The Global Gold Index slipped 3.22 percent, with gold futures for April delivery, the most actively traded contract, gaining $5.20 or 0.4 percent to close at $1,295.00 an ounce Wednesday on the Nymex.

Among gold stocks, Detour Gold Corp. (DGC.TO) dived 3.37 percent, while Kinross Gold Corp. (K.TO) dropped 3.90 percent. Barrick Gold Corp. (ABX.TO) dropped 3.48 percent, while Yamana Gold Inc. (YRI.TO) dived 3.36 percent.

The Capped Materials Index dropped 1.77 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) dropping 0.11 percent.

U.S. crude oil ended at a six-week high after some strong economic data from China, even as a report from the Energy Information Administration showed crude stockpiles in the U.S. to have increased more than expected while gasoline inventories dipped unexpectedly last week.

Earlier today, data from the Energy Information Administration revealed US crude oil inventories to have moved up 3.3 million barrels, while gasoline stocks dropped an unexpected 0.7 million barrels in the week ended February 7. Analysts expected crude oil inventories to gain 2.5 million barrels last week, with gasoline stocks were anticipated to come in unchanged.

The Energy Index gained 1.24 percent, with U.S. crude oil futures for March delivery, the most actively traded contract, gaining $0.43 or 0.4 percent to close at $100.37 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) moved up 2.20 percent, while Encana Corp. (ECA.TO) added 1.54 percent. Athabasca Oil Corporation (ATH.TO) added 4.05 percent, while Suncor Energy Inc. (SU.TO) shed 0.39 percent.

Talisman Energy Inc. (TLM.TO, TLM) gained 2.05 percent after reporting a hefty loss for the fourth quarter, weighed down by asset and goodwill impairments. The company said it will also dispose of another $2 billion of assets.

The heavyweight Financial Index gathered 0.69 percent with Royal Bank of Canada (RY.TO) up 0.61 percent and the Bank of Nova Scotia (BNS.TO) up 0.52 percent. Bank of Montreal (BMO.TO) added 1.12 percent, and Toronto-Dominion Bank (TD.TO) gained 0.35 percent. Manulife Financial Corp. (MFC.TO) gained 2.10 percent.

The Diversified Metals & Mining Index gained 0.35 percent, with Lundin Mining Corp. (LUN.TO) up 0.56 percent, and First Quantum Minerals (FM.TO) up 2.55 percent. Teck Resources Limited (TCK.B.TO) gained 0.47 percent.

The Information Technology Index shed 0.45 percent, with smartphone maker BlackBerry Limited (BB.TO) shedding 0.84 percent.

The Capped Industrials Index slipped 0.08 percent, with Bombardier Inc. (BBD.B.TO) dropping 2.65 percent.

Air Canada (AC.B.TO) plunged 20.46 percent after reporting core earnings of C$145 million in the first quarter of 2013. The company said weakness in the Canadian dollar and rough weather are expected to hit results in the current quarter.

Media giant Rogers Communications Inc. (RCI.B.TO) plunged 5.27 percent, after reporting a fourth-quarter profit that dropped 20 percent on a decline in wireless revenue. Meanwhile, the company's board has authorized the repurchase of $500 million of its stock.

In economic news, China's trade surplus increased to $31.9 billion in January from $25.6 billion a month ago, data from the General Administration of Customs showed Wednesday. Export shipments surged 10.6 percent in January from last year. Analysts expected exports to rise 0.1 percent after expanding 4.3 percent in December. Imports advanced 10 percent versus 8.3 percent growth in December and the 4 percent growth forecast by economists.

The Bank of England on Wednesday hinted that the interest rates are unlikely to rise anytime soon even as the unemployment rate fell faster than estimated in August. In its quarterly Inflation Report, the BoE's Monetary Policy Committee suggested that the interest rate is set to rise only in the second quarter of 2015, in line with current market expectations. The bank estimates that the unemployment rate has fallen to the 7 percent threshold in January this year.