TSX Ends Higher On Global Cues, Bargain Hunting -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Monday, rebounding from a sharp fall at the end of the previous session, as global equity markets in the U.S. and Europe snapped out of the huge sell-off on Friday with some bargain hunting as sentiments improved after some encouraging comments from Fed officials..

Global equity markets pulled back on Friday due largely to the disappointment that the U.S. Federal Reserve did not hike interest rates with concerns over the health of the global economy.

The majority of the Canadian sectors ended in the green, with strength in energy, financial and industrial stocks, while weakness in mining and gold stocks slightly limiting the upside move.

Markets in Europe ended in positive territory due partly to some bargain hunting after the weak performance at the end of the previous week. The left-wing Syriza party won more than 35 percent of seats in the Greek elections held on Sunday. However, Syriza, fell short of a majority and will need to form a coalition with the nationalist Independent Greeks.

Markets in the United States also rose after Friday's sharp sell-off on bargain hunting amid the Federal Reserve's decision to leave interest rates unchanged indicative of a continued period of uncertainty.

In an interview with CNBC, St. Louis Fed President James Bullard said the central bank could raise rates next month but noted that many things can change from one meeting to the next.

Existing home sales in the U.S. fell by much more than expected in the month of August, according to a report from the National Association of Realtors on Monday.

The benchmark S&P/TSX Composite Index closed Monday at 13,779.44, up 135.54 points or 0.97 percent. The index scaled an intraday high of 13,847.41 and a low of 13,687.09.

On Friday, the index closed down 140.26 points or 1.02 percent, at 13,646.90. The index scaled an intraday high of 13,692.58 and a low of 13,587.44.

The Diversified Metals & Mining Index plunged 5.02 percent as First Quantum Minerals (FM.TO) plummeted 9.35 percent, while Teck Resources Limited (TCK-B.TO) dived 5.05 percent.

Lundin Mining Corporation (LUN.TO) dropped 2.64 percent, HudBay Minerals Inc. (HBM.TO) fell 5.26 percent and Sherritt International (S.TO) surrendered 5.32 percent.

The heavyweight Financial Index gained 1.72 percent, as Royal Bank of Canada (RY.TO) added 0.97 percent while National Bank of Canada (NA.TO) jumped 1.35 percent.

Toronto-Dominion Bank (TD.TO) jumped 1.82 percent, Bank of Nova Scotia (BNS.TO) moved up 1.79 percent, Canadian Imperial Bank Of Commerce gathered 1.47 percent, and Bank of Montreal (BMO.TO) added 1.60 percent.

Crude oil prices ended sharply higher on concerns over dwindling domestic production with declining rig counts for the last three weeks.

The Energy Index jumped 1.55 percent, with U.S. crude oil futures for October delivery jumping $1.89 or 3.2 percent, to settle at $46.68 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) added 2.99 percent, Canadian Natural Resources Limited (CNQ.TO) gained 1.26 percent, and Canadian Oil Sands (COS.TO) jumped 5.42 percent.

Cenovus Energy (CVE.TO) gained 1.28 percent, while Baytex Energy Corp. moved up 1.53 percent.

Encana Corp. (ECA.TO) dipped 0.21 percent.

Suncor Energy (SU.TO) added 2.20 percent after revealing that it has agreed to purchase an additional 10 percent working interest in the Fort Hills oil sands project from Total E&P Canada Ltd., for $310 million.

Gold futures ended lower as investors opted for the more riskier equity assets with most global stock markets in the U.S. and Europe trending higher.

The Gold Index shed 1.78 percent, as gold for December delivery fell $5.00 or 0.4 percent, to settle at $1,132.80 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 3.10 percent, Goldcorp Inc. (G.TO) fell 1.46 percent, and Eldorado Gold (ELD.TO) surrendered 2.17 percent.

Kinross Gold Corp. (K.TO) plunged 4.96 percent.

Barrick Gold (ABX.TO) declined 2.35 percent after indications of some strong interest in a package of six U.S. gold assets that the company wants to sell, the Globe and Mail reports.

The Capped Materials Index fell 1.90 percent, as Agnico Eagle Mines Limited (AEM.TO) dropped 1.18 percent, Agrium Inc. (AGU.TO) slipped 0.84 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) shed 2.76 percent.

Franco-Nevada Corp. (FNV.TO) fell 0.47 percent, while Silver Wheaton (SLW.TO) dropped 1.22 percent.

The Capped Health Care Index surrendered 1.92 percent, as Valeant Pharmaceuticals International (VRX.TO) fell 4.89 percent, Extendicare Inc. (EXE.TO) moved up 0.62 percent, and Concordia Healthcare Corp. (CXR.TO) dipped 0.26 percent.

The Capped Information Technology Index advanced 1.16 percent, as BlackBerry Limited (BB.TO) fell 1.01 percent, Descartes Systems Group (DSG.TO) moved up 1.86 percent, and Constellation Software (CSU.TO) added 1.99 percent.

The Capped Telecommunication Index gathered 0.90 percent, as Rogers Communication (RCI-B.TO) moved up 0.26 percent, BCE Inc. (BCE.TO) gained 1.11 percent, and TELUS Corp. (T.TO) added 1.08 percent. Manitoba Telecom Services Inc. (MBT.TO) advanced 1.19 percent.

The Capped Industrials Index gathered 1.55 percent, as Bombardier (BBD-B.TO) dropped 1.15 percent, Finning International Inc. (FTT.TO) dived 0.99 percent, and Air Canada moved up 1.49 percent.

Absolute Software (ABT.TO) fell 1.93 percent, after HEAT Software acquired its assets and operations related to Absolute Manage and Absolute Service.

On the economic front, data from Statistics Canada showed that wholesale sales were unchanged at C$55.4 billion on month in July. That's down from expectations of 0.8 percent growth, following a 1.3 percent rise in the prior month.

existing home sales in the U.S. fell much more than expected in August, a from the National Association of Realtors on Monday. NAR said existing home sales tumbled by 4.8 percent to a seasonally adjusted annual rate of 5.31 million in August from a downwardly revised 5.58 million in July. Economists expected sales to dip to a rate of 5.50 million from the 5.59 million originally reported for the previous month.

German producer prices declined at a faster-than-expected pace in August, figures from Destatis showed Monday. Producer prices fell 1.7 percent year-over-year in August, following a 1.3 percent decrease in the previous month. Economists had forecast a 1.6 percent drop for the month. Producer prices have been falling since August 2013.

China's service sector strengthened in the third quarter but the manufacturing sector continued to remain weak, the China Beige Book survey published by CBB International revealed Monday. Capital expenditure strengthened in the third quarter, the survey results based on responses from more than 2,100 firms showed today. Meanwhile, property market still remained weak.