TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Wednesday, as rising gold stocks more than offset the declining energy shares with crude prices continuing to drop.

Investors also weighed some upbeat data from the U.S. with initial claims for unemployment benefits declining more than expected last week, on the back of the solid gross domestic product growth reported yesterday.

Nonetheless, the gains were capped as investors largely refrained from making significant moves ahead of a long weekend. Data showing a bigger than expected drop in U.S. initial jobless claims aided sentiment, but a sell-off in oil stocks due to falling crude oil prices is continued to hurt the market.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,607.31, up 13.28 points or 0.09 percent. The index scaled an intraday high of 14,645.07 and a low of 14,516.23.

On Tuesday, the index closed at 14,594.03, up 161.65 points or 1.12 percent, as investors made a beeline for the more riskier equity assets after some strong gross domestic product growth data from both sides of the border.

Crude oil ended lower after a report from the Energy Information Administration showed crude oil stockpiles in the U.S. to have risen more than expected last week.

The U.S. Energy Information Administration's weekly oil report showed U.S. crude oil inventories to have surged 7.3 million barrels in the week ended December 19, while analysts expected a decline of 1.8 million barrels. The report showed U.S. crude oil inventories at 387.2 million barrels, end last week.

Gasoline stocks jumped by 4.1 million barrels last week, while inventories of distillate, including heating fuel, increased 2.3 million barrels.

The Energy Index fell 0.92 percent, with U.S. crude oil futures for February delivery dropping $1.28 or 2.2 percent to close at $55.84 on the Nymex Wednesday.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 0.68 percent, Suncor Energy Inc. (SU.TO) fell 1.30 percent, and Canadian Oil Sands Limited (COS.TO) shed 2.36 percent.

Pacific Rubiales Energy Corp. (PRE.TO) dropped 1.18 percent, Encana Corp. (ECA.TO) lost 0.37 percent, Talisman Energy Inc. (TLM.TO) edged down 0.11 percent, Crescent Point Energy Corp. (CPG.TO) surrendered 1.30 percent, and Cenovus Energy Inc. (CVE.TO) fell 1.48 percent.

Gold futures ended lower with investors opting for the riskier equity markets after some upbeat data from the U.S. showed initial claims for unemployment benefits declining more than expected, on the back of a strong, better than expected gross domestic product for the third quarter yesterday.

The Global Gold Index jumped 3.21 percent, although gold for February delivery slipped $4.50 or about 0.4 percent to settle at $1,173.50 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, Kinross Gold Corp. (K.TO) gained 3.64 percent, Agnico Eagle Mines Limited (AEM.TO) fell 0.59 percent, Goldcorp Inc. (G.TO) added 2.95 percent, Eldorado Gold Corp. (ELD.TO) gathered 3.72 percent, Barrick Gold Corp. (ABX.TO) gained 1.78 percent, and Franco-Nevada Corp. (FNV.TO) gathered 2.97 percent.

Timmins Gold Corp. (TMM.TO) jumped 4.08 percent after announcing the completion of purchase of the Caballo Blanco Gold Project in Veracruz State, Mexico, as per the agreement with Goldgroup Mining Inc. (GGA.TO).

The Capped Materials Index moved up 1.45 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 0.07 percent.

The heavyweight Financial Index gained 0.09 percent, as National Bank of Canada (NA.TO) shed 0.24 percent, Toronto-Dominion Bank (TD.TO) advanced 0.33 percent, and Bank of Nova Scotia (BNS.TO) gathered 0.15 percent.

Royal Bank of Canada (RY.TO) added 0.09 percent, while Bank of Montreal (BMO.TO) gained 0.06 percent. Canadian Imperial Bank of Commerce (CM.TO) fell 0.03 percent.

Manulife Financial Corp. (MFC.TO) inched up 0.09 percent, after announcing its U.S. Division, John Hancock Financial will acquire New York Life's Retirement Plan Services.

The Healthcare Index added 0.29 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) fell 0.25 percent, Catamaran Corp. (CCT.TO) gained 0.30 percent, and Extendicare Inc. (EXE.TO) added 0.61 percent.

The Diversified Metals & Mining Index added 0.74 percent, as Teck Resources Limited (TCK.B.TO) dropped 0.45 percent, First Quantum Minerals Ltd. (FM.TO) advanced 0.56 percent, and Finning International Inc. (FTT.TO) moved up 0.36 percent.

HudBay Minerals Inc. (HBM.TO) added 1.85 percent, and Lundin Mining Corp. (LUN.TO) moved up 1.59 percent.

The Capped Industrials Index gained 0.28 percent, with Bombardier Inc. (BBD.B.TO) up 0.25 percent.

The Information Technology Index shed 0.42 percent, with BlackBerry Ltd. (BB.TO) down 1.35 percent.

The Consumer Staples Index slipped 0.24 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) down 0.42 percent and Cott Corp. (BCB.TO) dropped 0.62 percent.

Brookfield Residential Properties Inc. (BRP.TO) jumped 5.01 percent and Brookfield Asset Management Inc. (BAM.A.TO) added 0.83 percent, after having reached a definitive agreement by which Brookfield Asset Management will acquire approximately 30.6% of Brookfield Residential common shares.

Newalta Corp. (NAL.TO) jumped 6.74 percent after revealing an agreement with Revolution Acquisition LP, to sell its Industrial Division for cash proceeds of C$300 million plus the assumption of the associated asset retirement obligation.

In economic news, a report from the U.S. Labor Department showed initial jobless claims to have declined to a seven-week low of 280,000 in the week ended December 20, down 9,000 from preceding week. Economists had expected claims to fall to 287,500 last week.

However, continuing claims were up more than expected in the week ended December 13, coming in at 2,403,000, up from a revised 2,378,000 in the preceding week and higher than an expected figure of 2,380,000.

British labor productivity improved during three months to September for the first time since the second quarter of 2013, data from the Office for National Statistics showed Wednesday. Output per hour increased 0.6 percent sequentially in the third quarter, after staying flat a quarter ago. This was the first expansion since the second quarter of 2013. Productivity rose 0.3 percent from the same period of last year, the first increase this year, following a 0.6 percent fall in the second quarter.

Standard & Poor's Ratings Services said it may downgrade the sovereign rating of Russia due to the rapid deterioration in monetary flexibility and the impact of the weakening economy on the financial system. Currently, Russia has 'BBB-' rating, the lowest investment grade. The rating agency placed the 'BBB-/A-3' sovereign ratings on Russia on CreditWatch with negative implications.