TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended sharply higher for a second straight session Wednesday, tracking rising U.S. equity markets, although ongoing concerns over the Chinese economy continued to persist. Investors opted for some bargain buying on the back some desperate efforts by China to boost its sagging economy.

It was a volatile day with the market was up sharply in early trade but struggled to maintain them, and even slipped into negative territory briefly due to heavy losses in the gold and mining sectors.

Global markets bounced back sharply during yesterday's session, following the panic selling of "Black Monday." However, the majority of them gave back much of those gains as the session wore on. Investors remain concerned by the situation in China, despite the nation's efforts to boost growth.

On Wednesday, China introduced some new stimulus measures to inject further liquidity into the sagging economy. China's central bank injected 140 billion yuan or $28.80 billion into the financial system through its short-term liquidity operations facility. The Peoples' Bank of China had also lowered interest rates for the fifth time in nine months on Tuesday.

Markets in Europe ended firmly in the red, after briefly turning positive during the session.

Markets in the United States surged to end with its biggest gains in nearly four years. The Dow Jones Industrial Average surged 3.95 percent, the S&P 500 soared 3.90 percent, and the Nasdaq soaring 4.2 percent.

Some upbeat economic data also helped market sentiments improve, with new orders for U.S. manufactured durable goods unexpectedly increasing in July, a report from the Commerce Department showed Wednesday.

The benchmark S&P/TSX Composite Index closed Tuesday at 13,381.59, up 230.66 points or 1.75 percent. The index scaled an intraday high of 13,393.22 and a low of 13,061.90.

On Tuesday, the index closed up 98.19 points or 0.75 percent, at 13,150.93. The index scaled an intraday high of 13,445.63 and a low of 13,134.33.

The heavyweight Financial Index jumped 2.42 percent, as Bank of Montreal (BMO.TO) soared 4.76 percent, National Bank of Canada (NA.TO) surged 5.29 percent, and Royal Bank of Canada (RY.TO) shed 0.36 percent.

Toronto-Dominion Bank (TD.TO) jumped 2.88 percent, Bank of Nova Scotia (BNS.TO) gathered 2.78 percent, and Canadian Imperial Bank of Commerce (CM.TO) jumped 2.65 percent.

Crude oil futures ended lower on demand growth concerns, even as the official weekly crude oil inventory data from the U.S. Energy Information Administration showed stockpiles to have declined more than expected last week.

A weekly report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have declined 5.5 million barrels in the week ended August 21, while analysts expected stocks to rise 1.1 million barrels.

The Energy Index gained 2.41 percent, with U.S. crude oil futures for October delivery, the most actively traded contract, gained dropped $0.71 or 1.8 percent, to settle at $38.60 a barrel on the New York Mercantile Exchange Wednesday.

Crescent Point Energy Corp. (CPG.TO) jumped 6.41 percent, Canadian Natural Resources Limited (CNQ.TO) inched up 0.62 percent, and Encana Corp. (ECA.TO) gathered 4.25 percent. Suncor Energy Inc. (SU.TO) moved up 2.68 percent.

The Diversified Metals & Mining Index plunged 3.87 percent, as First Quantum Minerals (FM.TO) plummeted 8.79 percent, Teck Resources Limited (TCK-B.TO) shed 3.66 percent, Lundin Mining Corp. (LUN.TO) fell 1.29, and HudBay Minerals Inc. (HBM.TO) surrendered 6.53 percent.

Gold futures ended lower, as investors opted for the rising U.S. equities amid some upbeat factory orders data, and with the dollar trending higher.

The Gold Index plunged 4.96 percent, with gold for December delivery shedding $13.70 or 1.2 percent, to settle at $1,124.60 an ounce on the New York Mercantile Exchange Wednesday.

Yamana Gold Inc. (YRI.TO) plunged 6.77 percent, while IAMGOLD Corp. (IMG.TO) plummeted 10.70 percent.

Among other gold stocks, Barrick Gold Corp. (ABX.TO) plunged 7.14 percent, and Kinross Gold Corp. (K.TO) dived 6.09 percent. Goldcorp Inc. (G.TO) fell 5.31 percent. Eldorado Gold Corp. (ELD.TO) dipped 2.28 percent.

The Capped Materials Index fell 2.10 percent, as Agnico Eagle Mines Limited (AEM.TO) plummeted 5.24 percent, Agrium Inc. (AGU.TO) gained 3.19 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) gathered 2.99 percent.

The Capped Health Care Index added 2.28 percent as Concordia Healthcare Corp. (CXR.TO) gained 3.21 percent, Extendicare Inc. (EXE.TO) fell 0.39 percent, and Valeant Pharmaceutical International (VRX.TO) gathered 3.02 percent.

The Capped Information Technology Index gathered 2.89 percent, as BlackBerry Limited (BB.TO) moved up 0.33 percent.

Among other tech stocks, Sierra Wireless (SW.TO) inched up 0.04 percent, Descartes Systems Group (DSG.TO) jumped 4.95 percent, and Avigilon Corp. (AVO.TO) gained 3.07 percent.

The Capped Telecommunication Index added 1.31 percent, as Rogers Communication (RCI-B.TO) gained 0.83 percent, BCE Inc. (BCE.TO) moved up 0.67 percent, TELUS Corp. (T.TO) climbed 2.17 percent, and Manitoba Telecom Services Inc. (MBT.TO) gathered 1.58 per share.

The Capped Industrials Index gained 1.65 percent, even as Bombardier (BBD.B.TO) climbed 1.74 percent and Finning International Inc. (FTT.TO) gained 3.85 percent.

Pacific Exploration & Production (PRE.TO) shed 1.42 percent, after the company announced that José Francisco Arata has retired as President and director of the Company effective immediately.

In economic news, U.S. manufactured durable goods climbed 2.0 percent in July after jumping an upwardly revised 4.1 percent in June, a Commerce Department report showed Wednesday. Economists expected orders to drop by 0.4 percent.

British retail sales growth improved unexpectedly in August, survey data from the Confederation of British Industry revealed Wednesday. The balance of the CBI's distributive trades survey rose to +24 in August from +21 in the previous month. Economists had expected a balance of +18.

U.K. mortgage approvals rose for a seventh month in a row in July to their highest level in seventeen months, in line with economists' expectations, figures from the British Bankers' Association showed Wednesday.

The seasonally adjusted number of mortgage approvals for house purchased climbed to 46,033 from 44,802 in June, which was revised from 44,488. Economists had forecast 46,000 approvals for July.

The combined real gross domestic product of the member countries of the Organization for Economic Cooperation and Development grew at a slightly slower pace in the second quarter, data showed Wednesday. Real GDP expanded 0.4 percent sequentially, which was slightly slower than the 0.5 percent growth seen in the first quarter.