TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day loss to end higher on Wednesday, after having plummeted more than 2 percent yesterday, tracking plunging global equities on concerns over the Chinese economy.

The market was up with bargain hunting providing a boost in early trade, with some hiccups after a U.S. government report showed crude inventories to have increased much more than anticipated. However, the main index rallied to end higher towards the close, led by healthcare, information tech, and mining stocks.

Markets in the United States ended positively, after some upbeat economic data in private sector employment ahead of Friday's jobs report. The news encouraged investors, with the larger than expected rise in labor productivity report also contributing to the positive mood. The Dow Jones Industrial Average and the S&P 500 closed about 1.8 percent higher, while the Nasdaq jumped over 2.5 percent.

A report from the Labor Department showed Labor productivity in the U.S. jumped much more than previously estimated in the second quarter, with a more than expected 3.3 percent rise, ahead of Friday's jobs data.

Meanwhile, employment in the U.S. private sector recorded a notable increase in August, a report from payroll processor ADP showed Wednesday, although the pace of job growth came in short of economists' estimates.

In another sign that the jobs market is improving, the Federal Reserve's Beige Book has reported increased wage pressures in a number of districts around the U.S.

U.S. President Obama also has amassed enough support in the Senate to push through the nuclear deal with Iran. An influx of Iranian oil to the already oversupplied market could drive crude oil prices further to the downside.

Most markets in Europe ended in the green Wednesday, bouncing back from yesterday's China fueled weakness. Bargain hunting was largely responsible for the gains.

The benchmark S&P/TSX Composite Index closed Wednesday at 13,545.25, up 63.35 points or 0.47 percent. The index scaled an intraday high of 13,626.94 and a low of 13,419.99.

On Tuesday, the index closed down 377.22 points or 2.72 percent, at 13,481.90. The index scaled an intraday high of 13,691.80 and a low of 13,419.12.

The Diversified Metals & Mining Index gained 1.27 percent, as First Quantum Minerals (FM.TO) jumped 4.23 percent, Teck Resources Limited (TCK-B.TO) added 2.68 percent, Lundin Mining Corp. (LUN.TO) added 0.98 percent, and HudBay Minerals Inc. (HBM.TO) surrendered 2.08 percent.

Sherritt International (S.TO) gained 2.75 percent.

The heavyweight Financial Index added 0.28 percent, as Bank of Montreal (BMO.TO) dipped 0.03 percent and National Bank of Canada (NA.TO) surrendered 0.40 percent. Royal Bank of Canada (RY.TO) ended flat at C$71.33 a share, after having lost 2.74 percent yesterday.

Toronto-Dominion Bank (TD.TO) gained 0.31 percent, Bank of Nova Scotia (BNS.TO) added 0.27 percent, and Canadian Imperial Bank of Commerce (CM.TO) inched up 0.02 percent.

Crude oil ended higher even as official data from the Energy Information Administration showed crude stockpiles in the U.S. to have increased more than expected last week.

A weekly report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have increased 4.7 million barrels in the week ended August 28, while analysts anticipated a decline of 0.8 million barrels. Total U.S. crude stockpiles aggregated 455.4 million barrels end last week. The Energy Index dropped 0.97 percent, with U.S. crude oil futures for October delivery, the most actively traded contract, gaining $0.84 or 1.9 percent, to settle at $46.25 a barrel on the New York Mercantile Exchange Wednesday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) gained 0.44 percent, Canadian Natural Resources Limited (CNQ.TO) added 1.16 percent, Cenovus Energy (CVE.TO) gathered 0.73 percent, and Encana Corp. (ECA.TO) moved up 0.67 percent.

Suncor Energy Inc. (SU.TO) dropped 2.91 percent, while Canadian Oil Sands Limited (COS.TO) shed 1.74 percent.

Gold futures ended lower with investors turning to the riskier equity assets after global stock markets rebounded as the dollar trended higher on some upbeat economic data from the U.S.

The Gold Index dipped 0.65 percent, with gold for December delivery dropping $6.20 or 0.5 percent, to settle at $1,133.60 an ounce on the New York Mercantile Exchange Wednesday.

Yamana Gold Inc. (YRI.TO) dropped 2.98 percent, while IAMGOLD Corp. (IMG.TO) fell 1.44 percent.

Among other gold stocks, Barrick Gold Corp. (ABX.TO) dipped 0.11 percent, Kinross Gold Corp. (K.TO) added 0.89 percent, Goldcorp Inc. (G.TO) moved up 0.22 percent, and Eldorado Gold Corp. (ELD.TO) dropped 1.56 percent.

The Capped Materials Index moved up 0.13 percent, as Agnico Eagle Mines Limited (AEM.TO) dipped 1.91 percent, Agrium Inc. (AGU.TO) gained 0.72 percent, and Potash Corp. of Saskatchewan Inc. (POT.TO) added 0.68 percent.

The Capped Health Care Index surged 4.81 percent as Valeant Pharmaceuticals International (VRX.TO) jumped 4.14 percent after agreeing to acquire Synergetics USA, Inc. (SURG) for $6.50 per share in cash.

Among other healthcare stocks, Concordia Healthcare Corp. (CXR.TO) surged 5.25 percent and Extendicare Inc. (EXE.TO) jumped 5.12 percent.

The Capped Information Technology Index gained 1.59 percent, as BlackBerry Limited (BB.TO) moved up 2.06 percent.

Among other tech stocks, Sierra Wireless (SW.TO) gathered 3.25 percent, while Descartes Systems Group (DSG.TO) moved up 2.33 percent. Avigilon Corp. (AVO.TO) plummeted 11.64 percent after announcing a streamlined management structure earlier today.

The Capped Telecommunication Index added 0.89 percent, as Rogers Communication (RCI-B.TO) dropped 0.34 percent, BCE Inc. (BCE.TO) gained 1.69 percent, TELUS Corp. (T.TO) moved up 0.86 percent, and Manitoba Telecom Services Inc. (MBT.TO) gathered 1.41 per share.

The Capped Industrials Index shed 0.30 percent, as Bombardier (BBD.B.TO) dropped 0.85 percent despite announcing its Chinese joint venture Bombardier Sifang (Qingdao) Transportation Ltd. has been awarded a contract with China Railway Corp. to supply 15 CRH380D very high speed trains.

Among other industrial stocks, Finning International Inc. (FTT.TO) added 0.80 percent, Air Canada gained 1.85 percent, and AutoCanada (ACQ.TO) dropped 3.83 percent.

Enbridge (ENB.TO) inched up 0.04 percent, after closing the transfer of its Canadian Liquids Pipeline Business and certain Canadian renewable energy assets to Enbridge Income Fund for consideration of $30.4 billion, plus additional incentive rights.

On the economic front, a Commerce Department report on Wednesday showed new orders for U.S. manufactured goods rose less than expected in July, partly reflecting a decrease in orders for non-durable goods. The report showed factory orders to have climbed by 0.4 percent in July, following an upwardly revised 2.2 percent jump for orders in June. Economists had expected orders to rise by 0.9 percent compared to the 1.8 percent increase reported for the previous month.

Employment in the U.S. private sector saw a notable increase in August, with ADP reporting private sector employment to have climbed by 190,000 jobs following a downwardly revised increase of 177,000 jobs in July. Economists expected employment to jump by about 210,000 jobs compared to the increase of 185,000 jobs originally reported for the previous month.

Labor productivity in the U.S. jumped much more than previously estimated in the second quarter, with an increase of 3.3 percent, reflecting a notable upward revision from the previously reported 1.3 percent growth. Economists expected the pace of growth to be upwardly revised to 2.8 percent.

Meanwhile, the Labor Department also said unit labor costs dropped by 1.4 percent in the second quarter compared to the previously reported 0.5 percent increase. Costs had been expected to be revised to show a drop of 1.2 percent.

Eurozone producer prices declined at a stable rate in July, in line with expectations, data from Eurostat showed Wednesday. The producer price index fell 2.1 percent year-over-year in July, the same rate of decrease as in the previous month, revised down from the 2.2 percent drop reported earlier.

British construction sector sustained its robust growth in August, albeit at a slower pace, with continued boost from the housing sector and new impetus from the commercial sector. The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers' Index rose to 57.3 from 57.1 in July, survey results from the Chartered Institute of Procurement and Supply and Markit Economics revealed Wednesday. Economists had forecast a higher score of 57.5.