TSX Ends Higher On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Tuesday, tracking rising global equity markets, led by financial stocks, on some mixed economic data. Nonetheless, the gains were limited due to uncertainties over the U.S. Federal Reserve's monetary policy, even as worries over the U.S. economy resurfaced as lawmakers continued to struggle with the Federal budget.

Investors continued to monitor the situation in the U.S., where the government is due to run out of money if the Congress and the White House do not agree on a 2014 spending plan, raising the debt ceiling by September 30, 2013.

The S&P/TSX Composite Index closed Tuesday at 12,848.89, up 37.71 points or 0.29 percent. The index touched an intraday high of 12,878.71 and a low of 12,784.07.

The Information Technology Index gained 0.18 percent, although smartphone maker BlackBerry Limited (BB.TO) shed 3.30 percent. Yesterday, Fairfax Financial Holdings Ltd. made an offer to take the smartphone maker private for a cash-consideration of about $4.7 billion.

The Diversified Metals & Mining Index inched up 0.03 percent, with Teck Resources Limited (TCK.B.TO) shedding 0.11 percent and Lundin Mining Corp. (LUN.TO) surrendered 0.43 percent. Osisko Mining Corp. (OSK.TO) fell 0.59 percent.

The Capped Materials Index edged up 0.09 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) dipping 1.76 percent.

Gold futures ended lower for a fourth straight session Tuesday, as investors mulled the prospect of a cut to the Federal Reserve's $85 billion monthly bond-buying program in October.

The Global Gold Index gained 0.27 percent, although gold futures for December delivery shed $10.70 or 0.8 percent to close at $1,316.30 an ounce Tuesday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) shed 1.38 percent, while Yamana Gold Inc. (YRI.TO) edged up 0.09 percent. B2Gold Corp. (BTO.TO) added 2.31 percent, while Goldcorp Inc. (G.TO) moved up 0.53 percent. Kinross Gold Corporation (K.TO) dipped 2.29 percent, while Eldorado Gold Corp. (ELD.TO) shed 0.43 percent.

U.S. crude oil ended lower for a fourth straight day on Tuesday, with supply concerns over shipments from the Middle East easing, although worries persisted over the Federal Reserve's stand on its $85 billion bond-buying program in October.

The Energy Index gained 0.04 percent, with U.S. crude oil futures for November delivery dropping $0.46 or 0.4 percent to close at $103.13 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) lost 0.43 percent, Talisman Energy Inc. (TLM.TO) dropped 0.53 percent, and Suncor Energy Inc.(SU.TO) shed 1.45 percent. Enbridge Inc. (ENB.TO) gained 0.60 percent, while Imperial Oil Limited (IMO.TO) inched up 0.22 percent.

The Financial Index added 0.39 percent with Bank of Montreal (BMO.TO) up 0.49 percent and Manulife Financial Corp. (MFC.TO) up 0.18 percent. The Bank of Nova Scotia (BNS.TO) gained 0.34 percent, while Toronto-Dominion Bank (TD.TO) gathered 0.74 percent. Royal Bank of Canada (RY.TO) added 0.44 percent, while National Bank of Canada (NA.TO) shed 1.26 percent.

The Capped Industrials Index added 0.64 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 1.25 percent.

Meanwhile, Bonnett's Energy Corp.(BT.TO) jumped 7.54 percent after agreeing to be bought by BEC Acquisition Ltd., a wholly-owned unit of Mill City Capital, L.P., for about C$117 million.

In economic news from Canada, Statistics Canada said retail sales rose 0.6 percent in July to $40.3 billion, led by higher sales at gasoline stations, continuing the uptrend witnessed since the beginning of 2013. Gains were reported in 8 of the 11 sub-sectors, representing 52 percent of total retail trade. Economists expected sales to rise 0.6 percent. In volume terms, retail sales increased 0.5 percent, recording its fourth increase in five months.

From the U.S., the Standard & Poor's said that the S&P/Case-Shiller 20-City Composite Home Price Index rose 0.6 percent on a seasonally adjusted basis in July following a 0.9 percent increase in June. Economists had expected the index to rise by 0.8 percent.

Separately, a Conference Board report showed U.S. consumer confidence to have deteriorated more than anticipated in September. The Conference Board's consumer confidence index dipped to 79.7 in September from an upwardly revised 81.8 in August. Economists expected the index at 80.0 from the 81.5 originally reported for the previous month.

From the eurozone, German business confidence continued to improve in September, but remained below economists' expectations, reports said citing survey results from the Ifo Institute. The business climate index edged up to 107.7 in September from a revised reading of 107.6 in August. The expected reading was 108. The Ifo business expectations index rose to 104.2 in September from 103.3 in the previous month. This was forecast to rise to 104.