TSX Ends Higher On Global Cues, Upbeat Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Thursday, tracking rising global equity markets after some upbeat economic data from the U.S. first-time claims for unemployment benefits dropping more than expected to its lowest level in two months.

However, gold stocks ended lower after gold prices slipped near $1200 an ounce. Markets in Europe have turned in a mixed performance. Nonetheless, investors remained cautious ahead of the Easter holidays and the U.S. jobs report.

Markets in the United States ended in the green, with the larger than expected drop in weekly jobless claims helped to ease concerns ahead of Friday's jobs report for March. Equity markets will be closed when the report is released on Friday.

Investors also digested the accord reached in broad general terms between Iran and the world powers which will curtail Tehran's nuclear program for uranium enrichment.

The deal requires Iran to limit its enrichment capacity and stockpile by two-thirds, and not enrich uranium over 3.67 percent for at least 15 years. Tehran has also agreed to enrich uranium at at only one plant, while the other facilities are to be converted for other peaceful uses.

First-time claims for U.S. unemployment benefits unexpectedly decreased in the week ended March 28, with claims falling to their lowest level in two months, a Labor Department report showed Thursday.

Meanwhile, new orders for U.S. manufactured goods unexpectedly increased in February, on a jump in orders for non-durable goods more than offsetting a drop in orders for durable goods.

U.S. trade deficit narrowed much more than anticipated in February, with the value of imports registering another substantial decrease.

The benchmark S&P/TSX Composite Index closed Thursday at 15,026.62, up 84.07 points or 0.56 percent. The index scaled an intraday high of 15,070.31 and a low of 14,912.33.

On Wednesday, the index closed up 40.11 points or 0.27 percent, at 14,942.55. The index scaled an intraday high of 14,972.28 and a low of 14,878.53.

Gold futures ended lower after some upbeat economic data from the U.S. with claims for U.S. unemployment benefits unexpectedly dropping last week, to its lowest level in two months.

The Gold Index dropped 1.72 percent, with gold for April delivery shedding $7.30 or 0.6 percent to settle at $1,200.90 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Kinross Gold Corp (K.TO) shed 1.39 percent, Eldorado Gold Corp. (ELD.TO) dropped 2.56 percent, Barrick Gold Corp. (ABX.TO) fell 1.65 percent, and Yamana Gold Inc. (YRI.TO) declined 2.29 percent.

Crude oil ended lower after Iran and the world powers reached a deal in broad general terms which will curtail Tehran's nuclear program for uranium enrichment. Iran will cut its enrichment capacity and stockpile by two-thirds, and not enrich uranium over 3.67 percent for at least 15 years. Tehran has also agreed to enrich uranium at only one plant, while the other facilities are to be converted for other peaceful uses.

The Energy Index gained 1.77 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, shedding $0.95 or 1.9 percent to settle at $49.14 a barrel on the New York Mercantile Exchange Thursday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) added5.68 percent, Suncor Energy Inc. (SU.TO) moved up 3.76 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 0.59 percent. Crescent Point Energy Corp. (CPG.TO) added 2.40 percent, while Cenovus Energy Inc. (CVE.TO) gathered 1.76 percent.

Encana Corp. (ECA.TO) gained 1.05 percent, while Pacific Rubiales Energy Corp. (PRE.TO) plummeted 7.55 a share.

The Diversified Metals & Mining Index added 1.08 percent, as First Quantum Minerals Ltd. (FM.TO) gained 2.74 percent, Teck Resources (TCK.B.TO) moved up 0.94 percent, and Lundin Mining Corp. (LUN.TO) shed 0.38 percent.

The Capped Materials Index shed 0.65 percent, mainly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.86 percent and Agrium Inc. (AGU.TO) up 0.23 percent.

The heavyweight Financial Index moved up 0.22 percent, with Bank of Nova Scotia (BNS.TO) dropping 0.72 percent and Bank of Montreal (BMO.TO) gaining 0.78 percent.

National Bank of Canada (NA.TO) added 0.35 percent, Royal Bank of Canada (RY.TO) added 0.72 percent. Toronto-Dominion Bank (TD.TO) shed 0.82 percent, and Canadian Imperial Bank of Commerce (CM.TO) gathered 0.47 percent.

The Capped Health Care Index gained 0.20 percent, with Extendicare (EXE.TO) down 0.40 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) flat at $249.15 a share, and Catamaran Corp. (CCT.TO) shedding 0.89 percent.

The Capped Industrials Index gathered 0.27 percent, as Bombardier Inc. (BBD.B.TO) added 1.07 percent, and Air Canada (AC.TO) gained 1.09 percent.

The Information Technology Index added 0.87 percent, even as BlackBerry (BB.TO) advanced 1.07 percent and Constellation Software Inc. (CSU.TO) gained 3.31 percent. Sierra Wireless, Inc. (SW.TO) shed 0.19 percent, while Descartes Systems Group Inc. (DSG.TO) ended flat at $19.16 a share.

The Capped Telecommunication Index moved up 0.71 percent, with Rogers Communications Inc. (RCI.B.TO) up 0.56 percent, BCE Inc. (BCE.TO) up 0.80 percent, and TELUS Corp. (T.TO) gaining 0.81 percent.

Nobilis Health Corp. (NHC.TO) jumped 5.74 percent, after closing a $25 million debt financing facility with GE Capital, Healthcare Financial Services.

Microbix Biosystems Inc. (MBX.TO) gained 3.51 percent, after company signed an exclusive distribution agreement with Kim & Friends Inc.

Richelieu Hardware Ltd. (RCH.TO) gathered 0.47 percent, after having reported first-quarter earnings of C$0.51 per share, compared to C$0.44 per share in the previous year.

On the economic front, data from Statistics Canada showed that Canada's merchandise trade deficit narrowed to C$984 million in February from a revised C$1.5 billion in January. The shortfall was also lesser than economists' forecasts of C$1.80 billion. Canada's imports declined 0.7 percent in February, while exports were up 0.4 percent.

In other economic news, first-time claims for U.S. unemployment benefits unexpectedly decreased in the week ended March 28, with claims falling to their lowest level in two months, a report from the Labor Department showed Thursday. Initial jobless claims dropped to 268,000, a decrease of 20,000 from the previous week's revised level of 288,000. Economists expected claims to edge up to 285,000 from the 282,000 originally reported for the previous week.

A Commerce Department report on Thursday showed an unexpected increase in new orders for U.S. manufactured goods in February, with a jump in orders for non-durable goods more than offsetting a drop in orders for durable goods. Factory orders edged up 0.2 percent in February following a revised 0.7 percent decrease in January. Economists expected orders to fall by 0.4 percent compared to the 0.2 percent drop previously reported for the previous month.

A Commerce Department report on Thursday showed U.S. trade deficit to have narrowed much more than anticipated in February, with the value of imports registering another substantial decrease. U.S. trade deficit narrowed to $35.4 billion in February from a revised $42.7 billion in January. Economists expected the deficit to narrow slightly to $41.5 billion from the $41.8 billion originally reported for the previous month.

Elsewhere, the U.K construction sector expanded at a slower-than-expected pace in March, largely due to weaker growth of output and new orders, survey data from Markit Economics and the Chartered Institute of Procurement & Supply showed Thursday. Nonetheless, confidence among companies rose to the highest level in over nine years, helped by improving economic fundamentals and strong order books. The CIPS/Markit construction Purchasing Managers' Index fell to 57.8 in March from 60.1 in the previous month. It was forecast to drop to 59.8.