TSX Ends Lower On U.S. Debt Ceiling Crisis - Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Wednesday, tracking declining global equity markets, as investors continued to speculate over a possible government breakdown in Washington linked to federal budget and debt ceiling. Nevertheless, the losses were limited due to some upbeat economic data out of the U.S., even as worries over the Federal Reserve next move on its monetary stimulus program persisted.

The U..S. Government will reach its borrowing limit of $16.7 trillion next month. The debt ceiling has to be raised by Congress, which requires a consensus between the White House and the Republican lawmakers.

The S&P/TSX Composite Index closed Wednesday at 12,836.71, down 12.18 points or 0.09 percent. The index touched an intraday high of 12,913.57 and a low of 12,832.52.

The Diversified Metals & Mining Index gained 1.14 percent, with Teck Resources Limited (TCK.B.TO) gaining 1.35 percent and Lundin Mining Corp. (LUN.TO) surrendered 0.43 percent. Osisko Mining Corp. (OSK.TO) jumped 6.50 percent.

The Capped Materials Index added 1.37 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) edging up 0.15 percent.

Gold futures snapped a three day loss to end higher Wednesday, on safe haven appeal after the dollar weakened against a basket of major currencies and investors continued to fret over a possible government shutdown in Washington linked to budget and debt ceiling.

The Global Gold Index gained 2.22 percent, with gold futures for December delivery gaining $19.90 or 1.5 percent to close at $1,336.20 an ounce Wednesday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) gained 0.47 percent, while Yamana Gold Inc. (YRI.TO) gathered 2.81 percent. B2Gold Corp. (BTO.TO) added 2.31 percent, while Goldcorp Inc. (G.TO) moved up 1.63 percent. Kinross Gold Corporation (K.TO) dipped 2.53 percent, while Eldorado Gold Corp. (ELD.TO) gained 1.01 percent.

U.S. crude oil dropped ended lower for a fifth straight session Wednesday, with supply concerns easing with Middle East problems improving. With easing geopolitical tensions in the Middle East, and Iran and the U.S. on a dialogue, supply concerns have significantly faded.

Latest data from the Energy Information Administration showed U.S. crude oil inventories to have moved up 2.6 million barrels and gasoline stocks added 0.20 million barrels in the week ended September 20. Analysts expected U.S. crude oil inventories to drop by 1.1 million barrels, while gasoline stocks were anticipated to add 0.1 million barrels last week.

The Energy Index moved up 0.09 percent, with U.S. crude oil futures for November delivery dropping $0.47 or 0.5 percent to close at $102.66 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) gained 0.84 percent, Talisman Energy Inc. (TLM.TO) jumped 3.64 percent, and Suncor Energy Inc.(SU.TO) added 1.26 percent. Enbridge Inc. (ENB.TO) gained 0.60 percent, while Imperial Oil Limited (IMO.TO) dropped 0.11 percent.

Meanwhile, Canacol Energy Ltd. (CNE.TO) lost 3.39 percent after recording a net loss of $120.6 million for fiscal year 2013, compared to net income of $18.6 million a year ago.

The Financial Index slipped 0.10 percent with Bank of Montreal (BMO.TO) up 0.13 percent and Manulife Financial Corp. (MFC.TO) up 0.41 percent. The Bank of Nova Scotia (BNS.TO) shed 0.08 percent, while Toronto-Dominion Bank (TD.TO) gathered 0.12 percent. Royal Bank of Canada (RY.TO) shed 0.35 percent, while National Bank of Canada (NA.TO) gained 0.46 percent.

The Information Technology Index shed 1.30 percent, with smartphone maker BlackBerry Limited (BB.TO) plunging 5.32 percent.

The Capped Industrials Index dropped 0.74 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 1.44 percent.

In economic news, the U.S. Commerce Department said durable goods orders edged up by 0.1 percent in August after tumbling by a revised 8.1 percent in July. Economists expected orders to drop by 0.5 percent compared to the 7.4 percent decrease reported for the previous month. However, excluding a 0.7 percent increase in orders for transportation equipment, durable goods order dipped by 0.1 percent in August compared to a 0.5 percent drop in July.

In a separate report, the U.S. Commerce Department said new home sales jumped 7.9 percent to an annual rate of 421,000 in August from the revised July rate of 390,000. Economists expected new home sales to climb to 420,000 from the 394,000 originally reported for the previous month.

From the eurozone, German consumer sentiment will likely continue to improve in October, reports citing results of a survey published by GfK said. The headline consumer confidence index for October scored 7.1, up from September's revised reading of 7. Economists had forecast the index to score 7, higher than the previous month's initial reading of 6.9.