TSX Rallies To End Higher As Gold Shines -- Canadian Commentary

(RTTNews) - Canadian stocks pared losses to end higher on Wednesday, led mainly by gold stocks even as most global markets closed lower amid some weak eurozone industrial production data, the ongoing conflict in Ukraine and concerns over an economic slowdown in China.

In some disappointing economic news, eurozone industrial production declined unexpectedly in January due to the ongoing contraction in energy output, reflecting the fragile nature of economic recovery in the area.

The standoff over Crimea continued with leaders of the Group of Seven cautioning Russia against any attempt to annex the Ukrainian region. The West also demanded the referendum slated for Sunday be called off. The crucial referendum in Crimea seeks to get people's approval to enable the region merge with Russia, after the regional parliament voted unanimously to become part of Russia earlier.

Major European markets tumbled with weak eurozone industrial production data, the ongoing conflict in Ukraine and concerns over an economic slowdown in China dragging down stocks.

The S&P/TSX Composite Index closed Wednesday at 14,319.00, up 51.77 points or 0.36 percent. The index scaled an intraday high of 14,329.78 and a low of 14,201.18.

The Global Gold Index gained 3.09 percent, with gold futures for April delivery, the most actively traded contract, soaring $23.80 or 1.8 percent to close at $1,370.50 an ounce Wednesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) added 2.03 percent, while Barrick Gold Corp. (ABX.TO) gained 2.86 percent. Detour Gold Corp. (DGC.TO) surged 7.78 percent, while B2Gold Corp. (BTO.TO) moved up 1.52 percent. Goldcorp Inc. (G.TO) added 4.0 percent, while Osisko Mining Corp. (OSK.TO) gained 3.62 percent.

The Capped Materials Index added 1.75 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) edging up 0.55 percent.

Crude oil plummeted to a five-month low on demand growth concerns after an official weekly oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. jumped nearly three times more than expected last week. Prices also came under severe pressure on news reports of U.S. plans to release about 5 million barrels of oil from its Strategic Petroleum Reserve.

The Energy Information Administration revealed U.S. crude oil inventories to have jumped by 6.2 million barrels in the week ended March 7, while analysts expected an increase of 2.3 million barrels. Gasoline stocks unexpectedly dropped by 5.2 million barrels last week, with analysts anticipating a decline of 1.8 million barrels. Inventories of distillate, including heating fuel, dropped by 0.5 million barrels, even as analysts anticipated a decline of 0.9 million barrels.

The Energy Index shed 0.27 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, plunging $2.04 or 2.0 percent to close at $97.99 a barrel Wednesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.77 percent, while Enbridge Inc. (ENB.TO) added 0.82 percent. Crescent Point Energy Corp. (CPG.TO) jumped 3.31 percent, while Encana Corp. (ECA.TO, ECA) shed 0.90 percent. Canadian Natural Resources Ltd. (CNQ.TO) surrendered 1.43 percent.

The heavyweight Financial Index added 0.18 percent with the Toronto-Dominion Bank (TD.TO) adding 0.41 percent, Bank of Nova Scotia (BNS.TO) gaining 0.46 percent, and Royal Bank of Canada (RY.TO) inching up 0.01 percent.

The Diversified Metals & Mining Index dropped 0.47 percent, with Teck Resources Limited (TCK.B.TO) up 1.22 percent, Lundin Mining Corp. (LUN.TO) down 0.40 percent, and First Quantum Minerals (FM.TO) up 0.84 percent.

The Information Technology Index dropped 0.26 percent, with BlackBerry Limited (BB.TO) slipping 0.58 percent.

The Capped Industrials Index added 1.25 percent, with Bombardier Inc. (BBD.B.TO) gathering 2.16 percent.

In economic news, eurozone industrial output fell 0.2 percent month-on-month in January, which was the second consecutive drop, Eurostat said Wednesday. Economists expected production to expand 0.5 percent, after a revised 0.4 percent drop in December.

On a yearly basis, growth in industrial production accelerated to 2.1 percent from 1.2 percent in December. Economists had forecast output to rise 1.9 percent.

Sector-wise, energy production declined 2.5 percent as seen in December. Durable consumer goods output slipped 0.6 percent, in contrast to a 0.8 percent rise a month ago. Likewise, production of intermediate goods slipped 0.1 percent. Partially offsetting these declines, capital goods gained 0.9 percent and non-durable consumer goods rose 0.4 percent.