TSX Rises As Global Tensions Ease -- Canadian Commentary

(RTTNews) - Canadian stocks are moving higher Monday late morning, extending previous session's solid gains, amid slightly easing geopolitical worries.

Positive U.S. and European markets are also contributing to the upmove.

Worries about the situation in Ukraine eased a bit notwithstanding reports that Ukrainian forces fired rockets to defy pro-Russian separatists on Sunday. Russia had announced over the weekend that it had completed military exercises near the border.

Meanwhile, the situation in Gaza is also calm with a fresh 3-day ceasefire coming into effect. According to reports, Egypt is mediating talks between Israeli and Palestinian negotiators.

The benchmark S&P/TSX Composite Index is up 91.26 points or 0.60 percent at 15,287.57. On Friday, the index ended up 77.88 points or 0.52 percent at 15,196.31.

Consumer staples, financial, industrial and miners are moving up.

The Financial Index is up 0.5 percent. Among big six banks, Toronto-Dominion Bank (TD.TO) is up 1.3 percent, while the others are up 0.4 to 0.8 percent.

The Diversified Metals & Mining Index is up more than 1 percent. Major Drilling Group International Inc. (MDI.TO) is rising 3.7 percent, Sherritt International Corporation (S.TO) is advancing 2.7 percent and Nevsun Resources Ltd. (NSU.TO) is moving up 2.3 percent. Teck Resources Limited (TCK.B.TO) and Lundin Mining Corporation (LUN.TO) are gaining 1.5 percent and 1.3 percent, respectively.

The Industrials Index is up 1.1 percent, with Canadian National Railway Company (CNR.TO), SNC-Lavalin Group Inc. (SNC.TO), Bombardier Inc. (BBD.B.TO), Finning International Inc. (FTT.TO), Stantec Inc. (STN.TO) and MacDonald, Dettwiler and Associates Ltd. (MDA.TO) are gaining 1.3 to 3 percent.

The Consumer Staples Index is moving up 1.3 percent. Alimentation Couche-Tard Inc. (ATD.B.TO), Loblaw Companies Limited (L.TO), Empire Company Limited (EMP.A.TO), George Weston Limited (WN.TO), Jean Coutu Group (PJC) Inc. (PJC.A.TO) and Maple Leaf Foods Inc. (MFI.TO) are advancing 1 to 3 percent.

Pacific Rubiales Energy Corp. (PRE.TO) is moving up 2.7 percent. Legacy Oil + Gas is adding 2.1 percent. Among other stocks in the energy sector, Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Husky Energy (HSE.TO) and ARC Resources (ARX.TO) are gaining 0.5 to 1.2 percent.

Gold stocks are turning in a mixed performance. Yamana Gold (YRI.TO) is up 1.6 percent. Airliner stock Air Canada (AC.B.TO) is up 1.3 percent.

Ensign Energy Services Inc. (ESI.TO) reported second quarter net earnings of C$15.2 million or C$0.10 per share, up from C$3.3 million or C$0.02 per share a year ago. Adjusted net earnings totaled C$14.4 million or C$0.09 per share. The stock is lower by about 1.2 percent.

Pembina Pipeline Corp. (PPL.TO) shares are up 2.7 percent after the company reported net income for the second quarter of C$77 million or C$0.21 per share, compared to C$93 million or C$0.30 per share for the year-ago quarter.

TearLab Corporation (TLB.TO) is moving up 4.3 percent after announcing that second quarter net revenues were up 42 percent to $5.0 million, from $3.5 million for the same period in 2013.

In commodities, crude oil futures for September are up $0.69 or 0.71 percent at $98.34 a barrel, amid concerns over possible supply disruptions following U.S. airstrikes on Iraq.

Natural gas for September is up $0.015 or 0.45 percent at $3.941 per million btu.

Gold futures for December are down $2.10 or 0.16 percent at $1,308.90 an ounce.

Silver for September is up $0.0041 or 0.21 percent at $19.982 an ounce. Meanwhile, copper is up marginally at $3.175 per pound.

In economic news, a report from the Canada Mortgage and Housing Corporation showed Canadian housing starts to have risen unexpectedly to 200,100 units in July, up from 198,700 units in the preceding month.

On the economic front from the U.S., investors will be looking ahead to some Fed speeches and data on U.S. retail sales and consumer sentiment during this week. The U.S. Commerce Department's data on business inventories, data on import and export prices from the Labor Department are due.

Also due this week are the Federal Reserve's industrial production report for July, the results of New York Federal Reserve's manufacturing survey and weekly jobless claims data.