TSX Settles Higher On U.S. Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Tuesday, on some mixed economic data out of the U.S. with consumer confidence rising, even as concerns over China's economic growth waned. Nonetheless, geopolitical tensions between Russia and the West over Crimea continued to weigh on sentiments, with the West promising more stringent sanctions on Russia.

In economic news, a Commerce Department report showed new home sales in the U.S. pulled back in February, while a Standard & Poor's report revealed home prices in major U.S. metropolitan areas to have dipped in January. Meanwhile, consumer confidence in the U.S. has improved more than expected in March, reaching its highest level since January 2008.

Asian markets ended mixed, weighed down by concerns about a slowdown in China. U.S. and major European markets ended higher despite Germany's business confidence declining more than expected in March.

The S&P/TSX Composite Index closed Tuesday at 14,299.49, up 20.94 points or 0.15 percent. The index scaled an intraday high of 14,328.38 and a low of 14,278.55.

Crude oil ended lower ahead of the weekly official inventory data with concerns over the demand growth prospects for oil, with inventories expected to rise for the week.

The Energy Index gained 0.20 percent, with U.S. crude oil futures for May delivery, dropping $0.41 or 0.4 percent to close at $99.19 a barrel Tuesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) moving up 0.11 percent, while Enbridge Inc. (ENB.TO) slipped 0.80 percent. Canadian Natural Resources Ltd. (CNQ.TO) dropped 0.26 percent, while Encana Corp. (ECA.TO) added 0.35 percent.

Gold ended higher on some mixed economic data out of the U.S., with new home sales declining and home prices in major metropolitan areas also dropping in January.

The Global Gold Index gained 0.34 percent, with gold futures for April delivery, moving up $0.20 to close at $1,311.40 an ounce Tuesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) shed 1.96 percent, while Barrick Gold Corp. (ABX.TO) slipped 39 percent. Detour Gold Corp. (DGC.TO) surrendered 0.58 percent, while IAMGOLD Corporation (IMG.TO) added 0.50 percent. Goldcorp Inc. (G.TO) surrendered 0.38 percent, while Osisko Mining Corp. (OSK.TO) gained 2.21 percent. B2Gold Corp. (BTO.TO) added 2.71 percent.

The Capped Materials Index rose 0.88 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.85 percent.

The heavyweight Financial Index gained 0.15 percent with the Toronto-Dominion Bank (TD.TO) inching up 0.04 percent, Royal Bank of Canada (RY.TO) up 0.37 percent, and Bank of Montreal (BMO.TO) up 0.41 percent. Bank of Nova Scotia (BNS.TO) dropped 0.05 percent, while National Bank of Canada (NA.TO) dived 1.10 percent.

The Diversified Metals & Mining Index jumped 3.18 percent, with Teck Resources Limited (TCK.B.TO) up 3.25 percent, Lundin Mining Corp. (LUN.TO) up 2.01 percent, and First Quantum Minerals (FM.TO) jumping 3.98 percent. Semafo Inc. (SMF.TO) jumped 5.77 percent, while Rubicon Minerals Corp. (RMX.TO) gained 2.59 percent.

The Information Technology Index added 0.34 percent, with BlackBerry Limited (BB.TO) down 0.57 percent. According to CBC News, BlackBerry was refused when it approached Canadian regulators to find out if a buyout bid from China's Lenovo would be approved.

The Capped Industrials Index added 0.37 percent, with Bombardier Inc. (BBD.B.TO) dropping 0.72 percent.

Veresen Inc. (VSN.TO) gained 0.72 percent after announcing plans to raise C$247.5 million to part finance development costs for the proposed terminal in Oregon. Veresn said it will raise funds by selling 15 million shares.

Shares of Vicwest Inc. (VIC.TO) are down 8.67 percent after reporting a loss of C$0.21 per share for the fourth quarter, as compared to a profit of C$0.15 per share in the previous year.

The European Union and Canada successfully concluded political negotiations on a strategic partnership agreement. The deal is expected to contribute considerably to the deepening of ties in all fields of cooperation such as education, transport, energy, the Arctic, as well as science and technology, the European bloc said.

In a significant development, the United States and its closest allies on Monday cast Russia out of the Group of 8 industrialized democracies in response to the annexation of Ukraine's Crimea region. Condemning the illegal referendum held in Crimea in violation of Ukraine's constitution, the G8 warned of further sanctions on Russia.

In economic news from the U.S., the 20-City Composite Home Price Index showed home prices in major U.S. metropolitan areas on a non-seasonally adjusted basis edged down by 0.1 percent in January, matching the decrease seen in the previous month.

The 20-City Composite Home Price Index increased at an annual rate of 13.2 percent in January compared to the 13.4 percent growth seen in December. The index had been expected to rise by 13.3 percent year-over-year.

However, on a seasonally adjusted basis, the S&P/Case-Shiller 20-City Composite Home Price Index rose more than expected in January by 0.8 percent, following a 0.7 percent increase in December, a report from Standard & Poor's showed Tuesday. Economists expected an increase of 0.7 percent.

A Commerce Department report said new home sales in the U.S. fell 3.3 percent to an annual rate of 440,000 in February from the revised January rate of 455,000. Economists expected new home sales to drop 6 percent.

Meanwhile, the Conference Board said consumer confidence in the U.S. has improved much more than expected in March, jumping to 82.3 from a revised 78.3 in February, reflecting a rebound in expectations for the short-term outlook. This is the highest level the consumer confidence index has reached since January 2008. Economists expected the index to edge up to 78.4 from the 78.1 originally reported for the previous month.

From Europe, business confidence in Germany weakened for the first time in five months in March, as firms were worried about the impact of the European Union economic sanctions against Russia in the wake of the Crimean crisis. The business climate index for industry and trade dropped to 110.7 from February's 111.3, the Munich-based Ifo Institute said Tuesday. This was lower than economists' forecast of 110.9 and fell for the first since October.

Inflation in the U.K. dropped to a four-year low on lower transport prices in February, easing the squeeze on consumers' purchasing power, official data revealed Tuesday. Consumer prices rose 1.7 percent year-on-year, which was the least since October 2009, after increasing 1.9 percent in January, the Office for National Statistics said. This was the fifth monthly slowing in inflation and came in line with economists' expectations.