TSX Ends A Tad Higher, Weak Commodities Weigh -- Canadian Commentary

(RTTNews) - Canadian stocks moved up to end a shade higher on Tuesday, tracking rising global equity markets even as energy and mining stocks turned in some weak performances with prices of both oil and precious metals sinking.

Markets in Europe are gained ground after reports that eurozone officials are considering extending Greece's bailout program by up to six months. It is rumored the European Commission will reportedly offer such a proposal amid indications that the new Greek government is softening its rhetoric behind the scenes.

Greece's bailout program offered by the European Commission, the European Central Bank and the IMF is set to expire on February 28. Greece has tried to renegotiate the bailout terms, but the EU has rejected the request indicating the bailout conditions as generous.

Markets in the United States ended in positive territory after experiencing some volatility in early trading, due to optimism over the Greek debt negotiations.

The benchmark S&P/TSX Composite Index closed Tuesday at 15,112.52, up 11.82 points or 0.08 percent. The index scaled an intraday high of 15,147.73 and a low of 14,977.18.

On Friday, the index closed down 41.00 points or 0.27 percent, at 15,083.92. The index scaled an intraday high of 15,204.45 and a low of 15,025.64.

Crude oil ended sharply lower ahead of the official weekly U.S. crude stockpile report from the Energy Information Administration due Wednesday. Oil prices fell following three straight days of gains. The reversal was triggered by an International Energy Agency report cautioning that global supplies will continue to rise.

The IEA said OPEC's oil inventories may come close to the all-time high of 2.83 billion barrels in the middle of 2015. OPEC is refusing to consider a cut in production, hoping to cripple non-OPEC competition with low oil prices.

The Energy Index slumped 2.47 percent with U.S. crude oil futures for March delivery, plunging $2.84 or 5.3 percent to settle at $50.02 percent a barrel on the New York Mercantile Exchange Tuesday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) tanked 16.43 percent, Canadian Oil Sands (COS.TO) fell 4.07 percent, and Encana Corp. (ECA.TO) shed 1.85 percent.

Canadian Natural Resources Limited (CNQ.TO) fell 2.13 percent, while Cenovus Energy Inc. (CVE.TO) dropped 1.53 percent. Crescent Point Energy (CPG.TO) shed 2.58 percent, and Suncor Energy (SU.TO) surrendered 2.24 percent.

Talisman Energy (TLM.TO) gained 1.91 percent, after posting a fourth-quarter net loss of $1.6 billion or $1.54 per share, as compared to a loss of $1.0 billion or $0.98 per share in the prior-year period. Analysts expected the company to report a loss of $0.03 per share.

The Diversified Metals & Mining Index plunged 3.52 percent, as First Quantum Minerals Ltd. (FM.TO) dropped 3.04 percent, Teck Resources Limited (TCK.B.TO) surrendered 4.46 percent, and HudBay Minerals (HBM.TO) edged down 1.70 percent. Finning International Inc. (FTT.TO) dropped 0.52 percent.

Gold futures ended lower as investors opted for the riskier equity assets with most global markets trending higher, even as investors continued to monitor developments in Greece.

The Global Gold Index dropped 1.19 percent, with gold for April delivery shedding $9.30 or 0.8 percent to settle at $1,232.20 percent on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) shed 0.34 percent, Kinross Gold Corp. (K.TO) surrendered 1.69 percent, and Barrick Gold Corp .(ABX.TO) fell 1.67 percent.

Yamana Gold Inc. (YRI.TO) dropped 1.54 percent, Eldorado Gold Corp. (ELD.TO) dived 3.46 percent, and B2Gold Corp. (BTO.TO) shed 4.31 percent.

The Capped Materials Index fell 0.97 percent, mostly on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.28 percent and Agrium Inc. (AGU.TO) up 1.32 percent.

The heavyweight Financial Index dipped 0.06 percent, as Bank of Montreal (BMO.TO) fell 0.14 percent, National Bank of Canada (NA.TO) dived 1.84 percent, Royal Bank of Canada (RY.TO) moved up 0.03 percent, and Toronto-Dominion Bank (TD.TO) added 0.07 percent.

Bank of Nova Scotia (BNS.TO) inched up 0.05 percent, while Canadian Imperial Bank of Commerce (CM.TO) dropped 0.48 percent.

The Capped Industrials Index advanced 0.82 percent, as Bombardier Inc. (BBD.B.TO) gained 1.75 percent, Air Canada (AC.TO) climbed 3.67 percent, Canadian National Railway Company (CNR.TO) added 0.96 percent, and Canadian Pacific Railway Limited (CP.TO) moved up 1.79 percent.

The Information Technology Index jumped 2.21 percent, as BlackBerry Limited (BB.TO) adding 1.30 percent, Constellation Software (CSU.TO) gained 2.74 percent, and Descartes Systems Group Inc. (DSG.TO) down 0.32 percent.

The Healthcare Index climbed 1.76 percent, even as Valeant Pharmaceuticals International, Inc. (VRX.TO) jumped 3.73 percent and Catamaran Corp. (CCT.TO) gathered 1.01 percent.

The Capped Telecommunication Index added 1.08 percent, with BCE adding 1.61 percent and Rogers Communications Inc. (RCI.B.TO) up 1.25 percent.

Uni-Select (UNS.TO) soared 15.12 percent after agreeing to sell most of the assets of Uni-Select USA Inc and Beck/Arnley Worldparts Inc to an affiliate of Icahn Enterprises L.P. for about $340 million.

Great-West Lifeco (GWO.TO) added 0.65 percent, after agreeing to buy Legal & General International (Ireland) Ltd. for an undisclosed amount.

On the economic front, a Commerce Department report on Tuesday showed U.S. wholesale inventories edged slightly higher in December, after having reported a notable increase last month. Wholesale inventories inched up by 0.1 percent in December after climbing by 0.8 percent in November. Economists expected inventories to edge up by 0.2 percent.

Chinese inflation slowed to a five-year low in January on easing food inflation, providing space for the central bank to adjust monetary policy to support weakening economic growth. Inflation eased more-than-expected to 0.8 percent in January from 1.5 percent in December, the National Bureau of Statistics said Tuesday. This was the lowest since November 2009. The annual rate was seen at 1 percent.

Producer prices in China witnessed the biggest fall since late 2009, slipping 4.3 percent year-on-year following a 3.3 percent drop a month ago, exceeding the 3.8 percent drop economists expected.

U.K. industrial production declined more-than-expected in December as maintenance work in the North Sea fields dragged oil output, while the manufacturing sector managed to expand, albeit at a slower pace. Industrial production fell 0.2 percent from the prior month, after staying flat in November, the Office for National Statistics said Tuesday. It was expected to fall by 0.1 percent.

Meanwhile, unemployment rate across member nations of the Organization for Economic Cooperation and Development dropped to 7.1 percent in December from 7.2 percent in November. In the euro area, the jobless rate slid marginally to 11.4 percent from 11.5 percent in November. The unemployment rate in the United States declined to 5.6 percent from 5.8 percent.

French industrial output recovered at a stronger than expected pace in December, data from the statistical office Insee showed Tuesday. Industrial production advanced 1.5 percent in December from November, when it was down 0.2 percent. Economists had forecast industrial output to grow only 0.3 percent.