TSX Ends Higher As Commodity Prices Rebound -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Wednesday, as a rebound in commodity prices helped gold and energy stocks register strong gains, offsetting weakness in other sectors.

Markets in the United States ended in the red, weighed down by some soft private sector employment data and as well as a disappointing ISM manufacturing report. Investors will be watching for the U.S. jobs report for March due Friday, when equity markets will be closed for the Good Friday holiday.

The majority of the European markets ended with modest gains Wednesday, due to some positive manufacturing data. Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands.

Private sector job growth in the U.S. continued to slow in March, rising less than expected, a report from payroll processor ADP showed Wednesday.

Manufacturing activity in the U.S. saw continued growth in March, although the pace of growth slowed more than anticipated, the Institute for Supply Management said Wednesday. As well, a U.S. construction spending saw some further downside in February, after reporting a steep drop in spending in the previous month.

The benchmark S&P/TSX Composite Index closed Wednesday at 14,942.55, up 40.11 points or 0.27 percent. The index scaled an intraday high of 14,972.28 and a low of 14,878.53.

On Tuesday, the index closed down 5.95 points or 0.04 percent, at 14,902.44. The index scaled an intraday high of 14,962.83 and a low of 14,813.71.

Gold futures ended sharply higher on Wednesday, after some soft economic data from the U.S. with private sector jobs rising less than expected in March and the dollar weakening.

The Gold Index surged 5.56 percent, with gold for April delivery soaring $25.00 or 2.1 percent to settle at $1,208.70 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, Kinross Gold Corp (K.TO) jumped 5.69 percent, Eldorado Gold Corp. (ELD.TO) surged 7.57 percent, Barrick Gold Corp. (ABX.TO) soared 9.46 percent, and Yamana Gold Inc. (YRI.TO) added 5.73 percent.

Alamos Gold (AGI.TO) dropped 1.21 percent, after announcing the sale of a small portion of its exploration package at Mulatos earlier this month, to Agnico Eagle Mines for U.S.$7 million in cash and a 2% net smelter returns royalty.

Crude oil ended sharply higher on increased demand for gasoline with the U.S. Energy Information Administration weekly report showing a marked decline in gasoline stocks last week. Prices have also been impacted after Iran's nuclear program talks with the West have been extended as the sides failed to reach an agreement by Tuesday's deadline.

The Energy Index gained 1.08 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, climbing surged $2.49 or 5.2 percent to settle at $50.09 a barrel on the New York Mercantile Exchange Wednesday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) added 3.65 percent, Suncor Energy Inc. (SU.TO) moved up 0.65 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 0.67 percent. Crescent Point Energy Corp. (CPG.TO) added 3.04 percent, while Cenovus Energy Inc. (CVE.TO) gathered 1.17 percent.

Encana Corp. (ECA.TO) gained 0.99 percent, while Pacific Rubiales Energy Corp. (PRE.TO) jumped 9.60 a share.

The Diversified Metals & Mining Index added 0.90 percent, as First Quantum Minerals Ltd. (FM.TO) gained 2.22 percent, Teck Resources (TCK.B.TO) fell 2.24 percent, and Lundin Mining Corp. (LUN.TO) moved up 1.96 percent.

The Capped Materials Index jumped 2.72 percent, mainly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.39 percent and Agrium Inc. (AGU.TO) down 0.47 percent.

The heavyweight Financial Index dipped 0.17 percent, with Bank of Nova Scotia (BNS.TO) inching up 0.02 percent and Bank of Montreal (BMO.TO) shedding 0.14 percent.

National Bank of Canada (NA.TO) fell 0.74 percent, Toronto-Dominion Bank (TD.TO) gained 0.66 percent, and Canadian Imperial Bank of Commerce (CM.TO) fell 0.38 percent.

Royal Bank of Canada (RY.TO) shed 0.13 percent. The company announced entering into a definitive agreement to sell RBC Royal Bank (Suriname) N.V. to Republic Bank Limited. Financial terms of the transaction were not disclosed.

The Capped Health Care Index gained 0.69 percent, with Extendicare (EXE.TO) is up 0.20 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) down 0.42 percent, and Catamaran Corp. (CCT.TO) shedding 0.37 percent.

The Capped Industrials Index surrendered 0.45 percent, as Bombardier Inc. (BBD.B.TO) added 0.80 percent, and Air Canada (AC.TO) dipped 3.71 percent.

The Information Technology Index added 0.16 percent, even as BlackBerry (BB.TO) dropped 0.53 percent. Sierra Wireless, Inc. (SW.TO) shed 0.67 percent, while Descartes Systems Group Inc. (DSG.TO) moved up 0.31 percent.

The Capped Telecommunication Index moved up 0.14 percent, with Rogers Communications Inc. (RCI.B.TO) up 0.85 percent, BCE Inc. (BCE.TO) down 0.32 percent, and TELUS Corp. (T.TO) losing 0.02 percent.

Keyera (KEY.TO) advanced 3.94 percent. The company announced a 50-50 joint venture with Kinder Morgan Inc. to build the Base Line Terminal.

Kingsway Financial (KFS.TO) gained 2.79 percent, after having sold its subsidiary, Assigned Risk Solutions Ltd. , to National General Holdings Corp. for $47 million.

On the economic front, private sector job growth in the U.S. continued to slow in March, a report from payroll processor ADP showed Wednesday. ADP said private sector employment climbed by 189,000 jobs in March following a slightly upwardly revised increase of 214,000 jobs in February. Economists had expected an increase of about 230,000 jobs compared to the addition of 212,000 jobs originally reported for the previous month.

Manufacturing activity in the U.S. saw continued growth in March, a report from the Institute for Supply Management indicated Wednesday, although the pace of growth slowed more than anticipated. The ISM said its purchasing managers index dropped to 51.5 in March from 52.9 in February. While a reading above 50 indicates continued growth in manufacturing activity, economists had expected the index to show a more modest drop to 52.5.

A Commerce Department report on Wednesday showed U.S. construction spending saw some further downside in February, after reporting a steep drop in spending in the previous month. Construction spending edged down 0.1 percent to an annual rate of $967.2 billion in February after tumbling 1.7 percent to a revised $967.9 billion in January. The modest drop was in line with economist estimates.

China's manufacturing sector slipped into contraction in March, the latest report from HSBC showed on Wednesday, with a PMI score of 49.6. That was higher than the preliminary reading of 49.2, although it was down from 50.7 in February. It also moved below the boom-or-bust line of 50 that separates expansion from contraction.

Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands, final data from Markit Economics showed Wednesday. The Purchasing Mangers' Index rose to a 10-month high of 52.2 in March from 51 in February. The flash score was 51.9.

German manufacturing growth in March was faster than estimated earlier, marking the strongest improvement in eleven months, survey data from Markit Economics showed Wednesday. The Markit/BME Germany Manufacturing Purchasing Managers' Index climbed to 52.8 from 51.1 in February. The flash reading for the index was 52.4, released on March 24.

British manufacturing sector expanded at the fastest pace in eight months during March as orders and production growth gathered momentum. The Purchasing Managers' Index rose to 54.4 from 54 in February, which was revised down from 54.1, survey results from Markit Economics and the Chartered Institute of Procurement & Supply showed Wednesday. The latest PMI reading was in line with economists' expectations.

The French manufacturing sector continued to contract in March but at a slower than initially estimated pace, final data from Markit revealed Wednesday. The Purchasing Managers' Index came in at 48.8 in March, up from 47.6 in February. The flash score was 48.2.

U.K. labor productivity declined in the fourth quarter, while labor costs rose moderately, data from the Office for National Statistics showed Wednesday. Labor productivity as measured by output per hour dropped 0.2 percent in the fourth quarter from prior three months, when it grew 0.5 percent.