TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Wednesday, led mostly by resource stocks on cues from the U.S. and European markets. Investors also reacted positively to a slew of Canadian earnings and merger news, with added impetus after release of the minutes from the U.S. Federal Reserve's April meeting.

The minutes from the U.S. Federal Reserve's April policy meet showed little clarity as to when the Fed would likely hike its benchmark interest rate from the current near zero level.

The minutes said discussions about when to raise interest rates do not mean that a hike is imminent. In April, the Fed kept its benchmark rate unchanged at historic low levels near zero and tapered quantitative easing (QE3) by another $10 billion.

Before voting on that action, policy makers examined "several approaches" for tightening but have not decided on the appropriate mix of tools to wind down its unprecedented support for the U.S. economy.

Energy stocks moved up, tracking higher crude oil prices. Financial and healthcare stocks were the other notable gainers, while gold stocks turned in a mixed performance.

The S&P/TSX Composite Index closed Wednesday at 14,649.86, up 124.67 points or 0.86 percent. The index scaled an intraday high of 14,650.25 and a low of 14,525.19.

On Tuesday, the index ended slightly higher led by resource stocks, while tracking corporate news and earnings reports after an extended weekend.

The Capped Healthcare Index gained 0.71 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 0.62 percent, Catamaran Corp. (CCT.TO) up 2.25 percent, and Extendicare Inc. (EXE.TO) up 0.71 percent.

Crude oil settled at a one-month high after an official weekly oil report from the Energy Information Administration showed a massive, more-than-expected drop in U.S. crude oil stockpiles.

Data from the U.S. Energy Information Administration earlier Wednesday showed U.S. crude oil inventories to have dropped 7.20 million barrels in the week ended May 16, while analysts expected a modest decline of 0.3 million barrels. Stockpiles aggregated 391.3 million barrels, up from the earlier week's total of 398.5 million barrels.

Gasoline stocks rose by 1.0 million barrels last week, while analysts anticipated an increase of 0.15 million barrels. Inventories of distillate, including heating fuel, increased 3.4 million barrels, even as analysts anticipated a decrease of 0.25 million barrels.

The Energy Index jumped 1.47 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, surging $1.74 or 1.7 percent to close at $104.07 a barrel Wednesday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) gained 2.70 percent, while Canadian Oil Sands Limited (COS.TO) dropped 0.92 percent. Husky Energy Inc. (HSE.TO) gained 1.14 percent, and Canadian Natural Resources Ltd. (CNQ.TO) added 2.19 percent. Nonetheless,

Baytex Energy Corp. (BTE.TO) shares gained 1.34 percent after announcing that the shareholders of Australia's Aurora Oil & Gas Limited (AEF.TO) have approved the agreement for Aurora to be acquired by Baytex, through its subsidiary Baytex Energy Australia Pty Ltd. Baytex will buy Aurora shares for a total price of C$2.8 billion. Meanwhile, Aurora Oil & Gas Limited gained 2.24 percent.

Gold futures ended lower ahead of the U.S. Federal Reserve's minutes of its April policy meet, while tracking rising global equity markets and a strengthening dollar.

The Global Gold Index added 0.49 percent, with gold futures for June delivery gaining $6.50 or 0.5 percent to close at $1,288.10 an ounce Wednesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 1.22 percent, Osisko Mining Corp. (OSK.TO) up 0.87 percent, Barrick Gold Corp. (ABX.TO) up 0.94 percent, and Agnico Eagle Mines Limited (AEM.TO) up 0.63 percent.

The Capped Materials Index gathered 0.26 percent, although Potash Corp. of Saskatchewan Inc. (POT.TO) slipped 0.37 percent.

The Financial Index added 0.97 percent with the Toronto-Dominion Bank (TD.TO) up 0.66 percent, Royal Bank of Canada (RY.TO) up 1.21 percent, The Bank of Nova Scotia (BNS.TO) up 0.48 percent, and Bank of Montreal (BMO.TO) up 0.94 percent. Canadian Imperial Bank of Commerce (CM.TO) added 0.97 percent.

The Diversified Metals & Mining Index added 0.71 percent, with Lundin Mining Corp. (LUN.TO) up 1.40 percent, First Quantum Minerals Ltd. (FM.TO) up 1.19 percent, and Teck Resources Limited (TCK.B.TO) up 0.77 percent.

The Information Technology Index gathered 1.02 percent, with BlackBerry Limited (BB.TO) up 1.14 percent, Constellation Software Inc (CSU.TO) up 2.00 percent, and Celestica Inc. (CLS.TO) up 2.22 percent.

Avigilon Corp. (AVO.TO) dropped 1.89 percent.

The Capped Industrials Index gained 0.79 percent, although Bombardier Inc. (BBD.B.TO) dropped 1.02 percent and Air Canada (AC.B) slipped 2.59 percent. CAE Inc. (CAE.TO) gained 1.29 percent, while Canadian Pacific Railway Limited (CP.TO) added 0.99 percent.

Sears Canada Inc. (SCC.TO) shed 1.50 percent after reporting a first-quarter net loss of C$75.2 million or C$0.74 per share, compared to a net loss of $31.2 million or C$0.31 per share last year.

Rio Alto Mining Ltd (RIO.TO) plummeted 7.51 percent after revealing it would buy Sulliden Gold Corp Ltd (SUE.TO) for about C$300 million to create a leading mid-tier gold producer with a strong portfolio of assets in Peru. Sulliden Gold Corporation Ltd soared 33.33 percent.

In economic news, eurozone's consumer confidence rose more-than-expected in May to its highest level in nearly seven years, preliminary figures from the European Commission showed Wednesday. The consumer confidence index for the 18 nations came in at -7.1 as compared to -8.6 in April. Economists had forecast a score of -8.3.

British retail sales volume, including automotive fuel, grew 1.3 percent month-on-month in April, more than double the 0.5 percent rise in March, the Office for National Statistics said. The growth rate was forecast to ease to 0.4 percent from the originally estimated 0.1 percent rise. Growth in sales excluding automotive fuel accelerated to 1.8 percent from 0.1 percent, exceeding economists' consensus of 0.5 percent rise.

Meanwhile, the Bank of Japan left its monetary policy unchanged on Wednesday and raised its assessment of capital expenditure as the economy is expected to withstand the impact of sales tax hike.

Elsewhere, China's economy added 4.73 million jobs in the first four months of 2014, which was higher by 30,000 from the same period last year, the Chinese Ministry of Human Resources and Social Security said Wednesday.