TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session on Thursday, tracking rising global markets, after some upbeat initial claims for unemployment benefits from the U.S. and the Federal Reserve's stand on interest rate hikes yesterday.

The market opened on a buoyant note with stocks extending previous session's gains amid hopes the Federal Reserve will not hike rates anytime soon.

Gains in European markets on the back of a surprise decision by the Swiss National Bank to cut interest rates and an encouraging report on German business sentiment contributed as well to the uptick.

The benchmark S&P/TSX Composite Index closed Thursday at 14,346.75, up 132.87 points or 0.93 percent. The index scaled an intraday high of 14,439.06 and a low of 13,193.22.

On Tuesday, the index ended at 14,213.39, up 351.87 points or 2.54 percent, on some positive sentiment as investors viewed the Federal Reserve's monetary policy statement as putting off an anticipated interest rate hike until late next year.

Crude oil ended over 4 percent lower on renewed worries over the oversupply situation amid demand growth concerns, even as reports on Wednesday showed U.S. stockpiles to have declined less than expected last week.

A report from the U.S. Energy Information Administration on Wednesday showed U.S. crude oil inventories to have dropped by 0.85 million barrels in the week ended December 12, while analysts expected a decline of 2.36 million barrels.

The Energy Index gained 1.22 percent, although U.S. crude oil futures for January delivery plummeted $2.36 or 4.2 percent to close at $54.11 a barrel on the Nymex Thursday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) surged 10.37 percent, Canadian Natural Resources Limited (CNQ.TO) added 1.36 percent, Suncor Energy Inc. (SU.TO) gained 1.18 percent, Pacific Rubiales Energy Corp. (PRE.TO) gathered 3.83 percent, and Cenovus Energy Inc. (CVE.TO) jumped 4.07 percent.

Imperial Oil Limited (IMO.TO) shed 0.08 percent, Crescent Point Energy Corp. (CPG.TO) added 2.11 percent, and Enbridge Inc. (ENB.TO) moved up 1.27 percent. Baytex Energy Corp. (BTE.TO) jumped 5.98 percent, while Talisman Energy Inc. (TLM.TO) moved up 1.24 percent. Encana Corporation (ECA.TO) added 2.47 percent, while Tourmaline Oil Corp. (TOU.TO) dropped 3.47 percent.

Gold futures ended a tad higher despite a strong dollar, after some upbeat jobs data from the U.S. showed initial claims for unemployment benefits to have declined more than expected.

The Global Gold Index jumped 4.27 percent, with gold for February delivery inching up $0.30 to settle at $1,194.80 an ounce on the New York Mercantile Exchange Thursday.

In the gold space, Kinross Gold Corp. (K.TO) jumped 7.20 percent, Agnico Eagle Mines Limited (AEM.TO) jumped 6.48 percent, Goldcorp Inc. (G.TO) gathered 4.57 percent, Eldorado Gold Corp. (ELD.TO) added 2.70 percent, and Franco-Nevada Corp. (FNV.TO) gathered 3.44 percent.

Barrick Gold Corp. (ABX.TO) gained 2.35 percent after announcing the suspension of operations at the Lumwana copper mine in Zambia following the passage of legislation that raises the royalty rate on the country's open pit mining operations to 20 percent from six percent.

Timmins Gold Corp. (TMM.TO) added 1.40 percent, after entering into an agreement with Goldgroup Mining Inc. (GGA.TO) to purchase 100% of the Caballo Blanco Gold Project in Veracruz State. Goldgroup Mining Inc. shed 2.78 percent.

The Capped Materials Index added 2.07 percent, mostly on sharply rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.30 percent.

The heavyweight Financial Index gained 0.34 percent, as National Bank of Canada (NA.TO) added 2.50 percent, Toronto-Dominion Bank (TD.TO) advanced 0.59 percent, and Bank of Nova Scotia (BNS.TO) dropped 0.07 percent.

Royal Bank of Canada (RY.TO) gained 0.43 percent, while Bank of Montreal (BMO.TO) added 0.49 percent. Canadian Imperial Bank of Commerce (CM.TO) dipped 0.03 percent.

Manulife Financial Corp. (MFC.TO) added 1.24 percent and Power Corporation of Canada (POW.TO) gained 1.31 percent.

The Healthcare Index added 0.46 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 1.81 percent, Catamaran Corp. (CCT.TO) dropped 0.30 percent, and Extendicare Inc. (EXE.TO) also fell 0.30 percent.

The Diversified Metals & Mining Index moved up 0.63 percent, as Teck Resources Limited (TCK.B.TO) gained 3.72 percent, First Quantum Minerals Ltd. (FM.TO) dropped 0.87 percent, Lundin Mining Corp. (LUN.TO) added 1.58 percent, and Finning International Inc. (FTT.TO) gathered 1.82 percent.

Among other mining stocks, HudBay Minerals Inc. (HBM.TO) added 0.58 percent, Sherritt International Corp. (S.TO) gained 3.14 percent, Capstone Mining Corp. (CS.TO) dropped 0.28 percent, Turquoise Hill Resources Ltd. (TRQ.TO) fell 1.93 percent, and Major Drilling Group International Inc. (MDI.TO) moved up 0.36 percent.

The Capped Industrials Index gained 0.36 percent, with Bombardier Inc. (BBD.B.TO) inching up 0.12 percent, Canadian National Railway Company (CNR.TO) up 0.14 percent, and Air Canada (AC.TO) moving up 1.89 percent.

Among other industrial stocks, Finning International Inc. (FTT.TO) gained 1.82 percent, CAE Inc. (CAE.TO) added 1.89 percent, MacDonald, Dettwiler and Associates Ltd. (MDA.TO) dipped 0.22 percent.

The Information Technology Index gathered 0.74 percent, with BlackBerry Ltd. (BB.TO) up 0.82 percent. The smartphone maker has announced the launch of BlackBerry Classic in Singapore.

Among other tech stocks, Descartes Systems Group Inc. (DSG.TO) dropped 0.64 percent, Avigilon Corp. (AVO.TO) gained 3.46 percent, Open Text Corp. (OTC.TO) added 0.21 percent, and Sandvine Corp. (SVC.TO) advanced 1.76 percent.

The Capped Telecommunication Index shed 0.27 percent, with TELUS Corp. (T.TO) down 1.15 percent, Rogers Communications Inc. (RCI.B.TO) dipping 0.16 percent, and (BCE.TO) adding 0.75 percent.

The Consumer Staples Index jumped 2.66 percent, as Alimentation Couche-Tard Inc. (ATD.B.TO) surged 9.12 percent after signing an agreement to buy The Pantry Inc. (PTRY) in an all-cash transaction valued at $36.75 per share, with a total enterprise value of approximately $1.7 billion including debt.

Meanwhile, Cott Corporation (BCB.TO) gained 2.35 percent, Maple Leaf Foods Inc. (MFI.TO) added 1.78 percent, Empire Company Limited (EMP.A.TO) dipped 0.02 percent, and The North West Company Inc. (NWC.TO) moved up 1.5 percent.

Saputo Inc. (SAP.TO) added 0.54 percent, after revealing plans to sell its Bakery Division, Saputo Bakery Inc, to Canada Bread Company Limited, a subsidiary of Grupo Bimbo S.A.B. de C.V (GRBMF.PK), for C$120 million in cash.

In economic news from the U.S., a Labor Department report showed initial jobless claims to have declined by 6,000 to 289,000 in the week ended December 13. Economists expected claims at 295,000, up from previous week's unrevised figure of 294,000.

A report from the Federal Reserve Bank of Philadelphia showed continued increase in regional manufacturing activity in December, although the pace of growth in the sector slowed substantially. The Philly Fed said its diffusion index for current activity tumbled to 24.5 in December from 40.8 in November. Economists expected the index to drop to a reading of 25.0.

Meanwhile, the Conference Board 's leading economic index rose in line with expectations, moving up by 0.6 percent in November following a downwardly revised 0.6 percent increase in October.

Meanwhile, German business confidence improved to a score of 105.5, rising for the second straight month to a 4-month high as expectations of firms brightened while their current assessment remained unchanged in December, a survey by Ifo institute showed.

U.K. retail sales growth accelerated unexpectedly in November as consumers boosted their spending on "Black Friday" a day after Thanksgiving, marking the start of the holiday season. Retail sales volume including automotive fuel increased 1.6 percent from October, the Office for National Statistics said Thursday. This was the biggest monthly rise since last December. The monthly growth rate was expected to slow to 0.4 percent from 1 percent in October.

From Europe, the Swiss National Bank decided in an unscheduled meeting to cut interest rate to -0.25 percent.