TSX Ends Higher On Global Cues, Commodities - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Tuesday, on cues from global equity markets with rising commodity prices shoring up energy and mining shares. Risk appetite improved with the approval of the aid package to Greece and the earnings season kicking off with Alcoa reporting better-than expected results.

Alcoa, Inc. (AA), the largest U.S. aluminum producer, Monday said its second-quarter adjusted earnings improved from last year, while topping analysts' estimate. Results for the quarter were helped by productivity gains across all business segments and record performance in Engineered Products and Solutions.

Eurozone finance ministers on Monday approved a tranche of 3 billion euros aid package to Greece in two lots, but on stringent conditions to restructure the economy. The first tranche of 2.5 billion euros will be paid this month and the remaining 0.5 billion euros in October.

Meanwhile, the International Monetary Fund on Tuesday slashed its growth forecast for a fifth consecutive time citing slowing growth in the emerging markets and lingering risks, mainly from the eurozone crisis.

The S&P/TSX Composite Index closed Tuesday at 12,297.09, up 88.22 points or 0.72 percent. The index touched an intraday high of 12,298.67 and a low of 12,203.46.

The Global Gold Index gained 0.88 percent, with gold futures for August delivery gaining $11.00 or 0.9 percent to close at $1,245.90 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) shed 0.31 percent, while Goldcorp Inc. (G.TO) gained 2.25 percent. IAMGOLD Corp. (IMG.TO) edged up 0.48 percent, while Barrick Gold Corp. (ABX.TO) added 0.55 percent. Kinross Gold Corp. (K.TO) dropped 0.82 percent, while B2Gold Corp. (BTO.TO) added 1.69 percent.

Allied Nevada Gold Corp. (ANV.TO) gained 2.82 percent after announcing the appointment of Randy Buffington as President and CEO, effective immediately. Bob Buchan will remain active as Executive Chairman and ensure Buffington has the continued support necessary for success in his new role. The stock was up nearly 3 percent.

The Capped Materials Index gathered 1.68 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) up 2.19 percent.

The Diversified Metals & Mining Index jumped 2.67 percent, with First Quantum Minerals Ltd. (FM.TO) up 1.88 percent and Teck Resources Limited (TCK.B.TO) surged 5.71 percent. Lundin Mining Corp. (LUN.TO) jumped 4.26 percent, while Osisko Mining Corp. (OSK.TO) moved up 1.17 percent.

The Energy Index gathered 1.10 percent, with U.S. crude oil futures for August delivery gaining $0.39 or 0.4 percent to close at $103.53 a barrel Tuesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) gained 1.20 percent, while Enbridge Inc. (ENB.TO) moved up 1.73 percent. Talisman Energy Inc. (TLM.TO) gained 0.33 percent, while Encana Corp. (ECA.TO) added 0.22 percent. Canadian Natural Resources Limited (CNQ.TO) added 2.30 percent.

The Financial Index added 0.51 percent with Manulife Financial Corporation (MFC.TO) up 0.50 percent, Bank of Nova Scotia (BNS.TO) up 0.56 percent, and Bank of Montreal (BMO.TO) gained 0.89 percent. Royal Bank of Canada (RY.TO) moved up 0.52 percent.

The Information Technology Index shed 0.52 percent, with BlackBerry (BB.TO) up 0.99 percent.

The Capped Industrials Index added 0.83 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 1.90 percent.

Meanwhile, drugstore chain Jean Coutu Group (PJC) Inc. (PJC_A.TO) lost 2.08 percent after reporting a first-quarter profit that declined to C$108.6 million or C$0.51 per share from C$397.3 million or C$1.81 per share in the same quarter last year

Convenience stores operator Alimentation Couche-Tard Inc. (ATD.B.TO) surrendered 4.95 percent even after reporting improved fourth-quarter net earnings of $146.4 million or $0.77 per share, compared to $117.8 million or $0.65 per share in the same quarter last year.

In economic news from Canada, housing starts fell by less than expected in June from May, according to data from the Canada Mortgage and Housing Corp. The seasonally adjusted annualized rate of housing starts was 199,586 units in June, from a revised 204,616 in May. Analysts expected 187,000 starts in June.

In economic news elsewhere, inflation in China accelerated to 2.7 percent in June from 2.1 percent a month ago, the National Bureau of Statistics said Tuesday. The rate also exceeded the 2.5 percent forecast by economists. Nevertheless, inflation remained well below the 3.5 percent government target. During the first six months of the year, inflation averaged 2.4 percent. Food prices jumped 4.9 percent annually on higher pork prices, up from the 3.2 percent rate in May. Non-food prices rose a more modest 1.6 percent.

From Europe, industrial production in the U.K. remained flat in May from April, while manufacturing output fell unexpectedly by 0.8 percent, data from the Office for National Statistics revealed. Economists had forecast industrial output to grow 0.2 percent in May after falling 0.1 percent in April.

Meanwhile, the deficit in the U.K. goods trade for May widened slightly from the same month last year, data from the Office for National Statistics showed. The visible trade deficit for May was GBP 8.491 billion compared to GBP 8.1 billion a year ago. Economists were looking for a GBP 8.485 billion shortfall. In April, the deficit was GBP 8.430 billion.

In an update to its World Economic Outlook, Washington-based International Monetary Fund has forecast global economic growth at 3.1 percent this year, less than its April projection of 3.3 percent, but equaled last year's growth figure. In 2014, the world economy is expected to expand 3.8 percent, which is also slower than the 4 percent forecast in April.

The 2013 growth forecast for the U.S. was cut to 1.7 percent from 1.9 percent, and the outlook for next year was lowered to 2.7 percent from 3 percent. The 17-nation Eurozone is expected to shrink 0.6 percent this year, worse than the 0.3 percent contraction projected in April.