TSX Ends Marginally Higher Amid US Budget Crisis - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Friday, led mostly by gold stocks amid fears of an impending budget crisis in the U.S. Gains for the day were capped on continued worries over a possible government shutdown in the U.S. and as well over the Federal Reserve's possible tapering of its quantitative easing program next month.

Investors remained cautious with the U.S. government reaching its borrowing limit of $16.7 trillion mid October. The debt ceiling has to be lifted by Congress, but currently there appears to be no consensus between the White House and the Republican lawmakers on the issue.

The S&P/TSX Composite Index closed Friday at 12,844.08, up 2.46 points or 0.02 percent. The index touched an intraday high of 12,865.85 and a low of 12,818.14.

The Diversified Metals & Mining Index dropped 1.58 percent, with Teck Resources Limited (TCK.B.TO) down 4.06 percent and Lundin Mining Corp. (LUN.TO) shed 1.51 percent. Osisko Mining Corp. (OSK.TO) gained 1.34 percent.

The Capped Materials Index shed 0.16 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) ending flat at $32.57..

Gold futures ended higher Friday, over concerns of a possible government shutdown in Washington due to the budget and debt ceiling crisis.

The Global Gold Index gained 0.06 percent, with gold futures for December delivery gathering $15.10 or 1.1 percent to close at $1,339.20 an ounce Friday on the Nymex.

Yamana Gold Inc. (YRI.TO) gained 0.09 percent, while IAMGOLD Corp. (IMG) dropped 1.01 percent. B2Gold Corp. (BTO.TO) gained 1.54 percent, while Goldcorp Inc. (G.TO) added 0.26 percent. Kinross Gold Corporation (K.TO) dipped 0.39 percent, while Eldorado Gold Corp. (ELD.TO) shed 0.15 percent. Barrick Gold Corp. (ABX.TO) gained 0.16 percent.

Crude oil ended lower Friday, over concerns of a possible government shutdown in Washington on the budget and debt ceiling impasse. Investors continued to fret over the situation with the Congress needing to raise the debt ceiling by mid-October, but currently there are no hints of a consensus between the White House and Republican lawmakers on the horizon.

The Energy Index moved up 0.03 percent, with U.S. crude oil futures for November delivery dropping $0.16 or 0.2 percent to close at $102.87 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 0.49 percent, Talisman Energy Inc. (TLM.TO) gathered 1.02 percent, and Suncor Energy Inc.(SU.TO) down 0.03 percent. Enbridge Inc. (ENB.TO) dropped 0.12 percent, while Imperial Oil Limited (IMO.TO) surrendered 0.11 percent.

Trilogy Energy (TET.TO) jumped 10.98 percent after providing operational updates.

The Financial Index added 0.15 percent with Bank of Montreal (BMO.TO) up 0.40 percent and Manulife Financial Corp. (MFC.TO) up 0.17 percent. The Bank of Nova Scotia (BNS.TO) shed 0.95 percent, while Toronto-Dominion Bank (TD.TO) gathered 0.47 percent. Royal Bank of Canada (RY.TO) moved up 0.21 percent, while National Bank of Canada (NA.TO) lost 0.40 percent.

The Information Technology Index moved up 0.34 percent, with smartphone maker BlackBerry Limited (BB.TO) gaining 0.73 percent after reporting a second-quarter loss, in line with its guidance issued a week ago. BlackBerry's second-quarter loss widened to $965 million or $1.84 per share from $235 million or $0.45 per share last year. Loss from continuing operations totaled $229 million or $0.44 per share in the prior year. Adjusted loss for the quarter was $248 million or $0.47 per share. Analysts expected a loss of $0.49 per share for the quarter.

The Capped Industrials Index inched up 0.03 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 0.62 percent.

In economic news from the U.S., the Commerce Department said personal income rose by 0.4 percent in August following an upwardly revised 0.2 percent increase in July. The acceleration in the pace of growth matched expectations. Additionally, the Commerce Department said personal spending increased by 0.3 percent in August after rising by an upwardly revised 0.2 percent in the previous month. The spending growth also came in line with estimates.

A report by Thomson Reuters and the University of Michigan on Friday showed an upward revision to their reading on U.S. consumer sentiment in September, although the index still indicated a deterioration in sentiment compared the previous month. The final reading on the consumer sentiment index for September came in at 77.5, above the preliminary reading of 76.8 but still below the final August reading of 82.1.

Elsewhere, eurozone economic confidence rose more than expected in September with markedly improved confidence across all business sectors, the European Commission said. The economic sentiment index climbed to 96.9 in September from 95.3 in August. It stayed above consensus of 96. Among components, improvements in construction and retail trade were particularly pronounced.

Germany's EU harmonized inflation remained unchanged in September, in line with economists' expectations, latest data showed. The harmonized index of consumer prices advanced 1.6 percent on annual basis in September, which was unchanged from the growth rate seen in August, preliminary estimates released by the Federal Statistical Office revealed. The outcome matched economists' expectations.

House prices in the UK increased at a faster pace in September, a survey by the Nationwide Building Society showed. The house price index rose 0.9 percent month-on-month in September, faster than a 0.7 percent increase in August. The gain was stronger than the expected 0.5 percent increase.