TSX Ends Marginally Lower On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks ended lower Tuesday, tracking declining global equity markets as investors await cues from the Federal Reserve Chairman Ben Bernanke's testimony before lawmakers on its monetary policy later this week, and China's economic growth adding to the woes.

European stocks ended mostly lower after survey data from the Center for European Economic Research showed German economic sentiment deteriorated unexpectedly in July.

The S&P/TSX Composite Index closed Tuesday at 12,516.89, down 11.46 points or 0.09 percent. The index touched an intraday high of 12,567.15 and a low of 12,490.60.

The Global Gold Index surged 4.88 percent, with gold futures for August delivery gaining $6.90 or 0.5 percent to close at $1,290.40 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) soared 6.72 percent, while Goldcorp Inc. (G.TO) jumped 4.88 percent. IAMGOLD Corp. (IMG.TO) surged 7.05 percent, while Barrick Gold Corp. (ABX.TO) soared 5.93 percent. Kinross Gold Corp. (K.TO) jumped 6.00 percent.

The Capped Materials Index added 2.15 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 3.29 percent.

The Diversified Metals & Mining Index moved up 2.00 percent, with First Quantum Minerals Ltd. (FM.TO) gained 2.07 percent and Teck Resources Limited (TCK.B.TO) up 2.28 percent. Lundin Mining Corp. (LUN.TO) surged 5.13 percent, while Osisko Mining Corp. (OSK.TO) gathered 4.52 percent.

The Energy Index dipped 0.33 percent, with U.S. crude oil futures for August delivery dropping $0.32 or 0.3 percent to close at $106.00 a barrel Tuesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.40 percent, while Enbridge Inc. (ENB.TO) gained 0.13 percent. Talisman Energy Inc. (TLM.TO) shed 1.17 percent, while Encana Corp. (ECA.TO) dropped 0.28 percent. Canadian Natural Resources Limited (CNQ.TO) surrendered 0.24 percent.

The Financial Index slipped 0.05 percent with Manulife Financial Corp. (MFC.TO) down 0.50 percent and Bank of Montreal (BMO.TO) down 0.06 percent. Royal Bank of Canada (RY.TO) moved up 0.51 percent, while Toronto-Dominion Bank shed 0.08 percent. Bank of Nova Scotia (BNS.TO) gave up 0.12 percent.

The Information Technology Index lost 1.56 percent, with BlackBerry (BB.TO) surrendering 2.87 percent.

The Capped Industrials Index dropped 0.77 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 1.01 percent.

Coeur Mining Inc. (CDM.TO) gained 6.73 percent after announcing production of 4.6 million ounces silver and 60,757 ounces of gold during the second quarter of 2013. The company also reaffirmed its full-year 2013 consolidated production guidance of 18.0-19.5 million ounces of silver and 250,000-265,000 ounces of gold.

In economic news Statistics Canada said manufacturing sales increased 0.7 percent to $48.6 billion in May, registering the second gain in five months. Sales were up in 11 of 21 industries, representing about 57 percent of the manufacturing sector. Sales of durable goods were up 1.3 percent while non-durable goods sales edged up 0.2 percent.

In economic news from the U.S., the Labor Department said its consumer price index rose by 0.5 percent in June after inching up by 0.1 percent in May. Economists had been expecting prices to increase by 0.4 percent. Excluding food and energy prices, the core consumer price index edged up by 0.2 percent in June, matching the increase seen in the previous month as well as economist estimates.

Homebuilder confidence in the U.S. improved unexpectedly in July, a report from the National Association of Home Builders showed Tuesday, which is at its highest level in well over seven years. The NAHB/Wells Fargo Housing Market Index jumped to 57 in July from a downwardly revised 51 in June. Economists expected the index to come in unchanged compared to the 52 originally reported for the previous month. The housing market index is at its highest level since a matching reading in January 2006.

With mining output showing a notable increase, the Federal Reserve's report on Tuesday showed industrial production to have risen slightly more than expected in June. Industrial production rose by 0.3 percent in June after coming in unchanged in May. Economists expected production to edge up by 0.2 percent.

From the eurozone, German economic sentiment deteriorated unexpectedly in July, survey data from the Center for European Economic Research revealed. The ZEW indicator of economic sentiment fell 2.2 points to 36.3 point-mark, while it was forecast to improve to 40. Nonetheless, it remains above the historical average of 23.7.

Inflation in euro area accelerated to 1.6 percent in June from 1.4 percent in May, the Eurostat said, while confirming its flash estimate. Month-on-month, the harmonized index of consumer prices increased 0.1 percent in June.

In a separate report, the Eurostat said eurozone trade in goods with the rest of the world showed a surplus in May, which was higher than a month earlier. The trade surplus rose to 15.2 billion euros in May from a downwardly revised 14.1 billion euros in April. A year earlier, the surplus amounted to 6.6 billion euros.

Elsewhere in Europe, U.K. inflation rose to 2.9 percent in June on higher motor fuel and clothing and footwear charges, data from the Office for National Statistics showed. It was the fastest since April 2012. Although the rate exceeded the 2.7 percent in May, it was marginally below the expected rate of 3 percent. Month-on-month, consumer prices fell 0.2 percent, offsetting the 0.2 percent increase in the prior month.