TSX Ends Sharply Higher Tracking Global Markets -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Tuesday, following rising global markets led by energy, mining and financial stocks, with investors focused on the outcome of Federal Reserve's two-day policy review meet and developments in Ukraine with Vladimir Putin signing a decree that will make Crimea a part of Russia.

In economic news from the U.S., a Commerce Department report showed housing starts with some further downside in February , after reporting a sharp drop in new residential construction in the previous month. Meanwhile, a Labor Department report on Tuesday showed modest increase in U.S. consumer prices in February, with an increase in food prices offsetting a drop in energy prices.

Investors await the Fed's decision on stimulus tapering, with expectations the central bank will trim its asset purchase by $10 billion to $55 billion per month at the end of its two-day meeting that began this morning.

Russian President Vladimir Putin made it clear that he would not seek annex all of Ukraine. Addressing lawmakers in Moscow, Putin claimed Crimea as a part of Russia, but signaled he would leave the rest of Ukraine to its own devices. Putin's remarks before a joint session of the Russian parliament indicated that the separatist Crimea region would rejoin Russia following Sunday's referendum.

Meanwhile, it is widely expected that the soft sanctions on Russia following the Crimea region of Ukraine voting to join Russia will not result in supply interruption from the region.

Traders also tracked rising global equity markets, with U.S. equities continuing to post strong gains, while almost all major European markets ended higher. Stock markets across the Asia-Pacific region turned in a fine performance, to end higher.

The S&P/TSX Composite Index closed Tuesday at 14,368.92, up 137.03 points or 0.96 percent. The index scaled an intraday high of 14,372.46 and a low of 14,228.58. The Index came close to its five-year high of 14,335.52.

Crude oil ended sharply higher ahead of the official inventory data and the outcome from the two-day U.S. Federal Reserve policy review meet later this week.

The Energy Index gained 1.41 percent, with U.S. crude oil futures for April delivery, surging surged $1.62 or 1.7 percent to close at $99.70 a barrel Tuesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.61 percent, while Enbridge Inc. (ENB.TO) gained 1.12 percent. Canadian Natural Resources Ltd. (CNQ.TO) added 1.70 percent, while Talisman Energy Inc. (TLM.TO) moved up 1.38 percent. Encana Corp. (ECA.TO) added 1.60 percent and Whitecap Resources Inc. (WCP.TO) was up 1.46 percent.

The Global Gold Index slipped 0.44 percent, with gold futures for April delivery, dropping $13.90 or 1.0 percent to close at $1,359.00 an ounce Tuesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) added 1.47 percent, while Barrick Gold Corp. (ABX.TO) dropped 0.31 percent. Detour Gold Corp. (DGC.TO) dropped 0.86 percent, while Goldcorp Inc. (G.TO) surrendered 0.16 percent.

The Capped Materials Index added 0.36 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) added 2.17 percent.

The heavyweight Financial Index gained 0.54 percent with the Toronto-Dominion Bank (TD.TO) up 0.54 percent, Bank of Nova Scotia (BNS.TO) up 0.59 percent, and Royal Bank of Canada (RY.TO) up 0.63 percent.

The Diversified Metals & Mining Index added 1.69 percent, with Teck Resources Limited (TCK.B.TO) up 1.25 percent, Lundin Mining Corp. (LUN.TO) gaining 2.86 percent, and First Quantum Minerals (FM.TO) adding 1.72 percent.

The Information Technology Index moved up 1.07 percent, with BlackBerry Limited (BB.TO) adding 1.28 percent.

The Capped Industrials Index advanced 1.24 percent, with Bombardier Inc. (BBD.B.TO) adding 1.70 percent. Air Canada (AC.B.TO) gained 0.30 after it suspended flights to Venezuela, citing security concerns.

In corporate news, Alimentation Couche-Tard Inc. (ATD.B.TO) gained 2.11 percent after its CEOAlain Bouchard announced plans to step down. The company posted net earnings of $182.3 million for the third quarter, compared to $142.2 million in the third quarter of the previous year.

Stella-Jones Inc.(SJ.TO) gained 4.46 percent following the signing of a non-binding letter of intent to acquire the wood treading facilities of Boatright Railroad Products Inc.

TMX Group Ltd. (X.TO) added 0.99 percent after indicating that its Chief Executive Officer Thomas Kloet will retire from the company effective August 31.

On the economic front, Canadian factory shipments improved more than expected in January, rising at their fastest pace in 11 months as demand for iron, steel and food products rose. Manufacturing sales climbed 1.5 percent to C$50.36 billion, Statistics Canada said Tuesday.

In economic news from the U.S., a Commerce Department report on Tuesday showed housing starts with some further downside in February , after reporting a sharp drop in new residential construction in the previous month. Housing starts edged down by 0.2 percent to a seasonally adjusted annual rate of 907,000 in February. Economists expected housing starts to climb to 910,000 in February from the rate originally reported for the previous month.

Meanwhile, building permits, an indicator of future housing demand, jumped 7.7 percent to an annual rate of 1.018 million in February from the revised January rate of 945,000, the U.S. Commerce Department said. Economists expected building permits to climb to a rate of 960,000 from the 937,000 originally reported for the previous month.

A Labor Department report on Tuesday showed a modest increase in U.S. consumer prices in February, with an increase in food prices offsetting a drop in energy prices. The consumer price index edged up by 0.1 percent in February, matching the increase seen in January. The uptick in prices also matched economist estimates.

From Europe, economic expectations for Germany worsened in March, burdened by the Crimea crisis, while the assessment of current situation hit the highest level since 2011, survey data from the Centre for European Economic Research/ZEW revealed Tuesday. The economic confidence index dropped more-than-expected to 46.6 in March from 55.7 in February. The March score was the weakest since August 2013. It was forecast to fall less markedly to 52.

Eurozone's merchandise trade with the rest of the world resulted in a surplus in January, with balance of foreign trade, on an unadjusted basis, showed a surplus of 0.9 billion euros, compared to a deficit of 5.4 billion euros in the corresponding month last year. Economists expected a surplus of 13.9 billion euros for January. In December 2013, the bloc recorded a trade surplus of EUR13.8 billion.

Investors will be focused on the American Petroleum Institute weekly report due later today, and the official U.S. crude oil inventories data for last week due Wednesday. Analysts expect a significant build in stockpiles for a second straight week.