Canadian stocks rallied to end a tad higher Tuesday, led by resource stocks as investors anxiously awaited cues on further stimulus from the Federal Reserve policy meeting and a ruling by the German constitutional court on the country's participation in the European Stability Mechanism fund on Wednesday.
Meanwhile, data out of Canada disappointed with the nation registering its biggest trade deficit on record in the month of July.
The S&P/TSX Composite Index closed Tuesday at 12,220.45, up 5.02 points or 0.04 percent. The index touched an intraday high of 12,264.13 and a low of 12,193.78.
The Metals & Mining Index gained 1.47 percent, with Teck Resources Limited (TCK.B.TO) surging 5.27 percent, while First Quantum Minerals Ltd. (FM.TO) slipped 1.32 percent. Lundin Mining Corp. (LUN.TO) edged up 1.03 percent, while Osisko Mining Corp. (OSK.TO) rose 0.69 percent.
The Energy Index edged up 0.45 percent, with U.S. crude oil futures for October delivery gaining $0.63 or 0.7 percent to close at $97.17 a barrel Tuesday on the NYMEX.
Among energy stocks, Talisman Energy Inc. (TLM.TO) shed 0.85 percent, Canadian Natural Resources Limited (CNQ.TO) gained 1.74 percent, Encana Corp. (ECA.TO) was up 1.36 percent, and Suncor Energy Inc. (SU.TO) edging up 0.18 percent.
The Financial Index dropped 0.33 percent with Royal Bank of Canada (RY.TO) shedding 1.12 percent. Royal Bank announced changes to its business segments, effective October 31. The business segments for financial reporting purposes will now include Investor & Treasury Services; Personal & Commercial Banking; Capital Markets; Wealth Management; and Insurance.
Among other financial stocks, Bank of Nova Scotia (BNS.TO) edged up 0.23 percent, Toronto-Dominion Bank (TD.TO) surrendered 0.81 percent, and Manulife Financial Corp. (MFC.TO) gained 1.47 percent.
The Global Gold Index dropped 0.08 percent, although gold futures for December delivery gained $3.10 or 0.2 percent to close at $1,734.90 an ounce Tuesday on the NYMEX.
The Capped Materials Index gained 0.10 percent.
Among gold stocks, Barrick Gold (ABX.TO) slipped 0.34 percent, Yamana Gold Inc. (YRI.TO) dropped 2.80 percent, Goldcorp Inc. (G.TO) slipped 0.22 percent, Eldorado Gold Corp. (ELD.TO) gained 2.09 percent, and Kinross Gold (K.TO) dropped 0.33 percent.
Among heavyweights, fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) slipped 0.62 percent, while transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) gathered 0.85 percent.
The Information Technology Index gained 0.77 percent, with smartphone maker Research In Motion Limited (RIM.TO) rising 4.01 percent.
In economic news, Statistics Canada said trade deficit with the world expanded from $1.9 billion in June to $2.3 billion in July as exports fell 3.4 percent and imports decreased 2.2 percent in July. Exports of energy products fell 8.5 percent to $8.2 billion in July on lower volumes and prices. Economists expected a trade deficit of $1.40 billion.
Meanwhile, the Canada Mortgage and Housing Corp said the seasonally adjusted annualized rate of housing starts was 224,900 units in August, compared with 208,000 units in July. The July data was revised down slightly from 208,500 units reported previously.
In economic news from the U.S., the Commerce Department said the country exported $183.3 billion of goods and services in July, compared to imports of $225.3 billion for the month. The difference marks a trade deficit of $42 billion, up from the June trade deficit level of $41.9 billion.
From the eurozone, German wholesale price inflation accelerated for the second straight month, according to a report released by the Federal Statistical Office. The wholesale price index rose 3.1 percent year-over-year in August compared to expectations for a 2 percent increase.
Meanwhile, U.K.'s visible trade deficit declined to 7.1 billion pounds in July from a deficit of 10.1 billion pounds in June. Economists expected a more modest drop to 10 billion euros.
by RTT Staff Writer
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