Canadian News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

TSX Up As Eurozone Worries Subside - Canadian Commentary

TSX Up As Eurozone Worries Subside - Canadian Commentary
2/5/2013 11:03 AM ET

Canadian stocks were hovering in the green Tuesday morning as worries over the euro zone financial situation eased amid today's batch of upbeat macroeconomic data out of the region. While the euro zone private sector contracted at a slightly slower than estimated pace, activity in Germany's private sector economy increased at the fastest rate in nineteen months in January.

The S&P/TSX Composite Index gained 33.95 points or 0.27 percent to 12,751.57, after losing about 0.50 percent in the previous session.

BlackBerry (BB.TO, RIMM, RIM.TO) and Unity Technologies (UTX) said they will work together to create a Unity deployment add-on tool for BlackBerry 10 smartphones. The tool will be released as an add-on option for Unity, thereby empowering its community to publish their games on these powerful platforms. Shares of BlackBerry rose about 10 percent amid reports that the Z10 smartphone won record orders at Canadian wireless carrier BCE Inc. Yesterday, the stock gained about 15 percent as a brokerage firm upgraded the stock.

The price of crude oil was moving higher Tuesday morning, with geopolitical tensions in the Middle East supporting oil prices. Crude for March gained $0.68 to $96.85 a barrel.

In the oil patch, Bonterra Energy (BNE.TO) and Suncor Energy (SU.TO) were up around 1 percent each, while Niko Resources (NKO.TO) and Nexen Inc. (NXY.TO) slipping 0.50 percent each

Aviation-training and simulation products provider CAE Inc. (CAE.TO) edged up 0.50 percent after winning more than C$100 million in military contracts for the defence forces of 15 countries.

Canadian airline WestJet Airline (WJA.TO) gained 2 percent after reporting a 7.7 percent growth in January 2013 traffic or revenue passenger miles to 1.65 billion, from 1.53 billion last year, with capacity, measured in available seat miles, totaling 2.04 billion, up 6.4 percent from 1.92 billion in January 2012.

Commercial animal nutrition company Ridley Inc. (RCL.TO) rose about 10 percent after reporting second quarter revenue of $157.1 million, an increase of $10.8 million over the same period last year.

Meanwhile, gold stocks were marginally lower amid weak bullion prices. The price of gold was ticking lower Tuesday morning as euro zone worries subsided amid today's batch of upbeat macroeconomic data out of the region . Gold for April shed $7.70 to $1,668.70 an ounce.

Among gold plays, Royal Gold (RGL.TO), Seabridge Gold (SEA.TO) and Allied Nevada Gold (ANV.TO) were down around 1 percent each.

In economic news from the U.S., the Institute for Supply Management said its non-manufacturing index edged down to 55.2 in January from a revised 55.7 in December, with a reading above 50 indicating continued growth in the service sector. Economists had been expecting the index to slide to 55.1 from the 56.1 originally reported for the previous month.

Elsewhere, the euro zone private sector contracted at a slightly slower than estimated pace in January, Markit Economics said. The final composite output index rose to a ten-month high of 48.6 in January and came in above its earlier flash estimate of 48.2. The index climbed from 47.2 in December.

Meanwhile, activity in Germany's private sector economy increased at the fastest rate in nineteen months in January, and the rate of growth exceeded preliminary estimates, final data released by Markit Economics and BME showed.

A report from Eurostat revealed that euro zone retail sales fell more than expected in December, by 0.8 percent from a month ago. The decline was sharper than the 0.1 percent fall logged in November and a 0.5 percent drop forecast by economists.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

comments powered by Disqus