TSX Ends Higher On China Data - Canadian Commentary

(RTTNews) - Canadian stocks ended at two-year high for a fourth straight session Friday, tracking rising global equity markets led by resource stocks, on some upbeat economic data from China, the second largest economy in the world. For the first time in three quarters, China's economy grew at a faster rate, in track to achieve its target for the year.

The S&P/TSX Composite Index gained 1.9 percent for the week.

China's economic growth in the July-September period accelerated for the first time in three quarters, in line to achieve the government's growth target of 7.5 percent this year.

The S&P/TSX Composite Index closed Friday at 13,136.09, up 99.73 points or 0.77 percent. The index touched an intraday high of 13,156.75 and a low of 13,035.89. The Index added nearly 150 points or just over 1 percent in the past three sessions.

The Diversified Metals & Mining Index gained 1.69 percent, with First Quantum Minerals Ltd. (FM.TO) up 1.82 percent, Teck Resources Limited (TCK.B.TO) up 0.53 percent, and Lundin Mining Corp. (LUN.TO) gaining 0.22 percent.

The Capped Materials Index shed 0.01 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) edging up 0.24 percent.

Gold futures ended lower Friday, after recording massive gains yesterday following the resolution of the sixteen-day U.S. government shutdown and debt ceiling issues, for want of direction in the absence of any major macroeconomic data.

The Global Gold Index shed 0.56 percent, with gold futures for December delivery shedding $8.40 or 0.6 percent to close at $1,314.60 an ounce Friday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropping 2.13 percent, while Barrick Gold Corp. (ABX.TO) edged up 0.05 percent. Goldcorp Inc. (G.TO) shed 0.83 percent, while Kinross Gold Corp. (K.TO) dropped 0.60 percent. Eldorado Gold Corp. (ELD.TO) surrendered 1.72 percent.

Crude oil pared much of the gains but still ended higher Friday, on the Chinese economic growth data even as the dollar trended lower against a basket of major currencies. The gains were limited on the massive build-up in U.S. crude oil stockpiles last week.

The Energy Index gained 0.79 percent, with U.S. crude oil futures for November delivery gaining $0.14 or 0.1 percent to close at $100.81 a barrel Friday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) gathered 0.83 percent, while Enbridge Inc.(ENB.TO) gained 1.24 percent. Imperial Oil Limited (IMO.TO) gained 0.70 percent, while Talisman Energy Inc. (TLM.TO) added 0.08 percent.

The Financial Index added 0.74 percent with Bank of Montreal (BMO.TO) adding 0.93 percent, while Manulife Financial Corp. (MFC.TO) edged up 0.39 percent. The Bank of Nova Scotia (BNS.TO) gained 1.23 percent, while Toronto-Dominion Bank (TD.TO) added 0.27 percent. Royal Bank of Canada (RY.TO) gathered 1.15 percent, while National Bank of Canada (NA.TO) gathered 0.31 percent.

The Information Technology Index gathered 0.48 percent, although smartphone maker BlackBerry Limited (BB.TO) gained 2.37 percent. Meanwhile, a report in the Wall Street Journal said Chinese PC maker Lenovo Group Ltd. is considering making a bid for the Canadian smartphone maker BlackBerry. Lenovo has signed a non-disclosure deal with BlackBerry.

The Capped Industrials Index moved up 1.28 percent, with Air Canada (AC.B.TO) up 4.64 percent. Bombardier Inc. (BBD.A.TO, BBD.B.TO) gained 1.80 percent after its unit Bombardier Aerospace signed a conditional purchase agreement for five CS100 and ten CS300 jetliners with CDB Leasing Co., Ltd., a Chinese aircraft lessor.

In economic news Statistics Canada said the Consumer Price Index rose 1.1 percent in the 12 months to September, matching the increase in August. Economists expected inflation to rise 1.0 percent. Meanwhile, the Bank of Canada's core index rose 1.3 percent in the 12 months to September, matching the increase in August. On a monthly basis, the seasonally adjusted core index rose 0.1 percent in September, after posting no change in the previous month.

In other economic news, China's National Bureau of Statistics revealed that the country's economic growth accelerated for the first time in three quarters in the July-September period. China's gross domestic product rose 7.8 percent year-on-year in the third quarter, in line with expectations. This was faster than a 7.5 percent growth in the second quarter and a 7.7 percent gain in the first quarter.