By RTT News, October 17, 2013, 11:18:00 AM EDT
(RTTNews.com) - Canadian stocks were extending gains for a third session Thursday morning as traders now shift focus to macroeconomic developments after the U.S. lawmakers reached a short-term solution to the debt ceiling crisis.
The S&P/TSX Composite Index edged up 14.41 points or 0.11 percent to 12,971.62, after adding 0.50 percent in the past two sessions.
Gold stocks were under the buyers' radar amid a smart rebound in bullion prices. The price of gold moved up Thursday morning, with the US dollar trading weak versus a basket of currencies after US lawmakers clinched a deal to avert a default. Gold for December gained $34.20 to $1,316.50 an ounce.
The Global Gold Index gained over 4 percent, with Royal Gold (RGL.TO), Barrick Gold (ABX.TO), Goldcorp. (G.TO), Agnico-Eagle Mines (AEM.TO), Alamos Gold (AGI.TO) and Seabridge Gold (SEA.TO) adding around 4 percent each. Detour Gold (DGC.TO) jumped nearly 6 percent.
The price of crude oil was moving lower Thursday morning amid concerns over demand growth after an industry data revealed crude stock buildup in the US last week. Wednesday after the market hours, the API said US crude oil inventories increased 5.94 million barrels, while gasoline stocks shed 2.21 million barrels in the weekended October 11. Analysts projected U.S. oil inventories to have increased by 1.7 million barrels and gasoline stockpiles are expected to drop by 100,000 barrels last week.
Crude for November lost $1.56 to $100.73 a barrel.
In the oil patch, Suncor Energy (SU.TO), Tourmaline Oil (TOU.TO) and Vermilion Energy (VET.TO) were down around 1 percent each.
Mineral exploration and development company Energizer Resources Inc (EGZ.TO) jumped 12% after announcing that it has commissioned and started up the pilot plant for its flagship Molo Graphite Project in Madagascar.
In economic news, Statistics Canada said non-resident investment in Canadian securities slowed to $2.1 billion in August, with focus turning toward corporate debt instruments. Meanwhile, Canadian investment in foreign securities rose to $5.7 billion, recording its the largest gain since November 2012.
From the U.S, the Labor Department said initial jobless claims fell to 358,000 in the weekended October 12, a decrease of 15,000 from the previous week's revised figure of 373,000. Economists had expected jobless claims to drop to 335,000 from the 374,000 originally reported for the previous week.
Elsewhere, euro zone's current account surplus increased in August mainly due to a rise in visible trade surplus, monthly data from the European Central Bank showed. The current account surplus rose to a seasonally adjusted EUR 17.4 billion in August from EUR 15.5 billion in July. The surplus on trade in goods increased to EUR 14.7 billion from EUR 11.1 billion in the previous month.
Euro zone's construction output increased at a slower pace in August, preliminary data released by statistical office Eurostat showed. Construction production increased a seasonally adjusted 0.5 percent month-on-month, following a 0.7 percent gain in July and a 1.5 percent growth in June.
U.K. retail sales increased more than expected in September, data from the Office for National Statistics revealed. Retail sales volume, including automotive fuel, rose 0.6 percent month-on-month in September. This was forecast to grow 0.4 percent.
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