TSX Ends Higher Ahead Of Fed Meet Outcome -- Canadian Commentary

(RTTNews) - Canadian stocks rallied to end slightly higher on Tuesday, tracking rising U.S. markets ahead of the Federal Reserve's two-day policy meet outcome, even as investors mulled over some disappointing data from China.

Investors appeared to be wary of making significant moves ahead of the U.S. Federal Reserve's monetary policy decision, with both Asian and European markets ending lower due to uncertainty over the near term outlook for the global economy on the back of recent disappointing data out of China are also contributing to the decline.

The U.S. Federal Reserve will conclude its two-day monetary policy meeting on Wednesday and is widely expected to cut down its monthly asset purchases by another $10 billion. The focus is more on what the Fed has to say about interest rate hikes, with speculation rife that a rate hike may happen sooner than earlier thought, perhaps as early as next Spring.

Still, some feel the Fed will keep its pledge to keep rates at near zero for some more time and once again stop short of giving any significant clues about the likely timing of a rate hike.

Information Technologies and Telecom stocks saw some selling, while energy stocks was on the up.

The S&P/TSX Composite Index closed Tuesday at 15,510.54, up 27.98 points or 0.18 percent. The index scaled a intraday high of 15,556.18 and a low of 15,442.71.

On Monday, the index closed down 44.95 points or 0.29 percent at 15,486.63. The index scaled a intraday high of 15,530.85 and a low of 15,442.05.

Crude oil surged to end sharply higher on Tuesday, ahead of the weekly inventories data and the outcome of the U.S. Federal Reserve's monetary policy meet in Washington, with the dollar trending lower.

The Energy Index gained 0.40 percent, with U.S. crude oil futures for October delivery soaring $1.96 or 2.1 percent to close at $94.88 a barrel Tuesday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) shed 0.18 percent, Enbridge Inc. (ENB.TO) up 0.24 percent, Suncor Energy Inc. (SU.TO) added 0.93 percent, Encana Corp. (ECA.TO) down 0.40 percent, and Canadian Natural Resources Limited (CNQ.TO) moved up 0.73 percent.

The Financial Index edged up 0.04 percent, with Toronto-Dominion Bank (TD.TO) down 0.23 percent, Canadian Imperial Bank of Commerce (CM.TO) inched up 0.02 percent, Royal Bank of Canada (RY.TO) gained 0.51 percent, Bank of Nova Scotia (BNS.TO) added 0.15 percent, and Bank of Montreal (BMO.TO) gathered 0.38 percent.

Gold futures ended higher as the dollar trended lower against some select currencies and ahead of the highly anticipated two-day U.S. Federal Reserve policy meet that began today in Washington.

Global Gold Index slipped 0.24 percent, with gold for December delivery adding $1.60 or 0.1 percent to close at $1,236.70 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Goldcorp Inc. (G.TO) down 0.36 percent, B2Gold Corp. (BTO.TO) up 2.20 percent, and Yamana Gold Inc. (YRI.TO) shed 0.99 percent. Eldorado Gold Corp. (ELD.TO) gained 1.44 percent, while Barrick Gold Corp. (ABX.TO) dropped 0.05 percent.

The Capped Materials Index gained 0.22 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 1.23 percent.

The Diversified Metals & Mining Index dipped 0.04 percent, with First Quantum Minerals Ltd. (FM.TO) dropped 0.69 percent, Lundin Mining Corp. (LUN.TO) up 0.17 percent, and Teck Resources Limited (TCK.B.TO) gained 1.46 percent.

The Capped Industrial Index gained 0.38 percent, with Bombardier Inc. (BBD.B.TO) down 0.54 percent and Air Canada (AC.B.TO) shed 0.99 percent.

The Information Technology Index fell 0.21 percent, with BlackBerry Limited (BB.TO) down 0.41 percent and Avigilon Corp. (AVO.TO) down 1.49 percent.

The Consumer Staples Index added 1.22 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) up 0.48 percent and Metro Inc. (MRU.TO) up 0.48 percent.

The Healthcare Index moved up 0.16 percent, with Extendicare Inc. (EXE.TO) up 1.08 percent and Catamaran Corp. (CCT.TO) down 0.52 percent.

Valeant Pharmaceuticals International, Inc. (VRX.TO) and Pershing Square Capital Management, L.P. announced an agreement with Allergan, Inc. (AGN) to settle pending litigation before the Delaware Court of Chancery. Allergan has agreed to unconditionally call and hold a special meeting of its shareholders on December 18. Valeant Pharmaceuticals shares slipped 0.12 percent.

The Telecom Index shed 0.52 percent with Rogers Communications Inc. (RCI.B.TO) down 1.27 percent, while TELUS Corp. (T.TO) shed 0.15 percent.

Carfinco Financial Group Inc. (CFN.TO) soared 32.13 percent after Spanish commercial bank Banco Santander S.A. (BNC.L) agreed to acquire it for C$298 million in cash, with an aim to enter the Canadian market. Under the agreement, Carfinco shareholder will receive C$11.25 for each common share of Carfinco.

TransAlta Corporation (TA.TO) jumped 5.98 percent, to rebound from a sharp loss in the previous session. The company said it has appointed Mr. John P. Dielwart, who was a CEO at ARC Resources Limited until January 2013, to its Board of Directors effective October 1, 2014.

In economic news from the U.S., data from the Labor Department showed producer prices were unchanged as expected in the month of August, after inching up by 0.1 percent in July. Excluding decreases in food and energy prices, core producer prices ticked up by 0.1 percent in August after edging up by 0.2 percent in the previous month. The modest increase also matched estimates.

Germany's investor confidence weakened to a level last seen in late 2012 amid concerns of rising geopolitical tensions hurting the European economy, the Centre for European Economic Research/ZEW reported Tuesday. The ZEW economic sentiment index fell to 6.9 in September from 8.6 in August. Nonetheless, the weakest reading since November 2012 was above economists' forecast of 5.

U.K. inflation slowed marginally as expected in August on drop in prices of motor fuels and food, the Office for National Statistics revealed Tuesday. Consumer prices rose 1.5 percent year-on-year in August, slower than the 1.6 percent rise in July, in line with economists' expectations.