TSX Ends Higher On U.S. Fed Minutes - Canadian Commentary

(RTTNews) - Canadian stocks settled higher Wednesday, after the U.S. Federal Reserve refrained from tapering its quantitative easing program in view of the current budget impasse and on optimism from President Barack Obama's nomination of Janet Yellen to head the Fed. The gains were led mostly by resource and telecom stocks although somewhat pegged back by gold stocks.

The Federal Reserve refrained from scaling back its quantitative easing program last month due mainly on concerns related to the government shutdown, minutes of the Fed's September 16-17 meeting showed. Wall Street expected the Fed to taper its $85 billion per month bond-buying plan, but most policy makers chose to leave the program in place due to the uncertainty linked to the budget impasse and debt ceiling.

Meanwhile, lawmakers in Washington continued to struggle to reach an agreement to end the fiscal crisis, with the deadline to raise the debt ceiling looming just days away. Despite the growing public anger with the wrangling in Washington, both Democrats and Republicans continued to remain adamant on their respective stand.

With the government shutdown has entering a ninth day, President Barack Obama is scheduled to meet with House Democrats later today as part of a series of discussions with lawmakers from both parties and both houses of Congress.

The S&P/TSX Composite Index closed Wednesday at 12,730.33, up 37.92 points or 0.30 percent. The index touched an intraday high of 12,763.53 and a low of 12,678.02.

The Diversified Metals & Mining Index gained 0.52 percent, with First Quantum Minerals Ltd. (FM.TO) gaining 3.25 percent, Teck Resources Limited (TCK.B.TO) down 0.53 percent, and Lundin Mining Corp. (LUN.TO) down 0.69 percent. Osisko Mining Corp. (OSK.TO) shed 0.57 percent.

The Capped Materials Index inched up 0.06 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 0.30 percent

The Global Gold Index dipped 0.11 percent, with gold futures for December delivery down $17.40 or 1.3 percent to close at $1,307.20 an ounce Wednesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 2.11 percent, while Barrick Gold Corp. (ABX.TO) edged up 0.38 percent. Goldcorp Inc. (G.TO) moved up 0.67 percent, while Kinross Gold Corp. (K.TO) added 0.20 percent, Eldorado Gold Corp. (ELD.TO) gathered 0.79 percent.

The Energy Index gained 0.25 percent, although U.S. crude oil futures for November delivery plunged $1.80 or 1.8 percent to close at $101.61 a barrel Wednesday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) gained 1.01 percent, while Enbridge Inc.(ENB.TO) added 0.05 percent. Imperial Oil Limited (IMO.TO) shed 0.13 percent, while Encana Corp. (ECA) edged up 0.06 percent. Talisman Energy Inc. (TLM.TO) dropped 1.47 percent.

The Financial Index moved up 0.14 percent with Bank of Montreal (BMO.TO) ending flat at $68.65 a share, while Manulife Financial Corp. (MFC.TO) gained 0.71 percent. The Bank of Nova Scotia (BNS.TO) added 0.20 percent, while Toronto-Dominion Bank (TD.TO) moved up 0.10 percent. Royal Bank of Canada (RY.TO) inched up 0.05 percent, while National Bank of Canada (NA.TO) gathered 0.20 percent.

The Information Technology Index added 0.06 percent, with smartphone maker BlackBerry Limited (BB.TO) adding 2.55 percent.

The Capped Industrials Index gathered 0.47 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 1.46 percent and Air Canada (AC.B.TO) adding 1.96 percent.

Pretium Resources Inc. (PVG.TO) dived 30.53 percent after Strathcona Mineral Services Ltd., engaged as the independent Qualified Person to oversee and report on the 10,000-tonne bulk sample for the Program, has resigned from the Project.

Technology innovation and licensing company Wi-LAN Inc. (WIN.TO) gained 1.04 percent after signing an agreement with BlackBerry Ltd. (BB.TO) to dismiss all pending patent litigation between the companies, with specific financial terms of the deal being confidential.

Drugstore chain Jean Coutu Group (PJC), Inc. (PJC_A.TO) lost 4.18 percent despite reporting a second-quarter net profit that surged to C$208.2 million or C$0.98 per share from last year's C$51.2 million or C$0.23 per share. Adjusted net profit totaled C$49.9 million or C$0.24 per share in the recent period.

Aviation-training and simulation products provider CAE Inc. (CAE.TO) edged up 0.18 percent after being awarded about $140 million in military contracts, including about $85 million to CAE USA alone. The US contracts also include options valued at an additional $50 million over the next five years.

Food retailer Loblaw Companies (L.TO) gained 1.66 percent after asking the public not to consume President's Choice Thick & Juicy Burgers in package size 40 x 113 g (4 oz), as it may be contaminated with E.coli O157:H7. The product is sold at Loblaw banner stores across Canada.

In economic news from the eurozone, Germany's industrial production increased at a faster-than-expected pace in August, recovering from the previous month's contraction, according to latest data. Industrial production increased a seasonally and working-day adjusted 1.4 percent month-on-month in August, after falling 1.1 percent in July, preliminary data from the Federal Ministry of Economics and Technology showed. Economists had forecast a more modest increase of 1 percent.

Meanwhile, U.K. industrial production declined unexpectedly by 1.1 percent in August from July, largely due to a 1.2 percent fall in manufacturing output after two consecutive increases, data from the Office for National Statistics showed. Economists had forecast industrial and manufacturing output to grow 0.4 percent each in August. In July, industrial production was up 0.1 percent and manufacturing output gained 0.2 percent.

Elsewhere, the Organization for Economic Cooperation and Development's composite leading indicator signaled improvements in growth in most member countries with divergent patterns among large emerging economies. The index edged up to 100.6 in August from 100.5 in July, the OECD reported Wednesday.

The OECD indicator points to economic growth above trend in the United States and Japan, and to growth firming in the United Kingdom. In the euro area as a whole, the indicator continues to suggest a gain in growth momentum. According to OECD, growth is returning to trend in China and a tentative positive change in momentum is developing in Russia. However, in Brazil and in India, the index continue to signal growth below trend rates.