TSX Ends Lower Ahead Of U.S. Fed Policy Meet - Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end lower on Monday, tracking declining global equity markets, with investors awaiting cues from macroeconomic data due later this week. The main index reached a near two-year high before climbing down as investor sentiments dipped ahead of the U.S. Federal Reserve's two-day policy meet that is expected to maintain its quantitative easing program without any tapering.

Investors also await earnings reports from some big corporates such as Suncor Energy and First Quantum Minerals later this week.

The U.S. Federal Reserve is scheduled to review and assess its economic policy at a two-day meet starting October 29, with analysts expecting the central bank to maintain its $85 billion monthly asset purchase program intact.

In some mixed economic news, pending home sales in the U.S. unexpectedly tumbled to a nine-month low in September, a report from the National Association of Realtors showed Monday. Meanwhile, U.S. industrial production rose more than expected in September, with utilities output showing a substantial rebound, a Federal Reserve report said.

The S&P/TSX Composite Index closed Monday at 13,371.84, down 27.58 points or 0.21 percent. The index touched an intraday high of 13,416.16 and a low of 13,366.25.

The Diversified Metals & Mining Index shed 0.75 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.94 percent, Osisko Mining Corp. (OSK.TO) up 1.88 percent, and Lundin Mining Corp. (LUN.TO) dropping 0.62 percent. Teck Resources (TCK_B.TO) shed 1.98 percent.

The Capped Materials Index added 0.15 percent mostly on gold stocks, with Potash Corporation of Saskatchewan Inc.(POT.TO) gaining 0.98 percent.

The Global Gold Index gained 0.91 percent, although gold futures for December delivery, the most actively traded contract, edged down $0.30 to close at $1,352.20 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 0.84 percent, while Barrick Gold Corp. (ABX.TO) added 0.38 percent. Kinross Gold Corp. (K.TO) gained 1.47 percent, while Eldorado Gold Corp. (ELD.TO) gathered 3.03 percent.

The Energy Index dropped 0.58 percent, although U.S. crude oil futures for December delivery, the most actively traded contract, gained $0.83 or 0.9 percent to close at $98.68 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) dropped 0.53 percent, while Imperial Oil Limited (IMO.TO) shed 0.46 percent. Canadian Natural Resources Limited (CNQ.TO) dropped 1.89 percent, while Encana Corp. (ECA.TO) slipped 0.37 percent.

The Financial Index moved up 0.22 percent with Bank of Montreal (BMO.TO) up 0.19 percent, while Manulife Financial Corp. (MFC.TO) slipped 0.44 percent. The Bank of Nova Scotia (BNS.TO) gained 0.77 percent, while Toronto-Dominion Bank (TD.TO) improved 0.10 percent. National Bank of Canada (NA.TO) dropped 0.64 percent, while Royal Bank of Canada (RY.TO) gathered 0.23 percent.

The Information Technology Index slipped 1.05 percent, with smartphone maker BlackBerry Limited (BB.TO) down 0.58 percent.

The Capped Industrials Index declined 0.78 percent, with Air Canada (AC.B.TO) flat at $5.33 per share and Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 2.05 percent.

Gold miner B2Gold Corp. (BTO.TO) gained 1.07 percent after agreeing to acquire Volta Resources Inc.'s (VTR.TO) outstanding shares at an exchange ratio of 0.15 B2Gold shares for each Volta share held, representing a purchase price of about C$0.42 per Volta share and a total equity value for Volta of nearly $63 million Meanwhile Volta Resources, Inc. (VTR.TO) skyrocketed 97.56 percent to C$0.41.

Electric utility Capital Power Corp. (CPX.TO) rose 2.07 percent after reporting improved third quarter net income of C$44 million compared to C$39 million last year, with per share earnings flat with last year at C$0.55. Normalized earnings for the third quarter were C$51 million or C$0.72 per share, with analysts expecting earnings of C$0.39 per share for the quarter.

In economic news from the U.S., the Federal Reserve said industrial production rose by 0.6 percent in September following a 0.4 percent increase in August. Economists had been expecting production to show another 0.4 percent increase. Utilities output surged up by 4.4 percent, while mining and manufacturing output edged up by 0.2 percent and 0.1 percent, respectively.

Meanwhile, pending home sales in the U.S. unexpectedly showed a substantial decrease in the month of September, according to a report released by the National Association of Realtors. NAR said its pending home sales index tumbled 5.6 percent to 101.6 in September from a downwardly revised 107.6 in August. Economists had expected pending home sales to come in unchanged.

Elsewhere,, a leading indicator of euro zone's economic activity continued to rise in September, suggesting moderate positive growth for the economy in 2014, the Conference Board said. The leading economic index rose 0.5 percent from a month earlier in September to 109.6. This followed a 1 percent rise in August and a 0.9 percent increase in July.