TSX Settles Lower Ahead Of Fed Meet Outcome - Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end marginally lower Tuesday, with investors tracking some declining global equity markets, even as the U.S. Federal Reserve's policy review meet began earlier today. Investors remain focused on the Federal Reserve policy meet outcome, with the central bank widely expected to begin tapering its US$85 billion monthly bond-buying program.

Elsewhere, the Asian markets ended mixed, although gains remained muted ahead of the Federal Reserve meet and the Bank of Japan's rate review on December 19-20. The European markets also ended higher, notwithstanding worries over the Fed's move and some upbeat macroeconomic data.

The S&P/TSX Composite Index closed Tuesday at 13,180.09, down 4.32 points or 0.03 percent. The index scaled an intraday high of 13,224.83 and a low of 13,169.96.

Crude oil ended lower Tuesday with investors awaiting the outcome of the U.S. Federal Reserve policy review meet that began earlier today. The market expects the Fed to begin tapering of its 85 billion monthly bond-buying program at the conclusion of the two-day meet.

The Energy Index dropped 0.46 percent, with U.S. crude oil futures for January delivery, the most actively traded contract, shedding $0.26 or 0.3 percent to close at $97.22 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) shed 0.44 percent while Suncor Energy Inc. (SU.TO) dropped 1.39 percent. Talisman Energy Inc. (TLM.TO) dropped 0.90 percent, while Encana Corp. (ECA.TO) slipped 0.26 percent.

The Information Technology Index added 1.68 percent, with smartphone maker BlackBerry Limited (BB.TO) down 1.07 percent.

The Diversified Metals & Mining Index dropped 0.37 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.47 percent and Lundin Mining Corp. (LUN.TO) surrendering 0.98 percent. Teck Resources Limited (TCK.B.TO) shed 0.53 percent, while Osisko Mining Corporation (OSK.TO) gained 0.66 percent.

The Capped Materials Index moved up 0.26 percent. Fertilizer maker, Potash Corp. (POT.TO) gained 1.94 percent, while Agrium Inc. (AGU.TO) moved up 0.0.83 percent.

Gold futures snapped a two-day gain to end lower Tuesday, on some upbeat economic data from the U.S., even as investors anxiously await the outcome of the two-day U.S. Federal Reserve policy review meet.

The Global Gold Index fell 0.28 percent, with gold futures for February delivery, the most actively traded contract, dropping $14.30 or 1.2 percent to close at $1,230.10 an ounce Tuesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) ended flat at $4.88 a share, while Barrick Gold Corp. (ABX.TO) added 1.00 percent. Yamana Gold Inc. (YRI.TO) dropped 1.29 percent.

The Financial Index dropped 0.08 percent with Bank of Montreal (BMO.TO) down 0.46 percent, and Royal Bank of Canada (RY.TO) down 0.36 percent. The Bank of Nova Scotia (BNS.TO) slipped 0.08 percent and Toronto-Dominion Bank (TD.TO) adding 0.17 percent.

The Capped Industrials Index dropped 0.35 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) shedding 1.31 percent.

In economic news, Statistics Canada said manufacturing sales rose to its highest level since May 2012, gaining 1 percent to $50.1 billion in October 2013. The sales increase in October was mostly aided by higher sales in the food industry. Sales also rose notably in the chemical industry.

In economic news from the U.S., the Labor Department said its consumer price index was unchanged in November after edging down by 0.1 percent in October. The flat reading for the index came in line with economist estimates. Meanwhile, the core consumer price index, which excludes food and energy prices, rose by 0.2 percent in November following a 0.1 percent uptick in the previous month. Economists had expected core prices to inch up by another 0.1 percent.

U.S. homebuilder confidence improved much more than anticipated in December, an encouraging sign for the housing market going into 2014, a report from the National Association of Home Builders showed Tuesday. The NAHB/Wells Fargo Housing Market Index climbed to 58 in December from 54 in November. Economists expected the index to edge up to 55. With the bigger than expected increase, the index reached its highest level since a matching reading in August, which represented a near eight-year high.

Elsewhere, eurozone inflation rose to 0.9 percent in November from 0.7 percent a month ago, Eurostat reported. The rate matched the flash estimate published on November 29. The statistical office revised core inflation down to 0.9 percent from 1 percent. The rate was slightly above October's 0.8 percent. Month-on-month, consumer prices slipped 0.1 percent in November.

Meanwhile, U.K. inflation slowed to 2.1 percent in November from 2.2 percent in October, the Office for National Statistics showed. The rate was forecast to remain at 2.2 percent in November. Inflation is now slightly above the 2 percent target.

Germany's economic confidence increased to the highest level in nearly seven years in December, and also to a larger extent than expected by economists, latest data showed. The ZEW indicator of Economic Sentiment climbed to 62 in December from 54.6 in November, results of a survey conducted by the Centre for European Economic Research/ZEW revealed. Economists expected a slower increase to 55.