TSX Ends Higher Despite Fed Concerns - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Wednesday, tracking rising U.S. equity markets amid steady commodities, led by financial and energy shares, notwithstanding concerns over prospects of the Federal Reserve slashing its monthly bond-buying program as early as December this year.

Asian stocks ended lower after China's third plenum meeting failed to outline steps to curb state dominance of the economy, indicating that markets would play a "decisive" role in allocating resources. Weak data on Japanese core machine orders and renewed concerns that the U.S. Federal Reserve may start reducing its bond-buying program in the foreseeable future also kept investors on the sidelines.

European markets also ended lower as investors remained cautious amid a mixed bag of earnings news, with lingering fears over the Fed tapering.

The S&P/TSX Composite Index closed Wednesday at 13,370.66, up 44.62 points or 0.33 percent. The index touched an intraday high of 13,379.29 and a low of 13,289.75.

U.S. crude oil rebounded to end higher Wednesday, recouping some of the hefty losses recorded yesterday, ahead of the official weekly oil inventory report with investors optimistic of a dip in supplies with news of protests in Libya.

The Energy Index added 0.86 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, gaining $0.84 or 0.9 percent to close at $93.88 a barrel Wednesday on the Nymex.

Among energy stocks, Imperial Oil Limited (IMO.TO) gained 1.23 percent, while Encana Corp. (ECA.TO) lost 0.05 percent. Suncor Energy Inc. (SU.TO) added 2.00 percent, while Canadian Natural Resources (CNQ.TO) gained 0.47 percent.

The Information Technology Index gained 0.90 percent, with smartphone maker BlackBerry Limited (BB.TO) up 0.44 percent.

The Diversified Metals & Mining Index dropped 1.97 percent, with First Quantum Minerals Ltd. (FM.TO) plunging 4.28 percent, and Lundin Mining Corp. (LUN.TO) surrendering 2.84 percent. Teck Resources (TCK_B.TO) edged up 0.07 percent.

The Capped Materials Index inched up 0.02 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) adding 0.47 percent.

Gold futures ended lower for a fifth straight session Wednesday, after trending up for most of the day, on continued concerns over the U.S. Federal Reserve next move on scaling down its quantitative easing program.

The Global Gold Index gained 0.34 percent, with gold futures for December delivery, the most actively traded contract, dropping $2.80 or 0.2 percent to close at $1,268.40 an ounce Wednesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) ended flat at C$9.80, while Goldcorp Inc. (G.TO) added 0.56 percent. Kinross Gold Corp. (K.TO) moved up 0.78 percent, while Eldorado Gold Corp. (ELD.TO) lost 0.59 percent. B2Gold Corp. (BTO.TO) gained 0.87 percent, while Barrick Gold Corp. (ABX.TO) added 0.69 percent.

The Financial Index added 0.65 percent with Bank of Montreal (BMO.TO) up 0.87 percent, while Royal Bank of Canada (RY.TO) added 1.69 percent. The Bank of Nova Scotia (BNS.TO) moved up 0.70 percent, while Toronto-Dominion Bank (TD.TO) edged up 0.38 percent. National Bank of Canada (NA.TO) up 0.62 percent.

The Capped Industrials Index gained 0.52 percent, with Air Canada (AC.B.TO) up 0.87 percent, while Bombardier Inc. (BBD.A.TO, BBD.B.TO) moved up 1.11 percent.

The Capped Telecommunications Index shed 0.20 percent with BCE Inc. (BCE.TO) adding 0.13 percent.

Oil and gas company TransGlobe Energy (TGL.TO) gained 5.12 percent after reporting improved third-quarter net income of $16.3 million or $0.22 per share, compared with $11.7 million or $0.16 per share last year.

Drugstore and general merchandiser Loblaw Companies (L.TO) dived 7.55 percent after reporting adjusted net earnings of C$220 million or C$0.78 per share, down from prior year's C$228 million or C$0.81 per share.

Aviation-training and simulation products provider CAE Inc. (CAE.TO) shed 0.58 percent despite reporting improved second-quarter net income at C$38.3 million or C$0.15 per share from C$35.6 million or C$0.14 per share last year.

Food retailer and distributor METRO Inc. (MRU.TO) lost 5.65 percent after its fourth quarter net earnings dropped 42.4 percent to C$83.6 million or C$0.88 per share compared to prior year's C$145.1 million or C$1.46 per share.

Retailer Rona Inc. (RON.TO) surrendered 2.89 percent even after reporting its third-quarter adjusted net income declined to C$30.0 million or C$0.25 per share from C$33.5 million or C$0.28 per share last year. Analysts expected a loss of C$0.30 per share for the quarter.

In economic news, industrial production in the euro area decreased more-than-expected in September, after recording a modest growth in the previous month, latest data showed. Industrial production dropped a seasonally adjusted 0.5 percent month-on-month in September, reversing the previous month's 1 percent increase, statistical office Eurostat said. Economists had forecast a 0.3 percent contraction for September.

British unemployment claims declined more than expected by economists in October, while the jobless rate edged lower in the three-months to September, data from the Office for National Statistics showed. The claimant count for October fell by 41,700 from a month earlier to 1.31 million, the lowest level since January 2009. Economists had forecast a decline of 30,000. The claimant count rate fell to 3.9 percent from 4 percent in September.

Elsewhere, China's Communist Party agreed to offer bigger role for markets in the world's second largest economy as part of sweeping reforms outlined by party leadership during the Third Plenum that concluded in Beijing on Tuesday, with out providing further details.