TSX Ends Lower Amid Fed Concerns - Canadian Commentary

(RTTNews) - Canadian stocks ended lower Tuesday, tracking global equity markets, led by resource stocks with commodities continuing to struggle on fears the U.S. Federal Reserve would scale down its stimulus program by the year end after a some encouraging economic data, including the recent monthly jobs reports out of the U.S. which trounced expectations.

Asian stocks settled lower as investors await comments by major Federal Reserve officials this week for clues about the outlook for U.S. monetary policy. The European markets also ended lower with investors cautious before any big moves.

The S&P/TSX Composite Index closed Tuesday at 13,326.04, down 32.35 points or 0.24 percent. The index touched an intraday high of 13,378.51 and a low of 13,324.70.

Crude oil prices plummeted after the OPEC in a monthly oil market report today said non-OPEC oil supply is estimated to increase by 1.2 mbd in 2013 and forecast to grow by 1.2 mbd in 2014. The US, Canada, Brazil, South Sudan & Sudan, Kazakhstan and Colombia are expected to be the main contributors to next year's growth. Meanwhile, the group maintained its 2014 global oil demand forecast at 1.04 mbd, while nudging up 2013 global oil demand forecast. Crude for December shed $0.21 to $94.82 a barrel.

The Energy Index shed 0.94 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, plunging plunged $2.10 or 2.2 percent to close at $93.04 a barrel Tuesday on the Nymex.

Among energy stocks, Imperial Oil Limited (IMO.TO) added 0.20 percent, while Encana Corp. (ECA.TO) lost 1.80 percent. Suncor Energy Inc. (SU.TO) lost 0.71 percent, while Canadian Natural Resources (CNQ.TO) surrendered 1.17 percent.

The Information Technology Index gained 0.79 percent, with smartphone maker BlackBerry Limited (BB.TO) up 0.15 percent.

The Diversified Metals & Mining Index dropped 1.08 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.21 percent, Osisko Mining Corp. (OSK.TO) down 0.63 percent, and Lundin Mining Corp. (LUN.TO) surrendering 2.76 percent. Teck Resources (TCK_B.TO) lost 2.68 percent.

The Capped Materials Index shed 1.28 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) shedding 1.52 percent.

Gold futures ended lower on Tuesday, on concerns the Federal Reserve would begin scaling down its quantitative easing program by the end of the year, with investors awaiting some key economic data later in the week, including the U.S. trade balance, weekly jobless claims and industrial production.

The Global Gold Index dropped 1.83 percent, with gold futures for December delivery, the most actively traded contract, dropping $9.90 or 0.8 percent to close at $1,271.20 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) down 1.22 percent, while Goldcorp Inc. (G.TO) shed 1.99 percent. Kinross Gold Corp. (K.TO) moved up 0.19 percent, while Eldorado Gold Corp. (ELD.TO) lost 2.15 percent. B2Gold Corp. (BTO.TO) dropped 3.36 percent, while Barrick Gold Corp. (ABX.TO) slipped 0.42 percent.

The Financial Index edged down 0.07 percent with Bank of Montreal (BMO.TO) up 0.19 percent, while Royal Bank of Canada (RY.TO) slipped 0.30 percent. The Bank of Nova Scotia (BNS.TO) moved up 0.02 percent, while Toronto-Dominion Bank (TD.TO) edged down 0.01 percent. National Bank of Canada (NA.TO) jumped 1.14 percent.

The Capped Industrials Index gained 0.15 percent, with Air Canada (AC.B.TO) jumping 4.55 percent, while Bombardier Inc. (BBD.A.TO, BBD.B.TO) shed 2.38 percent.

The Capped Telecommunications Index added 0.50 percent with BCE Inc. (BCE.TO) adding 0.13 percent.

Healthcare company Shoppers Drug Mart Corp (SC.TO) edged up 0.54 percent after reporting a third-quarter adjusted earnings of C$0.88 per share, which was better than analysts estimate of C$0.81 per share for the period.

Yellow Media (Y.TO) slipped 0.47 percent after announcing a 10 percent reduction in its overall workforce resulting from the realignment of its cost structure.

In economic news from the eurozone, Germany's EU harmonized inflation weakened in October at a faster pace than estimated earlier, final figures released by the Federal Statistical Office showed. The harmonized index of consumer prices advanced 1.2 percent in October from the same month of last year, slightly slower than the 1.3 percent gain the government had estimated earlier. In September, prices had recorded a 1.6 percent increase.

Germany's wholesale trade prices declined at the fastest rate since late 2009 in October, data released by Destatis showed. The wholesale price index fell 2.7 percent year-on-year, following a 2.2 percent drop in September. The index dropped for the third successive month and the rate of decline was the biggest since November 2009, when prices decreased 3.7 percent, the agency said.

Elsewhere, U.K. inflation slowed more than expected in October to the lowest since September 2012, official data showed. Nonetheless, it hovers above the 2 percent target. Consumer price inflation dipped to 2.2 percent from 2.7 percent in September, the Office for National Statistics said. It fell below the 2.5 percent consensus.

An indicator of the performance of the British economy rose sharply in September, indicating that the ongoing recovery will continue in the coming months, survey data published by the Conference Board showed. The leading economic index advanced 1.5 percent sequentially to 107 in September. This followed a 1.2 percent gain in August and a 0.7 percent rise in July. Six of the seven components that constitute the leading index made positive contributions in September.