TSX Up Ahead Of Fed Meeting - Canadian Commentary

(RTTNews) - Canadian stocks were extending gains for a second session Monday morning, with traders awaiting cues from the outcome of a two-day meeting of the U.S. Federal Reserve starting Tuesday. Analysts remain divided on whether the Federal Reserve will announce stimulus tapering at this week's meeting.

Elsewhere, the Asian markets fell toward a three-month low overnight, with uncertainty about the path of U.S. monetary policy and lackluster Chinese data weighing on investor sentiment. Meanwhile, the European markets are trading higher, after data showed that Germany' manufacturing purchasing managers' index increased in December to the highest level in thirty months.

The S&P/TSX Composite Index gained 89.90 points or 0.68 percent to 13,215.60, a day after snapping its two-session losing streak.

The price of gold was moving higher Monday morning, with the US dollar trading weak versus a basket of currencies ahead of a two-day meeting of the U.S. Federal Reserve starting Tuesday. Gold for February delivery added $8.50 to $1,243.10 an ounce.

The Global Gold Index was up over 1 percent, with Barrick Gold (ABX.TO), Goldcorp. (G.TO) and Agnico-Eagle Mines (AEM.TO) adding around 2 percent each.

The price of crude oil was moving higher Monday morning, with the upbeat euro zone manufacturing data lifting trader sentiment. Crude for January edged up $0.87 to $97.47 a barrel.

In the oil patch, Imperial Oil (IMO.TO) moved up over 1 percent.

Oil and gas exploration company Crew Energy Inc. (CR.TO) announced capital program of C$246 million for 2014, focused on the development of liquids rich natural gas at Septimus, British Columbia and light oil at Tower, British Columbia. The stock was up 0.50 percent.

In the financial space, TD Bank (TD.TO), Royal Bank (RY.TO) and Sun Life Financial (SLF.TO) were up over 1 percent each.

Food and drug retailer Loblaw Companies (L.TO) voluntarily recalled and advised customers to discontinue using three types of Life at Home LED 70 count Outdoor Christmas lights, because of the possibility of loose or exposed wires. The stock was up 1.25 percent.

Valeant Pharmaceuticals International, Inc. (VRX.TO) gained nearly 2 percent after it said it would acquire Solta Medical, Inc. (SLTM) for $2.92 per share cash, representing a 40 percent premium to Solta's latest closing price.

Constellation Software Inc. (CSU.TO) gained close to 4 percent after announcing plans to acquire Total Specific Solutions B.V. for about 240 million euros, through its wholly-owned unit Constellation Software Netherlands B.V

Communications services company Wi-LAN Inc. (WIN.TO) edged up 0.30 percent after announcing that it had entered into a patent assignment agreement with Panasonic Corp, pursuant to which Panasonic will give to a WiLAN subsidiary, Collabo Innovations Inc., certain patents from Panasonic Automotive & Industrial Systems Co., one of Panasonic's internal companies.

Meanwhile, precious metals producer Primero Mining Corp. (P.TO) lost about 7 percent after it said it would acquire Brigus Gold Corp's (BRD.TO) in exchange of 0.175 of its common share for each Brigus shares.

Aviation services provider Discovery Air Inc. ( DA_A.TO) surrendered over 5 percent after reporting improved third-quarter net profit of C$3.05 million or C$0.19 per share compared to C$1.23 million or C$0.08 per share in the last year.

In economic news from Canada, foreign investment in Canadian securities amounted to $4.4 billion in October and was focused on instruments from the corporate sector. Meanwhile, Canadian holdings of foreign securities moved lower, hit by sale of US equities.

From the U.S, the Federal Reserve released a report showing industrial production surged up by 1.1 percent in November following a revised 0.1 percent uptick in October. Economists had expected production to rise by 0.6 percent compared to the 0.1 percent drop originally reported for the previous month.

From the euro zone, Germany' manufacturing purchasing managers' index increased in December to the highest level in thirty months, indicating a significantly faster growth in activity, data from a survey by Markit Economics and BME revealed. The seasonally adjusted manufacturing purchasing managers' index climbed to 54.2 in December from 52.7 in November. Economists were looking for a reading of 52.9.

Meanwhile, activity in the euro zone private sector increased at a faster pace in December, and to a larger extent than expected by economists, data from a recent survey revealed. The seasonally adjusted composite output index, which gauges the performance of the manufacturing sector and the service sector, advanced to 52.1 December from 51.7 in November, a survey conducted by Markit Economics showed. Economists were looking for a reading of 51.9.

A report from the Eurostat revealed trade surplus in the euro zone rose to EUR 17.2 billion in October from EUR 9.6 billion in October last year. In September, the surplus amounted to EUR 10.9 billion.