TSX Ends Higher Amid U.S. Debt Deal Hopes - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Tuesday, led mostly by mining and materials stocks amid expectations of an agreement to reopen the federal government and raise the U.S. debt ceiling to avert a default.

Lawmakers indicated strong progress toward reaching a deal that would extend the Treasury Department's borrowing authority until mid-February and end the shutdown that has dragged on for 15 days.

White House spokesman Jay Carney said a final deal was yet to be clinched in the budget and debt stalemate, but indicated there was potential for a solution to the crisis. Carney indicated encouraging progress by the Senate in the talks toward a bipartisan agreement to end the government shutdown and extend the debt limit.

The U.S. Treasury has indicated that unless a deal is through by October 17 to raise the $16.7 billion debt limit ceiling, the world's largest economy is likely to risk a sovereign debt default.

The S&P/TSX Composite Index closed Tuesday at 12,931.46, up 39.35 points or 0.31 percent. The index touched an intraday high of 12,934.50 and a low of 12,839.31. Canadian market remained closed Monday for Thanksgiving day.

The Diversified Metals & Mining Index gained 1.49 percent, with First Quantum Minerals Ltd. (FM.TO) adding 1.34 percent, Teck Resources Limited (TCK.B.TO) up 2.69 percent, and Lundin Mining Corp. (LUN.TO) up 0.67 percent. Osisko Mining Corp. (OSK.TO) gaining 1.80 percent.

The Capped Materials Index jumped 2.10 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) gaining 2.03 percent.

Gold futures ended lower Tuesday, amid signs of progress with the White House and Congress nearing an agreement to end the budget and debt ceiling stalemate.

The Global Gold Index gained 0.08 percent, with gold futures for December delivery slipping $3.40 or 0.3 percent to close at $1,273.20 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) jumped 3.47 percent, while Barrick Gold Corp. (ABX.TO) gained 3.65 percent. Goldcorp Inc. (G.TO) dropped 2.00 percent, while Kinross Gold Corp. (K.TO) added 3.74 percent, Eldorado Gold Corp. (ELD.TO) nudged up 0.33 percent.

Crude oil ended lower Monday, after the dollar turned higher against some major currencies amid signs the White House and Congress are close to an agreement to end the federal government shutdown and raise the U.S. debt ceiling to avert a default.

The Energy Index gained 0.05 percent, although U.S. crude oil futures for November delivery dropped $1.20 or 1.2 percent to close at $101.21 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) gained 0.87 percent, while Enbridge Inc.(ENB.TO) slipped 0.95 percent. Imperial Oil Limited (IMO.TO) gathered 0.91 percent, while Talisman Energy Inc. (TLM.TO) dropped 1.49 percent.

The Financial Index moved up 0.24 percent with Bank of Montreal (BMO.TO) adding 0.57 percent, while Manulife Financial Corp. (MFC.TO) gained 0.51 percent. The Bank of Nova Scotia (BNS.TO) added 0.22 percent, while Toronto-Dominion Bank (TD.TO) slipped 0.21 percent. Royal Bank of Canada (RY.TO) rose 0.28 percent, while National Bank of Canada (NA.TO) gained 0.63 percent.

The Information Technology Index added 1.12 percent, with smartphone maker BlackBerry Limited (BB.TO) gaining 1.80 percent.

The Capped Industrials Index surrendered 0.11 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) shedding 0.40 percent and Air Canada (AC.B.TO) down 3.43 percent.

Oil exploration and production company Athabasca Oil Corp. (ATH.TO) said it has appointed Rob Broen as its chief operating officer effective Saturday. The stock was down 2.44 percent

Communications company Wi-LAN Inc. (WIN.TO) and Hewlett-Packard Co. or HP (HPQ) have reached a patent license agreement and settled all their pending patent litigation. Shares of Wi-LAN jumped 3.16 percent.

Property services company FirstService Corp. (FSV.TO) edged up 0.07 percent after announcing that its residential property management business, FirstService Residential, has acquired Curry Association Management, a division of Curry Investment Company, and Missouri's largest residential property management company.

In economic news, Canada's existing home sales came in at 0.8 percent month-on-month in September, down from 2.8 percent in August.

From the U.S., a report from the Federal Reserve Bank of New York showed its general business conditions index dropped to 1.5 in October from 6.3 in September. While a positive reading indicates an increase in regional manufacturing activity, economists had expected the index to climb to 7.0.

From the euro zone, German economic sentiment climbed to its highest level in more than three years in October, a survey by the Center For European Economic Research or ZEW revealed. The ZEW indicator of economic sentiment increased to 52.8 in October from 49.6 in September. The index reading was the highest since April 2010. Economists had forecast the index to remain the same as in September.

Meanwhile, U.K. inflation remained unchanged at 2.7 percent in September, the report released by the Office for National Statistics showed. Inflation continues to hover above the central bank's 2 percent target. Economists had forecast the annual rate to drop to 2.6 percent.