TSX Ends Lower On Global Cues - Canadian Commentary

(RTTNews) - Canadian stocks ended lower Tuesday, tracking declining global equity markets, with investors uncertain if the U.S. Federal Reserve would begin tapering its quantitative easing program sooner than expected. With two top Fed officials, Charles Plosser and William Dudley, indicating improvement in the U.S. economy, markets anxiously await the outcome of the two-day Fed policy review meet due Wednesday.

Most Asian stocks ended lower tracking weak leads from Wall Street overnight, while European markets also ended in the red despite Germany's economic sentiment rising more-than-expected in November to its highest level in four years.

The S&P/TSX Composite Index closed Tuesday at 13,442.60, down 15.46 points or 0.11 percent. The index touched an intraday high of 13,497.51 and a low of 13,442.55.

Crude oil prices ended higher ahead of the inventories report tomorrow, even as investors await the outcome of the Federal Reserve policy meet on Wednesday. The escalating violence in Libya also renewed fears of supply disruption from the region, with continued uncertainties over Iran nuclear talks later this week.

The Energy Index gained 0.43 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, gaining $0.31 or 0.3 percent to close at $93.34 a barrel Tuesday on the Nymex.

Among energy stocks, Imperial Oil Limited (IMO.TO) gained 0.37 percent, while Encana Corp. (ECA.TO) added 2.66 percent. Suncor Energy Inc. (SU.TO) edged up 0.51 percent, while Canadian Natural Resources (CNQ.TO) rose 0.62 percent.

Coastal Energy (CEN.TO) jumped 27 percent after announcing its acquisition by Compañia Española de Petroleos, S.A.U. for C$19.00 per share cash, representing a 28 percent premium to its latest closing price or aggregate value of about C$2.3 billion

The Information Technology Index slipped 1.19 percent, with smartphone maker BlackBerry Limited (BB.TO) down 1.71 percent.

The Diversified Metals & Mining Index shed 0.53 percent, with First Quantum Minerals Ltd. (FM.TO) dropping 1.59 percent and Lundin Mining Corp. (LUN.TO) dipping 0.68 percent. Teck Resources (TCK_B.TO) surrendered 0.63 percent.

The Capped Materials Index edged up 0.07 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) edged up 0.30 percent.

Gold futures settled marginally higher on Tuesday, mostly as physical demand for the precious metal picked up in Asia, after having dropped sharply yesterday over concerns the Federal Reserve would begin tapering its $85 billion quantitative easing program sooner than later.

The Global Gold Index gained 0.64 percent, with gold futures for December delivery, the most actively traded contract, edging up $1.20 or 0.1 percent to close at $1,273.50 an ounce Tuesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 1.15 percent, while Goldcorp Inc. (G.TO) added 0.44 percent. Kinross Gold Corp. (K.TO) gained 1.37 percent, while Eldorado Gold Corp. (ELD.TO) added 0.76 percent. B2Gold Corp. (BTO.TO) dropped 2.11 percent, while Barrick Gold Corp. (ABX.TO) gathered 1.30 percent.

The Financial Index added 0.05 percent with Bank of Montreal (BMO.TO) down 0.19 percent, while Royal Bank of Canada (RY.TO) gained 0.38 percent. The Bank of Nova Scotia (BNS.TO) dipped 0.05 percent, while Toronto-Dominion Bank (TD.TO) shed 0.27 percent. National Bank of Canada (NA.TO) gained 0.37 percent.

The Capped Industrials Index shed 0.52 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) adding 0.65 percent. The company's aerospace unit received firm orders for Q400 NextGen turboprop airliners from Thai carrier Nok Air for about $63 million, which could increase to $258 million.

The Capped Telecommunications Index dropped 0.63 percent with BCE Inc. (BCE.TO) shedding 0.58 percent.

Retailer Sears Canada (SCC.TO), gained 6.37 percent despite reporting a third-quarter loss that widened to C$48.8 million or C$0.48 per share from C$21.9 million or C$0.22 per share last year. Nevertheless, the company declared an extraordinary cash dividend of $5 per share or about $509 million.

In economic news from the U.S., the Labor Department said its employment cost index rose by 0.4 percent in the third quarter following a 0.5 percent increase in the second quarter. Economists had expected the index to rise by another 0.5 percent. Wages and salaries increased by 0.3 percent in the third quarter after rising by 0.4 percent in the second quarter, while benefits rose by 0.7 percent compared to a 0.4 percent increase in the previous quarter.

From the euro zone, Germany's economic sentiment rose more-than-expected in November to its highest level in four years, results of a survey by the Centre for European Economic Research/ZEW showed. The ZEW Indicator of Economic Sentiment for Germany rose to 54.6 from 52.8 in October. Economists had forecast a score of 54. The latest reading is the highest since October 2009, ZEW said.

Elsewhere, the Organization for Economic Co-operation and Development downgraded its global growth projections citing worsening outlook for some emerging economies. The world economy will grow 2.7 percent this year, down from 3.1 percent projected in May, it said. In 2014, growth is forecast to rise to 3.6 percent and then to 3.9 percent in 2015. The estimate for 2014 was lowered from 4 percent.