TSX Ends Higher After Fed Minutes -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day loss to end higher on Wednesday, tracking rising global equity markets after the release of the U.S. Federal Reserve's minutes of its June meet, led by financial, technology, gold and material stocks.

The U.S. Federal Reserve plans to completely unwind its asset purchase plan in October as long as the economy continues to pick up, the minutes of its June meeting reveled Wednesday. The Federal Open Market Committee has reduced bond purchases by $10 billion at each meeting since December, and will end by cutting $15 billion in October.

Nonetheless, the minutes offered few signs about the time the Fed might potentially begin tightening interest rates from near zero. However, most Fed officials indicated the winding up of the asset purchase will have no bearing on the timing of the first rate hike.

A notable drop in crude oil prices amid easing worries about supply from Iraq and Russia dragged down energy stocks. Meanwhile, gold stocks moved higher, tracking rising bullion prices.

The S&P/TSX Composite Index closed Wednesday at 15,215.19, up 78.01 points or 0.52 percent. The index scaled an intraday high of 15,216.08 and a low of 15,120.98.

On Tuesday, the index ended down 35.75 points or 0.24 percent at 15,137.18.

Crude oil futures slipped for an ninth day to end lower on easing concerns of supply disruption from the Middle East with reports of increased production and export from Libya.

The Energy Index edged up 0.07 percent, with U.S. crude oil futures for August delivery, the most actively traded contract, dropping $1.11 or 1.1 percent to close at $102.29 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) slipped 0.22 percent, Talisman Energy Inc. (TLM.TO) was down 0.09 percent, Suncor Energy Inc.(SU.TO) gained 0.62 percent, Cenovus Energy Inc. (CVE.TO) shed 0.18 percent, Encana Corp. (ECA.TO) surrendered 0.12 percent, and Imperial Oil Limited (IMO.TO) gained 0.44 percent.

The Financial Index gained 0.57 percent with Toronto-Dominion Bank up 0.56 percent, National Bank of Canada (NA.TO) up 0.96 percent, Bank of Nova Scotia (BNS.TO) up 0.38 percent, and Royal Bank of Canada (RY.TO) added 0.86 percent.

The Capped Healthcare Index shed 0.74 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 1.17 percent and Catamaran Corp. (CCT.TO) dropped 0.75 percent.

Gold futures snapped a three-day loss to end higher ahead of the U.S. Federal Reserve's June policy meet minutes, even as some weak global equity markets prompted investors to seek the safe haven of the precious metal.

The Global Gold Index jumped 2.53 percent, with gold futures for August delivery gaining $7.80 or 0.6 percent to close at $1,324.30 an ounce Wednesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 2.42 percent, Kinross Gold Corp. (K.TO) gained 2.88 percent, Eldorado Gold Corp. (ELD.TO) surged 5.24 percent, and Barrick Gold Corp. (ABX.TO) gained 0.95 percent.

The Capped Materials Index gained 0.55 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 2.06 percent.

The Diversified Metals & Mining Index added 0.95 percent, with Lundin Mining Corp. (LUN.TO) gained 0.48 percent, Teck Resources Limited (TCK.B.TO) added 0.15 percent, and First Quantum Minerals Ltd. (FM.TO) down 0.72 percent.

Technology stocks bounced back after recent losses with the Information Technology Index jumping 1.78 percent. Among tech stocks, BlackBerry Limited (BB.TO) added 4.11 percent and CGI Group Inc. (GIB.A.TO) gained 1.96 percent. Constellation Software Inc. (CSU.TO) gained 2.03 percent, while Avigilon Corp. (AVO.TO) edged down 0.08 percent,

The Capped Industrials Index added 0.92 percent, with Bombardier Inc. (BBD.B.TO) down 1.05 percent and Air Canada (AC.B.TO) up 1.78 percent.

Telecom stocks edged up after suffering heavy losses earlier this week following the announcement of spectrum auction. The Capped Telecommunications Index gained 0.53 percent, with Rogers Communications Inc. (RCI.B.TO) down 0.36 percent, BCE Inc. (BCE.TO) up 0.75 percent, and Telus Corp. (T.TO) up 1.85 percent.

Kirkland Lake Gold Inc. (KGI.TO) slipped 2.51 percent after reporting a net loss of C$11.1 million or C$0.16 per share for fiscal year 2014.

Dominion Diamond Corp. (DDC.TO) added 1.77 percent after revealing an agreement with C. Fipke Holdings Ltd., or FipkeCo, to acquire FipkeCo's 10 percent participating interest in the Ekati Diamond Mine at a price equivalent to the price paid to BHP Billiton in 2013 for its interests.

Empire Co Ltd. (EMP.A.TO) gained 0.11 percent after announcing that it will sell its dairy manufacturing plants in Western Canada to Agropur Cooperative for $356 million.

NSP Maritime Link Inc., a unit of Emera Inc. (EMA.TO), awarded an order of nearly $400 million to Swiss engineering major ABB Ltd. (ABB), for a maritime link power project in Canada. Emera shares gained 1.33 percent.

In economic news, Chinese consumer prices inflation slowed in June from a 4-month high, as food prices increased at a slower rate, a report from the National Bureau of Statistics showed Wednesday. Nevertheless, the increase was slightly below the consensus estimate.

Consumer prices increased 2.3 percent year-on-year in June following the 2.5 percent increase in May. Economists had expected prices to rise 2.4 percent.