TSX Ends Higher On Resource Stocks - Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end higher on Tuesday, after some better than expected consumer confidence data from the U.S., with investor focused on the outcome of the two-day Federal Reserve's policy meet. The uptick was led mostly by resource stocks, with mining and energy sectors making headway.

Elsewhere, Asian markets settled mixed with investors wary of taking aggressive positions ahead of the two-day policy meet of the Fed Reserve. Meanwhile, most European markets ended higher, snapping a three-day losing streak, as investors digested encouraging earnings results.

In economic news, consumer confidence in the U.S. improved for a second consecutive month, with the index rising more than expected in January, a Conference Board report showed Tuesday.

Meanwhile, home prices in major U.S. metropolitan areas rose slightly more than expected in November, a report released by Standard & Poor's said Tuesday. New orders for U.S. manufactured durable goods unexpectedly dropped in December, with orders for transportation equipment showing a substantial decrease, the Commerce Department said.

The S&P/TSX Composite Index closed Tuesday at 13,687.66, up 105.37 points or 0.78 percent. The index scaled an intraday high of 13,706.45 and a low of 13,583.00. The main index lost just over 400 points or about 3 percent in the last three sessions.

The Global Gold Index dropped 0.13 percent, with gold futures for February delivery, the most actively traded contract, shedding $12.60 or 1.0 percent to close at $1,2250.80 an ounce Tuesday on the Nymex.

Among gold stocks, Goldcorp Inc. (G.TO) gained 2.66 percent, while Barrick Gold Corp. (ABX.TO) gathered 1.70 percent. Yamana Gold Inc. (YRI.TO) added 1.56 percent, while Kinross Gold Corp. (K.TO) gained 2 percent.

The Capped Materials Index gained 1.85 percent, with fertilizer giant Potash Corp. of Saskatchewan Inc. (POT.TO) gaining 0.39 percent.

Crude oil ended sharply higher Tuesday after some upbeat economic data from the U.S. lifted demand growth prospects for oil.

The Energy Index added 1.05 percent, with U.S. crude oil futures for March delivery, the most actively traded contract, jumped $1.69 or 1.8 percent to close at $97.41 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) gathered 2.63 percent, while Suncor Energy Inc. (SU.TO) added 1.10 percent. Talisman Energy Inc. (TLM.TO) slipped 0.56 percent, while Encana Corp. (ECA.TO) gained 1.40 percent.

The Information Technology Index gained 2.39 percent, although smartphone maker BlackBerry Limited (BB.TO) adding 3.14 percent.

The Diversified Metals & Mining Index gathered 2.89 percent, with Teck Resources Limited (TCK.B.TO) gained 3.16 percent and Lundin Mining Corp. (LUN.TO) added 2.87 percent.

First Quantum Minerals (FM.TO) gathered 2.62 percent after announcing it has signed a mandate letter for a $2.5 billion, five-Year term loan and revolving facility with lead arrangers and underwriters, Standard Chartered Bank and BNP Paribas.

The heavyweight Financial Index gained 0.49 percent with The Bank of Nova Scotia (BNS.TO) adding 0.31 percent and Toronto-Dominion Bank (TD.TO) moved up 0.15 percent. Royal Bank of Canada (RY.TO) added 0.23 percent and Manulife Financial Corporation (MFC.TO) gained 1.51 percent.

Bank of Montreal (BMO.TO) trimmed 1 percent after it said it would, through its subsidiary BMO Global Asset Management (Europe) Limited, acquire F&C Asset Management plc (FCAM.L) for about C$1.3 billion. F&C shareholders will be entitled to receive 120 pence in cash for each F&C share held.

The Capped Industrials Index moved up 0.19 percent with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 2.82 percent and Air Canada (AC.B.TO) declining 12.30 percent.

In economic news from the U.S, the Commerce Department said durable goods orders tumbled by 4.3 percent in December following a revised 2.6 percent increase in November. The drop in orders came as a surprise to economists, who had expected orders to increase by about 1.8 percent compared to the 3.4 percent growth that had been reported for the previous month.

Consumer confidence in the U.S. improved for the second consecutive month in January, with the index climbing to 80.7 in January from a downwardly revised 77.5 in December, rising more than expected, a report from the Conference Board showed Tuesday. Economists expected the index to edge up to 79.0 from the 78.1 originally reported for the previous month.

Home prices in major U.S. metropolitan areas rose slightly more than expected in November, a report from Standard & Poor's showed Tuesday. The S&P/Case-Shiller 20-City Composite Home Price Index rose 0.9 percent on a seasonally adjusted basis in November compared to a 1.1 percent increase in October. Economist expected the index to increase by 0.8 percent. However, on a non-seasonally adjusted basis, the 20-City Composite Home Price Index edged down 0.1 percent in November after inching up 0.2 percent in the previous month.

From the eurozone, Germany's import prices dropped for a twelfth successive month in December, but at a weaker rate than in the previous month, data from the Federal Statistical Office revealed. The import price index dropped 2.3 percent in December from the corresponding month of 2012. This followed a 2.9 percent fall in November. Prices have now fallen regularly since December 2012. Economists had forecast a slower decline of 2.2 percent for December 2013.

Elsewhere, the U.K. economy expanded as expected by economists in the fourth quarter, but the rate of expansion slowed marginally, preliminary estimate from the Office for National Statistics showed. Gross domestic product grew 0.7 percent from the prior quarter, when it grew 0.8 percent. The fourth quarter rate matched economists' expectations.