TSX Ends Marginally Higher Ahead Of Fed Meet - Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day loss to end higher on Friday, as investors awaited cues from the the upcoming U.S. Federal Reserve policy review meet next week, with focus on whether the U.S. Federal Reserve will begin tapering down its US$85 billion monthly U.S. Federal Reserve . Nonetheless, the gains were capped by falling financial and energy stocks with declining oil prices.

Elsewhere, Asian stocks turned in a mixed performance as investors remained cautious of the Fed action at its policy meeting next week. Nevertheless, bargain hunters emerged after recent sell-offs, capping the downside to a large extent. The European markets also ended mixed, with downside limited following three days of losses.

The S&P/TSX Composite Index closed Friday at 13,125.70, up 11.31 points or 0.09 percent. The index scaled an intraday high of 13,144.56 and a low of 13,098.01. The main index shed just over 200 points or nearly 2 percent in the past two sessions.

Crude oil ended lower on Friday, as investors mulled over the possibility of the U.S. Federal Reserve tapering its $85 billion monthly bond-buying program at its upcoming meeting scheduled next week. The possibility of excess supply was also a dampener for oil following reports of an increase in Libyan oil production with three ports scheduled to open this week.

The Energy Index gained 0.05 percent, with U.S. crude oil futures for January delivery, the most actively traded contract, dropping $0.90 or 0.9 percent to close at $96.60 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) shed 0.35 percent and Suncor Energy Inc. (SU.TO) was down 0.56 percent. Talisman Energy Inc. (TLM.TO) gained 0.57 percent, while Encana Corp. (ECA.TO) added 0.26 percent.

Oil and gas explorer and producer Longview Oil Corp. (LNV.TO) was down 5.14 percent after announcing a 44 percent increase in capital program.

Natural gas and electricity retailer Just Energy Group, Inc. (JE.TO) added 1.22 percent after indicating it would sell Terra Grain Fuels Inc, an ethanol producer located in Belle Plaine, Saskatchewan, to a group of Saskatchewan businesses. The sale removes approximately $68 million of debt from Just Energy's balance sheet.

The Information Technology Index gained 0.18 percent, with smartphone maker BlackBerry Limited (BB.TO) adding 2.07 percent.

The Diversified Metals & Mining Index shed 0.19 percent, with First Quantum Minerals Ltd. (FM.TO) dropping 1.16 percent and Lundin Mining Corp. (LUN.TO) adding 0.24 percent. Teck Resources Limited (TCK.B.TO) dipped 0.08percent, while Osisko Mining Corporation (OSK.TO) jumped 3.50 percent.

The Capped Materials Index added 0.46 percent. Fertilizer maker, Potash Corp. (POT.TO) added 0.90 percent, while Agrium Inc. (AGU.TO) gained 0.74 percent.

Gold futures snapped a two-day loss to end higher Friday after recording a hefty loss yesterday, with investors awaiting cues on the U.S. Federal Reserve's quantitative easing program next week.

The Global Gold Index gained 0.38 percent, with gold futures for February delivery, the most actively traded contract, adding $9.70 or 0.8 percent to close at $1,234.60 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) ended flat at $4.88 a share, while Barrick Gold Corp. (ABX.TO) added 1.60 percent. Yamana Gold Inc. (YRI.TO) dropped 0.33 percent, while IAMGOLD Corp. (IMG.TO) edged up 0.28 percent.

The Financial Index added 0.04 percent with Bank of Montreal (BMO.TO) down 0.29 percent, Royal Bank of Canada (RY.TO) up 0.16 percent, the Bank of Nova Scotia (BNS.TO) down 0.03 percent, and Toronto-Dominion Bank (TD.TO) down 0.17 percent.

The Capped Industrials Index dropped 0.20 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) adding 0.22 percent.

In economic news from the U.S., the Labor Department said its producer price index edged down by 0.1 percent in November following a 0.2 percent drop in October. The modest decrease was in line with economists estimate. Meanwhile, core producer prices, which exclude food and energy prices, inched up by 0.1 percent in November after rising by 0.2 percent in October. The uptick in core prices also matched expectations.

From the eurozone, Germany's wholesale prices declined for a fourth consecutive month in November, data from the Federal Statistical Office showed. The wholesale price index fell 2.2 percent year-on-year in November following a 2.7 percent decline in October. On a monthly basis, prices dropped 0.2 percent in November.

Employment in the euro area stayed unchanged for the second successive quarter in the three months to September, data from Eurostat revealed. At the end of the third quarter, the seasonally adjusted number of employed persons in the currency bloc was unchanged from the preceding three-month period. In the second quarter also there was no change in the employment level.

Elsewhere, U.K. construction output recovered in October, boosting hopes of strong recovery in the fourth quarter, the Office for National Statistics said. Construction output gained 2.2 percent month-on-month, after declining 0.5 percent in September. The growth was driven by the strength in new work, and repair and maintenance.

Meanwhile, Japan's industrial production grew 1 percent in October from the prior month, faster than the 0.5 percent rise initially estimated, final data from the Ministry of Economy, Trade and Industry showed.