TSX Ends Marginally Higher Ahead Of Fed Meet Outcome - Canadian Commentary

(RTTNews) - Canadian stocks ended a shade higher Wednesday, ahead of the U.S. Federal Reserves policy meet outcome and some recent soft macroeconomic data out of China suggesting a slowdown in growth. Investors also weighed the International Monetary Fund report slashing its global growth forecast for a fifth consecutive time. The IMF said China and other emerging economies face new risks "including the possibility of a longer growth slowdown''

European markets ended mostly lower as investor sentiment, impacted by data out of China, and Standard & Poor's lowered the sovereign rating of Italy by one notch, on weak economic prospects.

The S&P/TSX Composite Index closed Wednesday at 12,306.93, up 9.84 points or 0.08 percent. The index touched an intraday high of 12,315.53 and a low of 12,250.06.

The Global Gold Index gained 0.04 percent, with gold futures for August delivery gaining $1.50 or 0.1 percent to close at $1,247.40 an ounce Wednesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 0.73 percent, while Goldcorp Inc. (G.TO) slipped 0.49 percent. IAMGOLD Corp. (IMG.TO) edged up 0.96 percent, while Barrick Gold Corp. (ABX.TO) added 0.20 percent. Kinross Gold Corp. (K.TO) gained 1.25 percent, while B2Gold Corp. (BTO.TO) added 2.90 percent.

The Capped Materials Index shed 0.22 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 1.25 percent.

The Diversified Metals & Mining Index slipped 0.83 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.13 percent and Teck Resources Limited (TCK.B.TO) declined 2.46 percent. Lundin Mining Corp. (LUN.TO) shed 1.28 percent, while Osisko Mining Corp. (OSK.TO) surged 6.92 percent.

The Energy Information Administration's weekly oil report showed U.S. crude oil inventories to have plunged 9.90 million barrels for the week ended July 5. Analysts expected crude oil inventories to drop 2.90 million barrels last week. Meanwhile, gasoline stocks shed 2.60 million barrels in the same period, with analysts expecting a decline of 0.20 million.

The Energy Index gathered 0.72 percent, with U.S. crude oil futures for August delivery surging $2.99 or 2.9 percent to close at $106.52 a barrel Wednesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) gained 0.50 percent, while Enbridge Inc. (ENB.TO) slipped 0.53 percent. Talisman Energy Inc. (TLM.TO) dropped 0.41 percent, while Encana Corp. (ECA.TO) added 0.28 percent. Canadian Natural Resources Limited (CNQ.TO) gained 2.19 percent.

The Financial Index slipped 0.10 percent with Manulife Financial Corporation (MFC.TO) up 0.89 percent, Bank of Nova Scotia (BNS.TO) down 0.23 percent, and Bank of Montreal (BMO.TO) slipped 0.59 percent. Royal Bank of Canada (RY.TO) moved up 0.50 percent.

The Information Technology Index ended flat, with BlackBerry (BB.TO) down 3.92 percent.

The Capped Industrials Index moved up 0.01 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) ending flat at $4.83.

In economic news from the U.S., the Commerce Department said wholesale inventories fell by 0.5 percent in May following a revised 0.1 percent decrease in April. The drop surprised economists, who had been expecting inventories to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.

From the eurozone, Germany's EU harmonized inflation accelerated in June as initially estimated, final data released by the Federal Statistical Office showed. Inflation as per the harmonized index of consumer prices increased to 1.9 percent in June from 1.6 percent in May. The outcome matched the preliminary estimates.

Elsewhere, China posted a merchandise trade surplus of $27.1 billion in June, but were below economists' forecast of a surplus $27.8 billion. Exports were down 3.1 percent from a year ago, below estimates for an increase of 3.7 percent. Imports dipped an annual 0.7 percent compared to forecast of a 6 percent jump.