Commodities Lift TSX Up Tuesday Morning - Canadian Commentary
(RTTNews.com) - Canadian stocks were hovering in the green Tuesday morning as commodities turned firm even as worries about the U.S. Federal Reserve tapering its support for the economy continued to weigh on investor sentiment.
Elsewhere, the Asian markets fell broadly overnight as investors digested a raft of Chinese data and looked ahead to next week's Federal Reserve policy meeting for fresh clues about the stimulus outlook. The European markets are mostly trading higher amid mixed signals of growth from China.
Federal Reserve Bank of Dallas President Richard Fisher said in a speech in Chicago on Monday that the Fed needs to begin tapering at the earliest opportunity and cease from interfering with the normal price-setting functioning of financial markets.
The S&P/TSX Composite Index rose 35.37 points or 0.27 percent to 13,348.15, after adding just over 100 points or nearly 1 percent in the past two sessions.
The price of gold was extending gains Tuesday morning, with the US dollar trading weak versus a basket of major currencies. Gold for February rose $29.10 to $1,263.30 an ounce.
Among gold stocks, Royal Gold (RGL.TO) gained 7 percent, while Agnico-Eagle Mines (AEM.TO) and Barrick Gold (ABX.TO) adding nearly 6 percent. Goldcorp. (G.TO) and Alamos Gold (AGI.TO) were up over 3 percent each.
First Majestic Silver (FR.TO) gained nearly 7 percent, while Silver Wheaton (SLW.TO) adding 3 percent.
The price of crude oil was moving higher Tuesday morning with a recent batch of strong US economic data lifting investor sentiment. Meanwhile, Chinese retail sales growth accelerated in November to the strongest pace so far this year, while industrial production and fixed asset investments trailed forecasts, the latest figures from the National Bureau of Statistics revealed, giving mixed signals on the prospects of the economy.
Crude for January added $0.92 to $98.26 a barrel.
Baytex Energy Corp. (BTE.TO) added over 1 percent.
Talisman Energy (TLM.TO) gathered 1.50 percent after announcing that two of its affiliates would divest about 12 percent equity interest in the Ocensa Pipeline in Colombia to an investment group led by Advent International for a total cash consideration of about $595 million.
Grain handler Vitran Corp. Inc. (VTN.TO) jumped over 10 percent after it said it would be acquired by 2398946 Ontario Inc., an affiliate of Manitoulin Transport Inc. for $6.00 in cash per share.
Meanwhile, Centamin plc (CEE.TO) shed over 1 percent after it said it would acquire Ampella Mining Ltd. via an off-market takeover deal in exchange of one new Centamin share for every five Ampella shares held, representing a 113 percent premium to Ampella's last closing price of A$0.075
In economic news from the U.S., the Commerce Department said wholesale inventories jumped by 1.4 percent in October following an upwardly revised 0.5 percent increase in September. Economists had been expecting inventories to increase by about 0.4 percent, matching the growth originally reported for the previous month. Further, the Commerce Department said wholesales sales also increased by 1.0 percent in October after rising by an upwardly revised 0.8 percent in September.
Elsewhere, U.K.'s industrial as well as manufacturing output growth slowed in October as expected by economists, the Office for National Statistics showed. Both industrial and manufacturing output grew 0.4 percent each. The rates matched economists' expectations. Overall industrial production had increased 0.9 percent in September and manufacturing by 1.2 percent.
Meanwhile, the U.K. visible trade gap narrowed to GBP 9.7 billion in October from GBP 10.1 billion in September, the Office for National Statistics revealed. The visible trade deficit with EU countries widened to GBP 6.5 billion from GBP 6.2 billion in September. Meanwhile, the shortfall with non-EU nations narrowed to GBP 3.3 billion from GBP 3.9 billion.
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