CANADA STOCKS-TSX edges higher on resources as Fed eyed

Tue Nov 2, 2010 5:00pm EDT
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 * TSX ends up 16.61 points at 12,681.42
 * 4 of 10 sectors higher; info tech unchanged
 * Investors eye Fed decision due Wednesday
 (Updates to close, adds quote)
 By Jennifer Kwan
 TORONTO, Nov 2 (Reuters) - Toronto's main stock index edged
higher on Tuesday as commodity prices rose as the U.S. dollar
weakened on expectations the U.S. Federal Reserve is set to
inject more money into the economy.
 The index's energy group gained 0.9 percent, while its
materials sector rose 0.2 percent. Canadian Natural Resources
CNQ.TO was up 1.9 percent at C$37.86, and Teck Resources
TCKb.TO advanced 0.5 percent to C$45.77.
 Talisman Energy Inc TLM.TO, Canada's No. 4 independent
oil producer, rose 3.6 percent to C$19.11 after it said its
third-quarter profit rose four-fold on higher natural gas
prices and rising output from its shale gas prospects in North
America. [ID:nSGE6A10EV]
 As a two-day meeting of the Fed's policymaking committee
got under way, the Thomson Reuters-Jefferies CRB index .CRB,
a global commodities benchmark, rose about 1 percent, with the
prices of oil, gold and copper firming in part on a weak U.S.
dollar. [O/R] [GOL/]
 "Everybody and their brother is betting that the U.S. will
launch a program to purchase half a trillion to $1 trillion of
bonds over time to devalue its currency and try and stimulate
employment and inflation," said Barry Schwartz, vice president
and portfolio manager at Baskin Financial Services.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was up 16.61 points, or 0.13 percent, at 12,681.42.
Four of the index's 10 sectors were higher. The information
technology sector was unchanged.
 The greenback fell on Tuesday after a surprise
interest-rate hike in Australia and some positive economic news
in the euro zone, but analysts said it could rebound if the
U.S. central bank disappoints markets at the end of its policy
meeting on Wednesday. [FRX/]
 Markets are generally priced for the Fed to commit to
buying at least $500 billion in bonds over five months to try
to stimulate the economy. [ID:nLDE6A11F2]
 The market was also watching midterm U.S. elections with
polls suggesting Republicans will gain control of the U.S.
House of Representatives, while Democrats retain control of the
Senate. [.N] [ID:nN01165335]
 ($1=$1.01 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)