* TSX ends up 16.61 points at 12,681.42
* 4 of 10 main sectors higher; techs unchanged (Adds details, 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 fourfold 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 finished up 16.61 points, or 0.13 percent, at 12,681.42. Four of the index’s 10 main sectors were higher. The information technology sector was unchanged.
The blue chip S&P/TSX 60 index .TSE60 closed 0.57 points higher, or 0.08 percent, at 727.46.
The greenback fell on Tuesday after a surprise 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 House of Representatives, while Democrats retain control of the Senate. [.N] [ID:nN01165335]
Potash Corp POT.TO remained in the spotlight as the federal government neared a decision on whether to allow BHP Billiton’s (BHP.AX) $39 billion takeover bid for the world’s top fertilizer producer to proceed. The stock was down 1.6 percent at C$146.27. [ID:nN02206060]
A decision is due by the end of Wednesday. By law, Ottawa must decide whether the takeover would offer a net benefit to Canada.
($1=$1.01 Canadian) (Additional reporting by Ka Yan Ng; editing by Rob Wilson)