November 2, 2010 / 9:05 PM / 8 years ago

CANADA STOCKS-TSX edges higher on resources as Fed eyed

 * 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)                                        

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