Canadian Stocks Eke Out Modest Gains, Led By Gold Sector -- Canadian Commentary

(RTTNews) - Canadian stocks nudged higher Wednesday, with big gains in the gold sector helping to offset weaker financials.

Metals and energy stocks also rose. Gains in the oil patch came despite a bearish outlook on crude oil prices issued by Citigroup.

The benchmark S&P/TSX Composite Index was up 30.60 points or 0.22 percent to 13,875.33.

The Energy Index was up more than 1 percent, while the Gold Index surged 6.6 percent.

Gold for December delivery gained $14.40, or 1.2 percent, to settle at $1,179.80 an ounce on Comex.

The recent rally in gold has been fueled by indications that the Federal Reserve will avoid raising U.S. interest rates this year.

Bombardier (BBD-A.TO) will target Embraer for possible partnership, the Globe and Mail reports. The plane maker also says is CSeries is on track for certification and the company is committed to the jet. Shares were up sharply.

Alimentation Couche-Tard (ATD-A.TO) was down 2 percent. The convenience store operator said it would buy all stores operated under the Texas Star brand.

Carlisle Goldfields (CGJ.TO) surged up 30 percent, after it announced that it is currently in discussions concerning a potential commercial transaction.

In economic news, U.S. retail sales edged up by 0.1 percent in September, while economists had expected sales to rise by 0.2 percent.

Producer prices in the U.S. fell by more than anticipated in the month of September, according to a report released by the Labor Department on Wednesday, with the decrease largely reflecting a steep drop in energy prices.

The Labor Department said its producer price index for final demand fell by 0.5 percent in September after coming in unchanged in August. Economists had expected the index to dip by 0.2 percent.