TSX Ends Higher On Continued Stimulus Hopes - Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fifth straight session on Monday, amid expectations the U.S. Federal Reserve will further continue its quantitative easing program unchanged until March next year. Nonetheless, gains were capped on investor caution ahead of the highly-anticipated U.S. non farm-payrolls report due Tuesday.

Asian markets ended mostly higher with Chinese shares pacing gainers after its Cabinet urged local governments and state departments to implement the planned economic reforms and restructuring measures to help the economy recover from the recent lull. European shares ended mixed ahead of this week's earnings and macroeconomic data.

The S&P/TSX Composite Index closed Monday at 13,186.53, up 50.44 points or 0.38 percent. The index touched an intraday high of 13,190.92 and a low of 13,136.09. The Index added nearly 250 points or 2 percent in the past four straight-sessions.

The Diversified Metals & Mining Index gained 1.36 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.58 percent, Teck Resources Limited (TCK.B.TO) up 1.03 percent, and Lundin Mining Corp. (LUN.TO) gaining 0.89 percent.

The Capped Materials Index added 1.62 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) edging down 0.03 percent.

Gold futures ended higher Monday, as investors look ahead to the upcoming earnings and macroeconomic reports after the sixteen-day U.S. government shutdown which ended last week.

The Global Gold Index gained 2.49 percent, with gold futures for December delivery marginally up $1.20 or 0.1 percent to close at $1,315.80 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 3.32 percent, while Barrick Gold Corp. (ABX.TO) gathered 2.41 percent. Goldcorp Inc. (G.TO) added 2.71 percent, while Kinross Gold Corp. (K.TO) dropped 3.79 percent. Eldorado Gold Corp. (ELD.TO) gathered 3.83 percent.

Crude oil ended sharply lower Monday, after a delayed official weekly oil report from the Energy Information Administration showed crude oil stockpiles in the U.S. to have increased a week ago, albeit less than anticipated.

An Energy Information Administration weekly oil report showed U.S. crude oil inventories to have gained 4.0 million barrels, while gasoline stocks shed 2.60 million barrels in the week ended October 11. Analysts expected crude oil inventories to gain 2.75 million barrels last week.

The Energy Index shed 0.28 percent, with U.S. crude oil futures for December delivery plummeting $1.43 or 1.42 percent to close at $99.68 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc.(SU.TO) gathered 0.27 percent, while Enbridge Inc.(ENB.TO) gained 0.32 percent. Imperial Oil Limited (IMO.TO) ended flat at $46.25 a share, while Talisman Energy Inc. (TLM.TO) slipped 0.24 percent.

The Financial Index added 0.55 percent with Bank of Montreal (BMO.TO) adding 0.54 percent, while Manulife Financial Corp. (MFC.TO) moved up 1.00 percent. The Bank of Nova Scotia (BNS.TO) gained 0.71 percent, while Toronto-Dominion Bank (TD.TO) dropped 0.11 percent. National Bank of Canada (NA.TO) gathered 0.56 percent.

Royal Bank of Canada (RY.TO) announced Monday plans to repurchase for cancellation up to 30 million of its common shares, representing approximately 2.1 per cent of the bank's outstanding common shares as at September 30, 2013. Royal Bank of Canada (RY.TO) gathered 0.53 percent.

The Information Technology Index lost 0.46 percent, although smartphone maker BlackBerry Limited (BB.TO) dropped 1.39 percent.

The Capped Industrials Index moved up 0.46 percent, with Air Canada (AC.B.TO) up 2.12 percent. Bombardier Inc. (BBD.A.TO, BBD.B.TO) jumped 4.33 percent.

Food products company Maple Leaf Foods Inc. (MFI.TO) surged 10 percent after announcing that it is exploring strategic alternatives for its Bakery business, including a potential sale of the Company's 90 percent ownership interest in Canada Bread Company, Ltd.

Print and digital media company Yellow Media (Y.TO) gained 9.66 percent named Julien Billot as its President and Chief executive, effective January 1, 2014, replacing Marc Tellier who left the firm in August. The stock eased 0.35 percent.

In economic news Statistics Canada said wholesale sales rose 0.5 percent to $49.8 billion in August, recording its fourth increase in five months, with the motor vehicle industry leading the contributor to the gain in August. In volume terms, wholesale sales were up 0.3 percent.

In economic news from the U.S., the National Association of Realtors said existing home sales fell 1.9 percent to a seasonally adjusted annual rate of 5.29 million in September from a downwardly revised 5.39 million in August. Economists expected existing home sales to drop to an annual rate of 5.30 million from the 5.48 million originally reported for the previous month.

From the eurozone, Germany's producer prices declined for a second consecutive month in September, a report from Destatis showed. Producer prices dropped 0.5 percent each on a yearly basis in September and August. The September decline exceeded the consensus of 0.7 percent fall.