TSX Ends Slightly Lower On Fed Aftermath - Canadian Commentary

(RTTNews) - Canadian stocks ended a tad lower on Thursday, led mostly by resource stocks even as investors continued to weigh the U.S. Federal Reserve's unexpected decision against scaling down its $85 billion monthly bond-buying program. Investors also digested a slew of upbeat macroeconomic data out of the U.S., indicating positive direction in the country's economy growth.

The Federal Reserve on Wednesday decided to continue with its stimulus program and refrained from scaling down its massive bond-buying program which has been in place since September last. The Federal Open Market Committee maintained its support measures following some disappointing August jobs report that raised concerns about the pace of the U.S. economic recovery.

The S&P/TSX Composite Index closed Thursday at 12,926.78, down 4.62 points or 0.04 percent. The index touched an intraday high of 12,964.86 and a low of 12,892.77.

The Diversified Metals & Mining Index dropped 0.48 percent, with First Quantum Minerals Ltd. (FM.TO) flat at $19.41, while Osisko Mining Corp. (OSK.TO) slipped 1.59 percent. Teck Resources Limited (TCK.B.TO) dipped 0.34 percent and Lundin Mining Corp. (LUN.TO) added 0.63 percent.

The Capped Materials Index shed 1.56 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) shedding 0.72 percent.

The Global Gold Index lost 3.16 percent, although gold futures for December delivery surged $61.70 or 4.7 percent to close at $1,369.30 an ounce Thursday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) shed 3.48 percent, while Yamana Gold Inc. (YRI.TO) dropped 2.18 percent. B2Gold Corp. (BTO.TO) slipped 3.02 percent, while Goldcorp Inc. (G.TO) slumped 4.01 percent. Kinross Gold Corporation (K.TO) shed 3.24percent.

The Energy Index shed 0.27 percent, with U.S. crude oil futures for October delivery dropping $1.68 or 1.6 percent to close at $106.39 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) lost 0.76 percent, Talisman Energy Inc. (TLM.TO) ended flat at $11.53 a share, and Suncor Energy Inc.(SU.TO) shed 0.78 percent. Enbridge Inc. (ENB.TO) gained 1.87 percent.

The Financial Index surrendered 0.37 percent with Bank of Montreal (BMO.TO) up 0.22 percent and Manulife Financial Corp. (MFC.TO) dropping 2.39 percent. The Bank of Nova Scotia (BNS.TO) dipped 0.10 percent, while Toronto-Dominion Bank (TD.TO) shed 0.11 percent. Royal Bank of Canada (RY.TO) dropped 0.11 percent.

The Information Technology Index gained 0.50 percent, with BlackBerry Limited (BB.TO) up 1.69 percent.

The Capped Industrials Index added 0.73 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) ending flat with yesterday at $4.80 a share.

In economic news, a National Association of Realtors report on Thursday showed existing home sales in the U.S. unexpectedly climbed to their highest level in over six years in August. NAR said existing home sales rose 1.7 percent to an annual rate of 5.48 million in August after jumping 6.5 percent to a rate of 5.39 million in July. Economists expected existing home sales to dip to 5.25 million. This is the highest annual rate since February of 2007, when it touched 5.79 million.

The U.S. Labor Department on Thursday said claims for unemployment benefits rebounded less than expected in the week ended September 14. Initial jobless claims rose to 309,000, an increase of 15,000 from the previous week's revised figure of 294,000. Economists expected claims at 341,000.

The previous week's revised figure still reflects a seven-year low for jobless claims, although the data continues to be impacted by technical issues in two states. The Labor Department indicated the data for the latest week was also impacted by computer system upgrades, as the two states were still processing a backlog of claims.

A Federal Reserve Bank of Philadelphia report on Thursday showed manufacturing activity in the mid-Atlantic region picked up in September, with the index of regional manufacturing activity jumping to its highest level in over two years. The Philly Fed's diffusion index of current activity surged to 22.3 in September from 9.3 in August, with a positive reading indicating an increase in manufacturing activity. Economists expected the index to edge up to a reading of 10.0. The increase indicates the Philly Fed Index reached its highest level since hitting 36.1 in March 2011.

Meanwhile, a Conference Board report showed its index of leading U.S. economic indicators rose slightly more than expected in August. The Conference Board's leading economic index rose by 0.7 percent in August following a revised 0.5 percent increase in July. Economists expected the index to increase by 0.6 percent, in line with the growth originally reported for the previous month.

From Europe, U.K. retail sales declined for the first time in four months in August, reflecting weak demand for food. Retail sales volume, including automotive fuel, dropped unexpectedly by 0.9 percent month-on-month in August due to a fall in food sales, a report from the Office for National Statistics showed. Retail sales dropped for the first time in four months and by the most since last October in August. Economists expected sales to rise by 0.4 percent after the 1.1 percent increase in July.