TSX Rally Peters Out Despite Energy Wins -- Canadian Commentary

(RTTNews) - Canadian stocks were flat Wednesday, touching an all-time high before the early rally fizzled. Energy stocks followed crude oil prices sharply higher but weakness emerged among telecoms and industrials.

The TSX Composite Index was down 3.07 points to 16,073.58.

Valeant (VRX.TO) was among the day's better performers, but Constellation Software took it on the chin.

January West Texas Intermediate crude climbed by $1.19, or 2.1%, to settle at $58.02 a barrel on the New York Mercantile Exchange.

Prices have risen in anticipation of OPEC's November 30 meeting. The cartel is expected to extend its supply quota plan through 2018. However, Russia may not follow suit.

Also, energy stocks have been strengthened by news that Nebraska approved a pivotal extension of the Keystone pipeline from Western Canada.

Looking at the U.S., the Federal Reserve on Wednesday hinted that a rate hike is "likely" despite mounting concerns about low inflation.

Low inflation might also be a result of "developments that could prove more persistent," according to the minutes of the Fed's most recent meeting on Oct 31-Nov 1.

At that meeting, the Fed held interest rates steady between 1% and 1.25%.