Tuesday, January 27th-0.6°C
24736
24285

Toronto stock market goes higher; U.S. Fed begins two-day policy meeting

TORONTO - The Toronto stock market racked up a small gain Tuesday as commodities mostly fell despite continuing uncertainty in Iraq, while south of the border the U.S. Federal Reserve began a two-day policy meeting.

The S&P/TSX composite index added 15.46 points to 15,055.89. The Canadian dollar dipped 0.19 of a cent to 92.05 cents US.

Traders were cautious as they awaited the outcome of the Fed meeting and its latest economic outlook, due for release Wednesday.

The meeting is taking place amid news from the U.S. Labor Department that American consumer prices rose 0.4 per cent in May, the biggest one-month jump since February 2013, pushed up by the rising cost of food and gasoline and the biggest hike in airline fares in 15 years.

The U.S. central bank is expected to cut its monthly bond purchases by $10 billion to US$35 billion a month but traders will be looking for clues as to the Fed's intentions on tapering going forward. The stimulus has helped keep long-term borrowing rates low and supported equity markets.

Gareth Watson, vice-president of investment management and research at Richardson GMP Ltd., says there shouldn't be any big surprises from the central bank.

"Ever since they started tapering we haven't really had any surprises out of them. We'll be looking at the language of the release and pay attention to the press conference," he said. "But they've been pretty predictable."

Wall Street was higher, with the Dow Jones industrials up 27.48 points to 16,808.49, the Nasdaq 16.12 points higher at 4,337.23 and the S&P 500 index ahead 4.21 points at 1,941.99.

Meanwhile, after markets closed, Ottawa gave the green light to Enbridge Inc.'s proposed Northern Gateway pipeline, contingent upon the pipeline company satisfying all 209 conditions imposed in December by a joint review panel of the National Energy Board and Canadian Environmental Assessment Agency.

The $7-billion, 1,200-kilometre pipeline would link crude from the Alberta oilsands to a terminal in Kitimat on the British Columbia coast for shipment overseas. It faces stiff opposition from many First Nations and environmentalists.

Shares in Enbridge (TSX:ENB) closed up 45 cents at $51.96 on Tuesday.

Commodity prices were mostly lower after enjoying a bump last week as a result of the deteriorating military situation in Iraq.

About 300 U.S. soldiers are being moved into position to protect the U.S. Embassy and other American interests as President Barack Obama weighs options for dealing with the al-Qaida inspired militants who have captured a vast swath of the country's north. Iraq's crude oil exports have so far not been disrupted, but the conflict had raised concern about whether the country can rebuild its oil infrastructure and meet global demand.

The July crude contract on the New York Mercantile Exchange declined 54 cents to US$106.36 a barrel.

Watson said if the situation in Iraq continues, it may give the Toronto Stock Exchange more support to surpass its record high close of 15,073 set back in June 2008. The TSX has recently been trading near that level, with intraday highs going beyond it.

But if the current oil price is any indication, traders are now in a "wait and see" mode with oil, he said.

"That initial risk premium has been put into oil prices," said Watson. "I don't think traders are willing to push that premium too high until we see further advances by this insurgency."

Investors did not flock to gold either, which is usually seen as safe haven amid geopolitical uncertainty. August bullion was down $3.30 to US$1,272 an ounce, while July copper was up a penny at US$3.06 a pound.

Follow @LindaNguyenTO on Twitter.

The Canadian Press


Read more Business News

24910


Recent Trending




Today's Market
S&P TSX14797.83+18.48
S&P CDNX674.39-3.79
DJIA17678.70+6.10
Nasdaq4771.764+13.885
S&P 5002057.09+5.27
CDN Dollar0.8023+0.0007
Gold1277.20-2.2001
Oil46.80-0.13
Lumber316.00-0.30
Natural Gas2.976+0.095

 
Okanagan Companies
Pacific Safety0.14+0.025
Knighthawk0.010.00
QHR Technologies Inc1.39+0.01
Cantex0.035+0.005
Anavex Life Sciences0.18-0.001
Metalex Ventures0.035-0.005
Russel Metals24.45-0.03
Copper Mountain Mining1.09-0.01
Colorado Resources0.135-0.02
ReliaBrand Inc0.006+0.001
Sunrise Resources Ltd0.055+0.03
Mission Ready Services0.24+0.02

 



24667

FEATURED Property
2183127#117 250 Briarwood Avenue
5 bedrooms 2 baths
$269,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...


What do I pay ICBC for anyway?

If you have had ongoing dealings with ICBC as a result of a car accident than you have likely had the pleasure of dealing with at least two sides of ICBC. Initially the relationship starts off pleasan...

_



24709

24709


Member of BC Press Council


24975