TSX closes higher as CP Rail, gold stocks climb

TORONTO (Reuters) - Canada's main stock index climbed on Tuesday, lifted by Canadian Pacific Railway Ltd's profit outlook and a rally in gold shares, which rose with the price of the precious metal as investors speculated on U.S. Fed actions.

Canadian Pacific said its aggressive efficiency push would pay off in a 40 percent increase in earnings this year, sending its shares to an all-time high. The stock climbed 3.1 percent to C$116 .22.

Gold rose on short-covering and expected continuation of loose U.S. monetary policies.

The gains were, however, kept in check by a fall in financials and a 3.4 percent decline in Research In Motion Ltd shares, triggered by investor caution ahead of the BlackBerry 10 launch on Wednesday.

The market pullback follows a recent rally in the stock in the run-up to the launch.

"Tomorrow is the big day. But it will be sometime before it's discernible whether or not it is in fact the great success they're hoping for," said Michael Sprung, president of Sprung Investment Management.

"It's a coin toss. At the end of the day, no one can predict the success of BB10. It's a speculative stock," he added.

The Toronto Stock Exchange's S&P/TSX composite index <.gsptse> was up 14.65 points, or 0.11 percent, at 12,830.56. Seven of the 10 main sectors on the index advanced.

While the Fed is not expected to change its stance after deciding only in December to loosen conditions further, investors are watching to see if changes in the membership of the policy-setting committee for 2013 could signal a shift in the future.

"The expectation is that little will change other than probably some comment with respect to the eventual exit (from the stimulus). Right now it will be a reaffirmation of the low interest rate policy," said John Ing, president of Maison Placements Canada.

He said his expectation for the gold sector this year is quite bullish. "Gold has been pretty good refuge in order to maintain, to hedge the depreciation in the value of currencies," he said.

The materials sector, which includes mining stocks, played the biggest role in leading the market higher, rising 0.7 percent. The group was boosted by a 0.5 percent rise in gold prices.

Goldcorp Inc rose 1.7 percent to C$36.11, and Yamana Gold added 2.7 percent to C$16.65.

CP Rail helped the industrials sector gain 0.9 percent.

(Editing by Dan Grebler)

Source: http://news.yahoo.com/tsx-may-open-lower-fomc-eyed-134417739--sector.html

dear abby WRAL John Harbaugh jill biden jill biden Lumineers martin luther king jr