CANADA STOCKS-Toronto stocks may rebound on resource rally

Mon Nov 2, 2009 8:05am EST
 
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 TORONTO, Nov 2 (Reuters) - Toronto's main stock index may
begin trading in November with a higher start on Monday after a
steep drop the previous week, and as rising key commodity
prices were expected to support the resource-laden index.
 The S&P/TSX composite index .GSPTSE broke its seven-month
rally on Friday, dropping 1.5 percent in the session, and
closing October down 4.25 percent.
 U.S. stock index futures also signaled a rebound on Monday
[ID:nN02425600], and the sentiment may spill over to Toronto
stocks.
 Here is some of the news that may affect the market.
 GOLD, OIL RISE
 Gold rose above $1,050 an ounce, wiping out most of the
previous week's losses, as dollar weakness made bullion cheaper
for holders of other currencies. [GOL/]
 Oil rose above $77 a barrel, recovering from the previous
session's steep drop, after manufacturing data from China
revived expectations economic recovery would generate extra
fuel demand. [O/R]
 DATA ON TAP ECON
 No Canadian data is scheduled for Monday, but the market
may react to U.S. manufacturing data from the Institute of
Supply Management for October. September numbers on
construction spending and pending home sales are also
scheduled. All figures due at 10 a.m. (1500 GMT)
 CIT GROUP
 CIT Group Inc CIT.N, a lender to a million small and
mid-sized U.S. businesses, filed for bankruptcy on Sunday. The
bankruptcy is one of the largest in U.S. corporate history and
could push some small businesses that it finances to look for
new credit in a tough funding environment. [ID:nN01476782]
 RESEARCH ROUNDUP: DOMTAR
 Raymond James upgraded Domtar Corp UFS.TO UFS.N to
"outperform" from "market perform," citing its robust free cash
flow generation, and said it expects the forestry firm to
benefit from U.S. and Canadian government tax programs.
[ID:nBNG245503]
 Other research actions [RCH/CA] on Canadian companies
reported by Reuters on Monday include:
 * National Bank Financial cuts Cogeco Cable CCA.TO to
sector perform from outperform
 * RBC raises Saputo Inc SAP.TO price target
 * Genuity resumes Air Canada ACa.TO with buy, raises
price target
 DEALTALK: Canadian Royalties deal seen unlikely for Jilin
 China's No. 2 nickel producer Jilin Jien's 600423.SS
ambition to expand its Canadian footprint, is facing its
biggest hurdle as investors look set to reject its final bid
for early-stage miner Canadian Royalties CZZ.TO
[ID:nBNG318301]
 CENTRAL BANKS IN SPOTLIGHT
 Investors were bracing for a week of meetings at major
central banks, including the U.S. Federal Reserve and European
Central Bank, the release of minutes from the past meetings of
others and a G20 finance ministers' meeting. [M/DIARY]  At
issue in all cases is the future of the liquidity that has been
behind much of this year's financial market recovery.
 BAY STREET-BANKS, PROPERTY TOP BETS IF C$ STAYS STRONG
 Buyers of Canadian banks, utilities, property firms and
some retailers look set to become long-term winners if the
country's currency -- as many predict -- resumes its recent
rally to top the U.S. dollar in value. But manufacturers,
including auto parts makers, forestry companies, and other
export-reliant industries, are expected to feel further pain.
[ID:nN30411061]
 ($1=$1.08 Canadian)
 (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)