CANADA STOCKS-TSX may gain on oil, but sentiment weighs

Wed Sep 2, 2009 8:13am EDT
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 TORONTO, Sept 2 (Reuters) - Toronto's main stock index may
open slightly higher on Wednesday if resource-linked stocks
benefit from a rebound in oil prices, but gains may be
tentative given concerns the equity rally has run its course.
 The S&P/TSX composite index .GSPTSE closed down 178.43
points, or 1.64 percent, at 10,689.78, as investors took
profits and grew cautious about gains that have driven the
index up about 40 percent since early March.
 Similar fretting about the sustainability of this year's
equity rally have hit European and Asian shares as well.
 Here is some of the news that may affect the market.
 Gold prices held near $955 an ounce in Europe, supported by
a dip in the dollar index ahead of key U.S. economic data due
later, which is boosting interest in the precious metal as an
alternative asset. [ID:nL2167301]
 Oil rose above $68 a barrel, after a 3 percent drop in the
previous session, as data showing a fall in U.S. crude stocks
raised expectations of demand growth in the world's biggest
energy consumer. [ID:nL2551377]
 * See also: BP (BP.L: Quote) makes "giant" oil find in Gulf of
Mexico [ID:nL2530648]
 MDS Inc MDS.TO said it has signed an agreement to sell
its MDS Analytical Technologies unit to Danaher Corp (DHR.N: Quote),
as well as its intention to sell its MDS Pharma Services arm.
 Canadian train and aircraft maker Bombardier Inc (BBDb.TO: Quote)
posted a 22 percent decline in quarterly profit, as business
aircraft cancellations continued to exceed the level of new
orders. [ID:nBNG500270]
 * Revised Q2 productivity and unit labor costs data at 8:30
a.m. (1230 GMT) is expected to show a rise of 6.4 percent in
productivity and a 5.8 percent fall in unit labor costs,
matching data in the previous report.
 * Economists expect an increase of 2.2 percent in July
factory orders, compared with a 0.4 percent rise in June. Data
due at 10 a.m.
 * At 2:00 p.m., the Federal Open Market Committee issues
minutes from its meeting of Aug. 11-12.
 Following is a summary of research actions on Canadian
companies reported by Reuters on Wednesday. For more, please
double click [RCH/CA]
 * Raymond James cuts WestJet Airlines (WJA.TO: Quote) to market
perform from outperform
 * Macquarie raises price targets on five Canadian retail
property companies [ID:nBNG528382]
 The Canadian government needs to muster the political will
to ensure the C$16.2 billion Mackenzie Valley natural gas
pipeline is built, the Northwest Territories energy minister
said. [ID:nN01506777]
 Sony Ericsson, Alcatel Lucent SA ALUA.PA and a private
equity arm of JP Morgan (JPM.N: Quote) are among the candidates
shortlisted to buy Nortel Networks Corp's NRTLQ.PK stake in
LG-Nortel, media reported on Wednesday.
 (Reporting by Ka Yan Ng)