TORONTO, Oct 6 (Reuters) - Canada’s S&P/TSX composite index .GSPTSE may face pressure on Monday, as oil slipped below $90 a barrel on recession fears and as concerns over the fallout from the U.S. credit woes fanned a global market rout.
Here is some of the news that could affect the market. Reuters has not verified press reports and does not vouch for their accuracy.
Bank of Nova Scotia (BNS.TO), the country’s third largest bank, predicts a Canadian recession that could last well into 2009, CTV news says in a report. [ID:nN06331854]
Bank of Nova Scotia (BNS.TO) said on Monday it planned to spend C$2.3 billion to buy Sun Life Financial’s SLF.TO stake in CI Financial CIX_u.TO. [ID:nN06280146]
The ruling Conservatives are headed for a strengthened mandate but would fall short of a majority of seats in Parliament, says the first major opinion poll taken after Canada’s election debates. [ID:nN05335520]
European governments offer blanket deposit guarantees to savers in an effort to ease fears among investors over the worst financial crisis in 80 years. [ID:nL6259237]
JEAN COUTU GROUP (PJCa.TO)
Jean Coutu Group reports a steep second-quarter loss as it continued to absorb losses from its stake in U.S. pharmacy Rite Aid Corp (RAD.N). [ID:nN06365773]
Canaccord Adams cuts Oilexco Inc target price to C$20 from $C28.50 with a ‘buy’ rating, while Genuity cuts its price target of the company to C$25 from C$29 with ‘buy’ rating. [ID:nBNG112168].
On Friday, the oil explorer slashed its production target because of operating problems and said closing on a planned financing is delayed by the credit crisis. [ID:nN03361109]
The temporary ban on short sales of certain financial stocks is extended until the end of the day on Oct 8, says the Ontario Securities Commission, which oversees trading on the Toronto Stock Exchange. [ID:nN03363081]
OIL CLc1 TUMBLES
Oil falls 4 percent to an eight-month low below $90 a barrel on fears the global credit crisis will bring a steep fall in oil demand. [ID:nSP369815]
Gold rises to $860 an ounce as investors flocked to safety as equity markets tumbled on concerns over a global economic slowdown. [ID:nL6229304], while most base metals fall. [ID:nL6387997]
The value of building permits plummet by 13.5 percent in August from July, according to Statistics Canada data, far more than analysts had expected. [ID:nOTT001411]
UBS cuts Potash Corp of Saskatchewan (POT.TO) price target to $180 from $308, keeps ‘buy’ rating, while it also reduces Agrium Inc (AGU.TO) price target to $80 from $135 and keeps ‘buy’ rating.” [CA-RCH]
IMAX Corp IMX.TO announces new $10 million revolving letter of credit facility with Bank of Montreal, replacing its existing $5 million facility with the bank. [ID:nWNAB5188]
EnCana Corp (ECA.TO) says it has stopped a leak of sweet natural gas at a well on a rural military training ground in southeastern Alberta. [ID:nN03364744] ($1=$1.09 Canadian) (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama )