TORONTO, Feb 8 (Reuters) - Canada’s main stock market index could open higher on Monday as firm gold and energy prices and a deal by Canpotex to sell about 350,000 tonnes of potash to China’s Sinofert 0297.HK could help boost the commodity-laden index.
But persistent worries over euro zone sovereign debt could temper the gains.
Toronto’s main stock market index fought its way to a higher close on Friday, pushed up by Barrick Gold Corp (ABX.TO) and other heavyweight gold miners, after touching a three-month low earlier in the day. [ID:nN05113397]
Here is some of the news that may affect the market.
The euro and growth-linked currencies fell on Monday as investors unwound risky trades amid growing worries about euro zone’s debt problems, dismissing assurances from European finance ministers at the weekend. [ID:nTOE61702V]
Canpotex, the export arm of Canadian potash producers, said on Monday it signed a deal to sell about 350,000 tonnes of potash to China’s Sinofert 0297.HK at competitive prices. [ID:N08104080]
Oil held above $71 a barrel on Monday, supported by a weaker U.S. dollar and as some investors viewed the previous session’s decline to a near two-month low as a buying opportunity.[nSGE61708E]
Gold rose in Europe on Monday, rebounding from Friday’s three-month low, as the dollar weakened against the euro, encouraging investors to buy into the metal at lower prices.[ID:nLDE6170V7]
Potash Corp of Saskatchewan (POT.TO) bought an additional 1.4 percent of fertilizer and specialty chemicals maker Israel Chemicals (ICL) (ICL.TA), raising its stake to 13.9 percent, ICL said on Sunday. [ID:nLDE61604R]
Technology licensing firm Wi-LAN Inc WIN.TO said on Monday that it has signed a letter of intent to settle a lawsuit filed against it by Canada’s No. 2 phone company, Telus Corp (T.TO).[ID:nN08135143]
Canadian transportation company Vitran Corp VTN.TO posted a narrower quarterly loss, helped by a smaller loss from operations at its less-than-truckload segment.[nSGE6170HP]
Following is a summary of research actions on Canadian companies reported by Reuters on Monday. [RCH/CA]
* RBC cuts Shoppers Drug Mart Corp SC.TO price target to C$52 from C$56; Rating Outperform
* RBC cuts Canadian Tire Corp CTCa.TO price target to C$63 from C$64; Rating Sector Perform
* UBS raises BCE Inc (BCE.TO) price target to C$29.50 from C$29; Keeps Neutral rating
* UBS cuts Manitoba Telecom Services Inc MBT.TO price target to C$32 from C$34; Keeps Neutral rating. ($1=$1.07 Canadian) (Reporting by Scott Anderson)