CANADA STOCKS-TSX eyes commodity prices, U.S. stimulus plans

Tue Feb 10, 2009 8:52am EST
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TORONTO Feb 10 (Reuters) - Toronto's main stock index may open flat as rising commodity prices, which should support the resource-laden index, duel for attention with U.S. stimulus plans.

Focus is on the stimulus package, as the U.S. Senate is expected to approve a plan worth more than $800 billion. Uncertainty about the timing and contents may keep investors on edge. For more, please see: [ID:nN26365728]

Eyes will also be on U.S. Treasury Secretary Timothy Geithner, who is due to unveil at 11 a.m. (1600 GMT) a plan that will include measures for relieving banks of money-losing assets.

U.S. stock futures pointed to a lower opening on Tuesday as investors worried that the Obama administration's plans to shore up the financial sector and stimulate the economy may not be enough to ease the worst financial crisis since the 1930s. [ID:nN10256967]

The S&P/TSX composite index .GSPTSE closed slightly higher on Monday to log five straight sessions of gains, boosted by strength in energy issues, but held back by weakness in the materials group due to sliding gold prices.

Below is some of the news that may affect the market.


Gold edged up, supported by safe-haven buying and firmer oil prices but traders largely stuck to the sidelines ahead of a major economic stimulus plan to be announced in the United States. [ID:nLA736052]

Oil rose towards $41 a barrel, lifted by expectations that the approval of a U.S. stimulus package would boost demand for oil. [ID:nSYD426207]   Continued...