Toronto stocks seen weaker ahead of rate decision

Tue Jun 10, 2008 8:36am EDT
 
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*TSX seen weaker ahead of rate decision

*Bank of Canada widely expected to cut rates

*Bernanke's inflation comments could weigh

*Commodities mixed; oil price up again

TORONTO, June 10 (Reuters) - The Toronto Stock Exchange's main index was seen slightly weaker on Tuesday, after a late-day drop in the previous session, as investors looked to an expected interest rate cut by the Bank of Canada.

Commodities were mixed, offering the resource-heavy Canadian benchmark little direction.

Global stock markets fell after U.S. Federal Reserve Chairman Ben Bernanke warned the central bank would defend against long-term inflation expectations -- remarks taken to mean U.S. interest rates may rise later this year.

But in Canada on Tuesday, the central bank was widely expected to cut its key overnight rate by 25 basis points.

Any benefit to the Toronto bourse has already been priced in, analysts say, suggesting there will be little reaction unless the Bank of Canada surprises.   Continued...