January 12, 2010 / 1:53 PM / 8 years ago

CANADA STOCKS-TSX may open lower on commodities, U.S. earnings

TORONTO, Jan 12 (Reuters) - Toronto’s main stock index looked set for a drop at the open on Tuesday as the resource-weighted market braced for falling commodity prices after China tightened monetary policy.

China’s move boosted the U.S. dollar and dented gold’s appeal. Oil also fell from a 15-month peak on milder U.S. winter weather.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE could also follow U.S. futures lower as investors digested disappointing results from the start of earnings season. [.N]

Canadian stocks finished little changed on Monday after climbing above 12,000 for the first time since September 2008, with weakness in heavyweight financial and energy issues offsetting strength in the index’s materials group.

Here is some of the news that may affect the market:

CHINA SURPRISES

China on Tuesday raised the proportion of deposits that banks must hold in reserve, in the clearest sign yet that it has started to tighten monetary policy with its economy roaring back to the brink of overheating. [ID:nTOE60B095]

GOLD SLUMPS

Gold prices turned negative and platinum pared gains to slip below $1,600 an ounce in Europe on Tuesday after China raised its banks’ reserve requirements, pressuring the euro lower versus the dollar. [GOL/]

OIL DIPS

Oil fell under $82 a barrel on Tuesday from a 15-month high as forecasts for milder weather in the U.S. Northeast signaled lower demand in the world’s largest heating oil market. [O/R]

BROOKFIELD PROPERTIES ISSUES SHARES

Brookfield Properties Corp BPO.TO increases its preferred share issue. The company says it will increase the size of the offering to C$275 million from C$150 million. [ID:nWEN8260]

BIDDERS SAID TO EMERGE FOR CANWEST

Corus Entertainment Inc (CJRb.TO), Shaw Communications Inc (SJRb.TO), Fairfax Financial Holdings Ltd (FFH.TO) and Jim Pattison Group are considering investing in debt-laden media company Canwest Global Communications Corp CGS.V, according to a newspaper report. [ID:nSGE60B07V]

CENTERRA REPORTS 2009 PRODUCTION

Centerra Gold Inc (CG.TO) reported 2009 gold production of 675,592 ounces. The company also said exploration expenditures of $30 million are planned for 2010 and capital expenditures for 2010 are estimated to be $276.4 million. [ID:nWNAB3018]

PAKISTAN WANTS TO CANCEL BARRICK GOLD DEAL

A Pakistani provincial government wants to cancel a $3-billion foreign joint venture copper and gold mining project between Barrick Gold (ABX.TO) and Chile’s Antofagasta Plc (ANTO.L), a provincial mining official said on Tuesday [ID:nSGE60B07R].

ZAMBIA COPPER OUTPUT TO RISE

Zambia’s central bank said copper production could rise in 2010 and noted production at Lumwana Mining Co. Ltd., a unit of Equinox Minerals EQN.TOEQN.AX, was ramped up last year. [ID:nLDE60B0WS]

SINO FOREST ACQUIRES HOMIX

Sino Forest Corp TRE.TO acquires Homix Limited, a research and development and recomposed wood manufacturer in China for a deal worth an aggregate amount of $7.1 million. [ID:nWNAB3193]

CANADA‘S RESEARCH ROUNDUP

Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]

* RBC cuts Goldcorp Inc (GG.N)(G.TO) price target to $48 from $50; rating outpeform

* Desjardins raises First Quantum Minerals (FM.TO) price target from C$120 from C$103

* UBS raises Silver Wheaton Corp SLW.NSLW_u.TO price target to $21 from $18; rating buy

* UBS raises Magna International Inc MGa.TO price target to $73 from $60; rating buy

$1=$1.04 Canadian Reporting by Claire Sibonney; Editing by Jeffrey Hodgson

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