August 12, 2009 / 12:49 PM / 8 years ago

CANADA STOCKS-TSX may edge up, but caution ahead

4 Min Read

 TORONTO, Aug 12 (Reuters) - Toronto's main stock index might edge higher after two-straight sessions of declines, but action is likely to be tentative ahead of the U.S. Federal Reserve's policy announcement.
 The Fed is expected to keep U.S. interest rates steady at near zero at a meeting that concludes later on Wednesday but end its long-term government securities buying program amid signs the economy is emerging from a deep recession. [ID:nN11541630]
 The statement is expected at 2:15 p.m. EDT (1815 GMT).
 The TSX sank on Tuesday as mixed economic data and a gloomy outlook for U.S. banks painted by a prominent analyst spurred doubt about recovery and led to profit-taking. The S&P/TSX composite index .GSPTSE closed 1.52 percent lower at 10,629.47.
 Here is some of the news that may affect the market.
 COMMODITIES
 Gold prices held near $945 an ounce in Europe as caution ahead of the Federal Reserve announcement on monetary policy later in the session kept investors on the sidelines. Weakness in physical demand is also preventing prices from rising. [ID:nLC494454]
 Oil reversed early losses on Wednesday to edge back toward $70 a barrel after initially falling to the lowest price in August so far on concerns about the strength of demand ahead of weekly U.S. inventory data. [ID:nSP527509]
 PENN WEST
 Penn West Energy Trust PWT_u.TO reported a narrower second-quarter loss, helped by lower expenses and foreign exchange gains. [ID:nBNG496422]
 EARNINGS BRIEFS
 * Cameco (CCO.TO) Q2 results [ID:nWNBB4305]
 * ATS Automation Q1 profit sinks [ID:nBNG535484]
 * Intact Financial profit falls [ID:nBNG485620]
 BROOKFIELD
 Brookfield Asset Management (BAMa.TO) and Brookfield Properties BPO.TO said after markets on Tuesday they will launch a $4 billion investor consortium aimed at turning around undervalued and underperforming real estate during the "current distressed economic environment." [ID:nN11540379]
 SCOTIABANK
 Bank of Nova Scotia (BNS.TO) hopes to raise its stake in Xi'an City Commercial Bank by the end of the year to close to 20 percent from 1.3 percent now, an executive at the Canadian lender said. [ID:nPEK109049]
 FINANCE MINISTER IN CHINA
 Global policymakers must secure a rock-solid economic recovery before they turn their attention to exit strategies from stimulus policies or to discussion of exchange rates, Canadian Finance Minister Jim Flaherty. [ID:nPEK61145]
 RESEARCH ROUNDUP - FIRST QUANTUM
 UBS and Macquarie both sharply boosted on Wednesday their price targets on First Quantum Minerals (FM.TO) , while Haywood raised the Toronto-listed mining firm to sector perform from sector underperform. On Tuesday, Desjardins had raised its price target and kept a buy rating on the company.
 Other research actions: For additional research, please double click [RCH/CA]
 * UBS raises Rona RON.TO price target
 * RBC cuts Cardiome Pharma (COM.TO) price target
 ($1=$1.10 Canadian)   (Reporting by Ka Yan Ng; Editing by Padraic Cassidy)                                      

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