CANADA STOCKS-TSX could ride bank shares to higher open

Fri Jan 16, 2009 8:27am EST
 
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TORONTO Jan 16 (Reuters) - Toronto's main stock index may open higher on Friday with financial shares likely bolstered by the news overnight that Bank of America BAC.N received a bailout from the United States.

The news, which eclipsed signs of continuing fallout from the credit crisis for the financial sector, boosted U.S. stock futures, which bodes well for Toronto's key index as it often takes its direction from its U.S. counterpart.

The Toronto index's gains could be kept in check by the heavily weighted energy sector, which may slide at the start as oil prices fell further and were now more than $110 below a record peak set in July.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed higher on Thursday after it reversed early losses, tracking a rebound in U.S. stocks on optimism about government stimulus.

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

BANK OF AMERICA AID PACKAGE UNVEILED

Bank of America will receive another $20 billion in U.S. government cash and the U.S. Senate cleared the release of the remaining $350 billion of bailout funds amid new fears over credit losses at big banks. [ID:nSP387846]

OIL FALLS TOWARDS $35 AFTER IEA DEMAND REPORT

Oil fell to around $35 a barrel on Friday after the International Energy Agency cut sharply its forecast for world oil demand this year. [ID:nLG581112]   Continued...