October 16, 2008 / 1:07 PM / 9 years ago

CANADA STOCKS - Factors to watch on Oct 16

2 Min Read

TORONTO, Oct 16 (Reuters) - Canada's S&P/TSX composite index .GSPTSE is seen sliding for a second consecutive session as weakness in commodity prices on concerns of global economic weakness may put pressure on the heavily weighted energy and materials sectors.

But the losses may be stemmed by positive sentiment seen in U.S. stock futures as U.S. government data showed that fewer people filed new claims for jobless benefits in the latest week and core consumer prices moderated in September, raising hopes of another interest rate cut. [ID:nN16379097]

The S&P/TSX composite index .GSPTSE closed down more than 6 percent on Wednesday.

Here is some of the news that could affect the market.

Commodities Slide Continues

Gold tumbled more than 2 percent and oil slid to a 13-month low as prices of industrial materials and other commodities were undermined by growing fears of global recession. [ID:nLG702516]

Canadian Asset Management Sector

Blackmont Capital initiated coverage on the Canadian asset management sector, including AGF Management Ltd and IGM Financial. The brokerage said asset managers have underperformed banks since October 2007, which underscores the relative buying opportunity that has emerged. [ID:nWNAB7645]

Poll-Canada Economy Set to Narrowly Miss Recession

The Canadian economy should steer clear of a recession as domestic demand will continue to outweigh the drag from trade, but economic growth will be hard to come by, a quarterly Reuters poll showed. [ID:nN14394770]

Canada Manufacturing Data

Canadian manufacturing sales dropped much more than expected in August from July, falling 3.7 percent largely due to falling energy prices and unplanned production slowdowns at two major petroleum plants, StatsCan said [ID:nOTT001417]

u.s. Data Wrap

U.S. consumer prices were unexpectedly flat on September as energy costs fell in new evidence that inflation pressures are easing, [ID:nN15330179] while U.S. jobless claims fell 16,000 last week. [ID:nN15335763] ($1=$1.19 Canadian)

Reporting by Ka Yan Ng, Editing by Chizu Nomiyama

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