TORONTO, Aug 17 (Reuters) - Toronto’s main stock market index could open lower on Monday on weak resources and more worries over the pace of the global economic recovery.
North American markets are expected to follow their Asian counterparts lower after Japan’s economy grew 0.9 percent in the second quarter, but analysts say recovery in the world’s No.2 economy could lose steam when a temporary boost from government stimulus dwindles. [nLH338906]
The resource-heavy Toronto Stock Exchange S&P/TSX composite index .GSPTSE will also take its cue from falling gold and energy prices which both fell to two-week lows on concerns over the pace of the economic recovery.
The TSX ended gained 0.2 percent to 10,848.01 on Friday as an end-of-session rally in financial shares outweighed weakness in commodity stocks, which were under pressure after a U.S. consumer confidence report raised doubts about economic recovery. [nN14314048]
Here is some of the news that may affect the market.
U.S. crude oil fell to a two-week low below $66 a barrel on Monday as investors became more cautious about the pace of global economic recovery and any revival in energy demand. [nLH442582]
GOLD LOSES SHINE
Gold slipped to its lowest level since late July in Europe on Monday as the dollar firmed against a basket of currencies and as a 2 percent decline in crude prices dented the precious metal’s appeal as an inflation hedge. [nLH406358]
ALLEN VANGUARD CORP
Allen Vanguard VRS.TO posted a bigger third-quarter loss dented by impairment charges and said it is in talks with lenders to amend certain covenants in conjunction with an investment from an American investor. [nBNG24579]
Biovail Corp BVF.TO, Canada’s biggest publicly traded drugmaker, said on Monday that revenue for one of its key drugs could be dented after a U.S. judge ruled in favor of a rival firm in a patent-infringement case paving the way for a generic form of Ultram to be released. [NBW175339A]
Small Canadian drugmaker AEterna Zentaris AEZ.TO said on Monday that results from two phase 3 studies with its benign prostatic hyperplasia treatment Cetrorelix failed to meet one of its key objectives. [nPnMO847a]
CANADIAN HOG PRODUCTION
Canada will pay some farmers to stop raising hogs and offer loans to help others restructure, assistance that drew praise from Canadian hog farmers and concerns from a top U.S. farmer group. [nN16331941]
* VERSANT RAISES GROUPE AEROPLAN AER.TO PRICE TARGET TO C$8 FROM C$6; RATING SELL
* BLACKMONT RAISES BOARDWALK REAL ESTATE INVESTMENT TRUST BEI_u.TO PRICE TARGET TO C$34 FROM C$30.50; RATING SECTOR PERFORM
* GENUITY RAISES AGF MANAGEMENT (AGFb.TO) TO BUY FROM HOLD
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($1=$1.11 Canadian) (Reporting by Scott Anderson; Editing by Theodore d‘Afflisio)