TORONTO, Oct 21 (Reuters) - The Toronto Stock Exchange’s main index may fall at the open on Tuesday as sliding commodity prices may put pressure on resource issues and profit-taking may ensue after two consecutive days of strong gains.
The index climbed more than 7 percent in a broad-based rally on Monday supported by underlying commodity prices.
Here is some of the news that could affect the market.
The Bank of Canada cut its key interest rate by a quarter-point, less than expected, to 2.25 percent and said it would likely have to ease further to combat the effects of the global financial crisis. [ID:nBAC000257]
Oil slipped to less than $73 a barrel, pressured by expectations that a global recession will crush demand, which could limit the impact of any supply cuts by OPEC. [ID:nSP339775]
Gold fell nearly 4 percent after the U.S. open [ID:nLL272021]
The financial crisis and falling oil prices are likely to overshadow higher earnings for Canada’s big oil companies, which are set to begin reporting their third-quarter results on Tuesday. Husky Energy (HSE.TO), Petro Canada PCA.TO, and EnCana (ECA.TO) are due this week. [ID:nN20457635]
Insurer Sun Life Financial (SLF.TO) swung to a third-quarter loss hurt by credit-related losses and a decline in equity markets. [ID:nN21283573]
Citigroup cut the price target on RIM RIM.TO and put a hold rating on the BlackBerry maker. [ID:nWNAB9146]
The cut comes a day after RIM’s shares dropped as much as 10 percent after broker report on sales trends. [ID:nN20520761]
FNX Mining Co Inc FNX.TO suspended contact nickel production in its Levack complex, citing low commodity prices and high operating costs, and cut its 2008 production outlook. [ID:nBNG353484]
The move is also consistent with a worldwide wave of mind closures due to low metal prices. [ID:nN20532872]
Brokerage Genuity Capital Markets cut the price target on Corus Entertainment and Astral Media and said the CRTC’s frenetic over-licencing of radio stations in many markets bear risk for incumbents.
Dundee Securites started coverage of Canadian energy companies, including buy ratings on Suncor Energy (SU.TO), Nexen NXY.TO, Encana, Canadian Natural Resources (CNQ.TO), and UTS Energy UTS.TO. It put a neutral rating on Talisman Energy TLM.TO. [RCH/CA] ($1=$1.20 Canadian) (Reporting by Ka Yan Ng; Editing by Tom Hals)