Mixed open for Toronto stocks as oil, banks offset

Thu Aug 21, 2008 9:10am EDT
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*Investors to eye oil and gold price

*Concern about U.S. mortgage crisis to hit financial stocks

*Maple Leaf Foods in focus after recall

TORONTO, Aug 21 (Reuters) - The Toronto Stock Exchange's main index is expected to open mixed on Thursday, supported by renewed interest in commodities, but any gains made by resource stocks may be trimmed by jitters over growing concerns over the U.S. mortgage crisis.

"When the commodities do well our oil and gas and gold stocks all do well," said Douglas Davis, president at Davis-Rea.

The main index will probably open higher, building on Wednesday's gains. But persistent concerns about mortgage giants Fannie Mae FNM.N and Freddie Mac FRE.N could sour the renewed interest in commodities, said Davis.

"Financials will continue to be under pressure until they devise some scheme to bailout the two big mortgage companies in the States," said Davis.

Wall Street research analysts projected another bumpy quarter for U.S. investment banks due to more write-downs. For details, see [ID:nBNG271027]

On Bay Street, Canadian banks may see erratic activity ahead of quarterly results reports. The country's six banks are expected to report lower quarterly earnings next week, reflecting weak capital markets activity, higher loan loss provisions and more write-downs.   Continued...