CANADA STOCKS-TSX could open down on weak U.S. profits

Tue Apr 21, 2009 8:20am EDT
 
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TORONTO, April 21 (Reuters) - Toronto's main stock index could open lower on Tuesday as concern about U.S. corporate earnings weighs on sentiment, but firm commodity prices could help cushion the drop in the resource-heavy index.

The tone could also be influenced by the Bank of Canada's interest rate announcement at 9:00 a.m. (1300 GMT), which will be accompanied by a statement that may mention quantitative or credit easing. [ID:nN16520541] and [ID:nTOR004441]

Concerns about corporate profits in the United States, and the potential for domestic firms to follow with similar gloomy news, were renewed after Bank of New York Mellon Corp (BK.N: Quote) and chemical maker Dupont (DD.N: Quote) reported lower quarterly profits. [ID:nN21414260] and [ID:nN21442737]

The S&P/TSX composite index .GSPTSE is coming off a skid of 3 percent in Monday's session as investors fled the market given a sharp drop in the price of oil and concerns over the vitality of U.S. banks.

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

OIL CRAWLS FIRMER AFTER FALL, UNDER $46

Oil edged firmer, steadying below $46 barrel on Tuesday, pausing after an almost 9 percent fall a day earlier as traders awaited more clues on demand from U.S. economic, corporate and oil inventory data. [ID:nSP465475]

GOLD FIRMS ON HAVEN APPEAL, EQUITIES EYED

Gold rose on Tuesday as fears over the health of the U.S. banking sector boosted its safe-haven appeal, with traders eyeing the stock markets for direction. [ID:nLL15416]   Continued...