November 21, 2008 / 2:00 PM / 9 years ago

CANADA STOCKS-Toronto index set to rise after big drop

3 Min Read

TORONTO, Nov 21 (Reuters) - The Toronto Stock Exchange's main index is poised to rise on Friday after a 9 percent tumble in the previous session on firmer oil and metals prices, and as stocks in Europe and Asia were higher.

The S&P/TSX composite index .GSPTSE sank to its lowest level in five years on Thursday as an earnings warning from Toronto-Dominion Bank (TD.TO) pounded the financials group and the price of crude slid below $50 a barrel. It was the biggest percent drop since October 1987.

Here is some news that could affect the market:

Canada Inflation Data

Canadian consumer prices registered their sharpest decline in nearly 50 years in October, dropping 1 percent from September as gasoline prices plummeted from recent high levels, Statistics Canada said on Friday. [ID:nN21500487]

TORONTO-DOMINION BANK (TD.TO)

RBC cuts Toronto-Dominion Bank to underperform from sector perform and reduces price target to C$49 from C$53. [ID:nWNAB6266] TD Bank said on Thursday that the "dramatic" lack of liquidity in global credit markets will prompt charges of C$350 million for credit-trading losses, reducing its fourth-quarter earnings. [ID:N20398511]

Oilexco oil.to

Oilexco Inc, a Canadian oil explorer that operates in the North Sea, says it has abandoned plans to raise as much as $150 million selling convertible debentures and to issue 20 million shares because its board considered the move too dilutive. [ID:nN20412885]

Sears Canada

Sears Canada SCC.TO is expected to report third-quarter results on Friday.

Oil Above $50

Oil rose above $50 a barrel, rebounding from a 3-1/2 year low, helped higher by rallies in European and Asian equities on talk China may cut interest rates later in the day. [ID:nSP355156]

Gold Climbs, Base Metals Mostly Higher

Gold gained as the dollar weakened against the euro and oil prices climbed higher, while platinum rallied in erratic trade [ID:nLL136677]. Base metals were mostly higher. [ID:nLL600943]

Research Roundup

UBS cuts Kinross Gold Corp's (K.TO) price target to $13 from $14, with a buy rating, and cuts Teck Cominco Ltd TCKb.TO price target to C$11.50 from C$14 with a buy rating. For more research, see: [ID:CA-RCH]

World Stock Rally

World stocks rebounded from a 5-1/2 year low on Friday and oil rose above $50 a barrel as expectations of further interest rate cuts helped to cushion deepening gloom about the broader economy. [MKTS/GLOB]

Deflation Concerns

Euro zone demand is falling and price pressures vanishing, business surveys showed on Friday, while central bankers weighed the bleak prospect of deflation. [ID:nPEK8463]

$1=$1.28 Canadian Reporting by Jennifer Kwan, Editing by Chizu Nomiyama

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