CANADA STOCKS-TSX may open lower on Obama plan aftershock

Fri Jan 22, 2010 8:26am EST
 
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TORONTO Jan 22 (Reuters) - Toronto's main stock index could open lower on Friday given investor concern about the impact of a White House plan to clamp down on financial risk taking, which could dent flows into the asset class.

Stock markets from Australia to Germany fell with many financial shares, as well as the dollar, pressured by the U.S. proposal [.N], and the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE could follow world indices down.

Canadian stocks fell hard for a second session and hit their lowest point in five weeks on Thursday, rattled by falling commodity prices after U.S. President Barack Obama laid out the sweeping restrictions on banks.

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

OBAMA THREATENS FIGHTS

Obama threatened to fight Wall Street banks on Thursday with new proposals to limit financial risk taking, sending stocks and the dollar tumbling. [ID:nLDE60L0F0]

GREENBACK DROPS

The U.S. dollar fell broadly after Obama proposed new rules for banks that some investors said would squeeze profits but the yen later pared gains against the greenback as risk aversion abated. [FXNEWS]

OIL STEADIES   Continued...