July 22, 2009 / 12:59 PM / in 8 years

CANADA STOCKS-TSX may open lower as commodities slide

TORONTO, July 22 (Reuters) - Toronto’s main stock market index could open lower on Wednesday, as weaker oil and metal prices weigh on the resource-heavy index and disappointing U.S. bank results drag on financial shares.

World stocks backed away from nine-month highs as worse-than-expected euro zone industrial figures and a warning about rising unemployment from U.S. Federal Reserve Chairman Ben Bernanke broke a seven-day winning streak. [ID:LM155101]

U.S. stock index futures added to losses on Wednesday after disappointing quarterly results from Morgan Stanley (MS.N) and Wells Fargo & Co (WFC.N). [ID:N22298487]

On Tuesday S&P/TSX composite index .GSPTSE closed down 25.39 points, or 0.24 percent, at 10,515.32 after six straight days of gains.

Here is some news that could affect the market:

SUNCOR (SU.TO)

Suncor Energy Inc cleared the last hurdle for its C$22.5 billion ($20.5 billion) takeover of Petro-Canada on Tuesday when it secured approval from Canada’s Competition Bureau by agreeing to sell dozens of Ontario retail sites. [ID:N21264730]

Suncor swung to a second-quarter loss, hit by low oil and gas prices. [ID:LM164814]

MAGNA MGa.TO

The German states that are home to General Motors unit Opel’s factories still prefer Magna’s offer for the German company over the one made by RHJ International, several people familiar with the matter said on Wednesday. [ID:WEA1803]

PRECISION DRILLING TRUST PD_u.TO

Second-quarter profit at Precision Drilling Trust, Canada’s largest oil and gas drilling contractor, jumped 164 percent helped by the late 2008 purchase of a U.S. drilling contractor. [ID:nN22294490]

OIL

Oil fell below $65 a barrel on Wednesday after data showing an unexpected rise in U.S. crude stocks suggested demand in the world’s top energy consumer was still weak. [ID:SIN526331

GOLD, BASE METALS

Gold prices edged lower in Europe on Wednesday as an uptick in the dollar pressured commodity markets, and after the world’s largest bullion-backed exchange-traded fund recorded a further outflow. [ID:LM182336] Base metals were also lower. [ID:LM139228]

AIR CANADA ACa.TO

The Canadian government does not foresee any obstacles to approving a pension moratorium at Air Canada, a Finance Ministry spokesman said on Tuesday, although he declined to say when it might do so. [ID:N21263156]

NORTEL NRTLQ.PK

MatlinPatterson, a U.S. private equity firm that’s a creditor of Nortel Networks, said on Tuesday it submitted a $725 million bid for the bankrupt Canadian company’s wireless technology assets. [ID:N21257163]

NEWPORT PARTNERS INCOME FUND NPF_u.TO

Canada’s Newport Partners Income Fund said its lenders agreed not to enforce their default-related rights under a senior credit agreement for up to an year, after the company defaulted on certain obligations under the agreement. [ID:BNG388512]

WEST FRASER TIMBER CO LTD (WFT.TO)

Tough lumber and pulp markets pushed West Fraser Timber Co Ltd, North America’s largest softwood lumber producer, into quarterly net loss on Tuesday despite an exchange gain on debt and a tax recovery. [ID:N21388745]

CANADA RESEARCH

* Raymond James raises Neo Material Technologies NEM.TO price target to C$3.25 from C$2.25; rating outperform.

* Genuity raises Sprott Inc (SII.TO) to hold from sell.

* Genuity raises TMX Group (X.TO) price target to C$40 from C$38; rating buy. [ID:BNG510141]

For more research, please see: [CA-RCH]

$1=$1.11 Canadian Reporting by Nina Lex; Editing by Jeffrey Hodgson

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