TORONTO, June 22 (Reuters) - Toronto’s main stock index could open lower on Monday as weak commodities pressure the resource-heavy market and investors flee assets perceived to be risky amid doubt over the pace of economic recovery.
World stocks slipped Monday while government bonds and the U.S. dollar rose as a decline in oil prices, caution ahead of this week’s U.S. data and a U.S. Federal Reserve meeting weighed on risky assets. [MKTS/GLOB] U.S. stock index futures pointed to a lower open as investors reassessed the potential strength of economic recovery ahead of key data this week. [ID:nN22493754]
On Friday, the S&P/TSX composite index .GSPTSE closed up 166.45 points, or 1.64 percent, at 10.287.95, but ended the week in negative territory, ending a stretch of weekly gains.
Here is news that could affect the market:
Telecom equipment maker Nortel Networks NT.TO said late last week it will sell its advanced wireless technology business to Nokia Siemens Networks [NSN.UL] for US$650 million and was making progress in talks to sell other businesses. [ID:nN19469126]
Oil dropped below $69 a barrel on Monday, pressured by a stronger dollar and weaker European equities, but attacks on the oil industry in top African exporter Nigeria limited losses. [ID:nSYD456749]
Gold fell on Monday towards $920 per ounce with dollar strength against a basket of major currencies sapping the appeal of bullion and other commodities priced in the U.S. unit. [ID:nLM610204] Base metals were also weaker. [ID:nLM718355]
CAE INC (CAE.TO)
CAE Inc said Sunday it will spend up to C$274 million over the next seven years on a new research and development program that could take it beyond its core flight simulator business. [ID:nN21459765]
Workers at Canada’s Globe and Mail newspaper voted 97 percent in favor of authorizing their union to call a strike if they fail to negotiate a new contract, a senior union official said Sunday. [ID:nN21483210]
MANULIFE FINANCIAL CORP (MFC.TO)
Canadian insurer Manulife Financial said Friday it received an enforcement notice from the Ontario Securities Commission that found the company failed to meet certain disclosure obligations in its segregated funds and variable annuity guaranteed products. [ID:nN19461071]
A lot of oil analysts say crude prices around $70 a barrel are too steep, given the tenuous state of the economy, and energy investors don’t seem to want to argue yet. [ID:nN19464479]
Genuity raises price target of Addax Petroleum Corp AXC.TO to C$40 from C$33; rating hold.
Raymond James adjusts ratings for several energy companies, including raising EnCana Corp (ECA.TO) price target to C$58.50 from C$57.50. [ID:nBNG492069] ($1=$1.15 Canadian) (Reporting by Jennifer Kwan; editing by Jeffrey Benkoe)