CANADA STOCKS-TSX could start lower on resource stocks selloff

Thu Oct 22, 2009 8:22am EDT
 
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 TORONTO, Oct 22 (Reuters) - Toronto's main stock index
could start lower on Thursday as softer prices for some key
Canadian exports may weigh on the resource-heavy index while
U.S. corporate earnings could also weigh on sentiment.
 U.S. stock futures are pointing to a slightly lower start
on Wall Street after EBay Inc (EBAY.O: Quote) forecast results for the
fourth quarter at the low end of Wall Street estimates on
Wednesday. The tone in U.S. stocks often influences direction
in Canada.
 Investors may also keep an eye on the Bank of Canada, which
at 10:30 a.m. (1430 GMT) is scheduled to release it Monetary
Policy Report, followed shortly by a news conference with
Governor Mark Carney.
 Earlier this week the central bank left its key interest
rate steady at a record low 0.25 percent and warned that a
strong Canadian dollar was undermining economic recovery.
 On Wednesday, the S&P/TSX composite index .GSPTSE fell
96.10 points, or 0.83 percent, to 11,442.02, which marked its
first significant drop in a week.
 Here is some news that could affect the market:
 POTASH CORP OF SASKATCHEWAN (POT.TO: Quote)
 Potash, the world's largest fertilizer producer, said on
Thursday that third-quarter profit fell 80 percent on lower
demand and weaker pricing. [ID:nN22505738]
 PRECISION DRILLING TRUST PD_u.TO
 Precision Drilling, Canada's largest oil and gas drilling
contractor, posted a 13 percent fall in quarterly profit,
partly on weaker demand for its services following a slump in
oil prices earlier this year. [ID:nBNG534644]
 OIL PRICES SLIP FROM YEAR HIGH
 Oil slipped towards $80 on Thursday as a stronger dollar
encouraged investors to lock in profit from a 12-month high hit
on Wednesday. [O/R]
 GOLD PRICES EASE
 Gold prices softened in Europe on Thursday as a decline in
the equity markets dented appetite for risk, benefiting the
dollar at the expense of higher-yielding currencies and lifting
it from 14-month lows against the euro. [GOL/]
 RESEARCH ROUNDUP:
 Following is a summary of research actions on Canadian
companies reported by Reuters. For more, please double click
[RCH/CA]
 * Blackmont raises Goldcorp (G.TO: Quote) price target 1.9 percent
to C$54 and ups Cameco Corp (CCO.TO: Quote) price target 28 percent to
C$41 with "sector perform" rating.
 * Macquarie starts coverage of Lundin Mining (LUN.TO: Quote) with
"outperform" rating and C$6 target price.
 ($1=$1.05 Canadian)
 (Reporting by Frank Pingue, Editing by Chizu Nomiyama)