CANADA STOCKS-TSX eyes flat to firm open; commodities mixed

Wed Sep 23, 2009 8:30am EDT
 
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  TORONTO, Sept 23 (Reuters) - Toronto's main stock index
could get off to a flat to higher start on Wednesday, but
potential gains could be capped by mixed commodities and by
investor caution.  
 World stocks drifted higher on Wednesday and hovered near a
recent 11-month high, though investors traded cautiously ahead
of a Federal Reserve policy decision later in the day. U.S.
stock index futures pointed to a flat to higher open.
[MKTS/GLOB] [.N]
 On Tuesday, the S&P/TSX composite index .GSPTSE ended up
161.12 points, or 1.41 percent, at 11,585.73, just shy of
topping the 11-month high it reached last week.
 Here is some news that could affect the market:
 BANK OF CANADA
 The Bank of Canada repeated its conditional pledge on
Wednesday to hold interest rates at their current low level
until mid-2010 and said the strong Canadian dollar remains a
risk to growth. [ID:nN23387254]
 Separately, Bank of Canada Governor Mark Carney said on
Tuesday Canada's economy has started the slow climb to recovery
but only because of the emergency measures taken by the
government and central bank, with business activity still
lagging. [ID:nN22355648]
 U.S. FED ANNOUNCEMENT
 U.S. Federal Reserve's Federal Open Market Committee makes
a rate announcement about 2:15 p.m. (1815 GMT). The Fed is
widely expected to hold interest rates where they are, near
zero percent. [ID:nN22369584]
 FORD IN CANADA
 Ford Motor Co's F.N Canadian subsidiary faces a C$1.8
billion shortfall in its pension plan, the Globe and Mail said,
citing a company letter to employees and retirees.
[ID:nBNG371588]
 OIL SAGS
 Oil fell towards $71 a barrel on Wednesday, pressured by
doubts over U.S. demand after industry data showed a surprise
build in crude oil stockpiles. [O/R]
 GOLD STEADY
 Gold held steady on Wednesday, near last week's 18-month
high and supported by dollar weakness, but gains were capped by
discomfort over the extent of long positioning in futures
markets and risk of liquidation. [GOL/]
 BASE METALS DIP
 Copper prices dipped on Wednesday, as investors fretted
about signs of faltering demand from major consumer China.
[ID:nLN502482]
 OYU TOLGOI MINE
 Partners Rio Tinto RIO.AX RIO.L and Ivanhoe Mines
IVN.TO expect Mongolia to approve their huge Oyu Tolgoi
copper and gold mine soon, and the two miners are considering
potential investments by sovereign wealth funds.
[ID:nLN496294]
 BOMBARDIER INC BBDb.TO
 Bombardier Inc will make a decision within the next few
weeks on how deeply it will cut production in its commercial
aircraft division, the company's chief financial officer said
on Tuesday. [ID:nN22158670]
 CANADA RESEARCH
 Raymond James raises GLV GLVa.TO to strong buy from
outperform; price target to C$12 from C$10.
 Raymond James raises Canadian Pacific Railway CP.TO price
target to C$55 from C$45; keeps market perform rating.
 For more research, please see: [CA-RCH]
 ($1=$1.07 Canadian)
 (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)