June 24, 2009 / 12:56 PM / 8 years ago

CANADA STOCKS-TSX may open higher ahead of Fed; oil to weigh

TORONTO, June 24 (Reuters) - Toronto’s main stock market index could open higher on Wednesday, following along with global equities on expectations the U.S. Federal Reserve will not raise interest rates any time soon.

But weakness in the price of oil CLc1 could weigh on the resource-heavy market.

The dollar hit its lowest in nearly two weeks and global stocks edged up ahead of the conclusion of the U.S. Federal Reserve’s rate-setting meeting. [MKTS/GLOB]. U.S. stock index futures pointed to a higher open. [ID:nN24465540]

On Tuesday, the S&P/TSX composite index .GSPTSE rose 62.54 points, or 0.64 percent, to 9,896.72, helped higher by a rise in commodity prices.

Here is some news that could affect the market:

ADDAX PETROLEUM CORP AXC.TO

China’s Sinopec Group agreed to buy Addax Petroleum Corp for about C$8.27 billion in a move to secure the Swiss oil and gas explorer’s high potential oil blocks in West Africa and Iraq’s Taq Taq field. [ID:nBNG477261]

AGF MANAGEMENT LTD (AGFb.TO)

Mutual fund and wealth management company AGF Management Ltd (AGFb.TO) reported a drop in quarterly profit on Wednesday as the downturn in global markets sent investment revenues lower. [ID:nN2368731]

SHERRITT INTERNATIONAL CORP (S.TO)

Sherritt International Corp and Ambatovy partners finalize arrangements for remaining funding for the Ambatovy Project, and said the project’s $2.1 billion senior project financing is unaffected by these arrangements. [ID:nWNBB0610]

SAPUTO INC (SAP.TO)

Saputo Inc has agreed to acquire activities of F&A Dairy of California and said the acquisition will be paid in cash by drawing on available lines of credit. [ID:nWNBB0507]

OIL SAGS

Oil dropped to under $69 a barrel on Wednesday, falling back after U.S. industry data showed gasoline reservoirs swelled unexpectedly. [ID:nSIN481258]

GOLD, BASE METALS

Gold rose above $930 per ounce on Wednesday, gathering strength as the dollar prolonged its downward slide against major currencies on expectations that the U.S. Federal Reserve will not rush to raise interest rates. [ID:nLO94369] Base metals were mostly higher. [ID:nLO605855]

CANADA RESEARCH

Genuity cuts Manulife Financial (MFC.TO) price target to C$25 from C$27; rating buy. [ID:nBNG480663]

BMO cuts OPTI Canada OPC.TO price target to C$3.25 from C$3.75; rating market perform. For more research, please see: [CA-RCH]

$1=$1.15 Canadian Reporting by Nina Lex and Jennifer Kwan; Editing by Jeffrey Hodgson

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