May 25 (Reuters) - Toronto’s main stock index is expected to open lower on Tuesday as commodity prices were hammered by worries over Europe’s banking sector and North Korea’s threatened military action against the South.
Nervousness in the market was exacerbated by heightened geopolitical tensions in Asia after North Korean leader Kim Jong-il ordered his military to be on a combat footing.
Money markets have seen an increasing reluctance to lend, particularly for longer term, raising fears that dollar-funding strains could further hobble troubled banks. [MMT/]
U.S. stock index futures were steeply down ahead of data on home prices and consumer confidence. [.N]
European markets fell sharply to their lowest in nearly nine months, led by banking and commodity shares, while German bonds hit a record high on worries about the fate of euro zone banks and the impact of austerity measures on economic growth.
Asia stocks fell to multi-month lows, with the Nikkei shedding more than 3 percent.
Here is some news that could affect stock prices:
Oil fell below $68 a barrel on Tuesday as investors fled from riskier assets to dollar safety on growing concerns that the European debt crisis could worsen and damage the still fragile global economic recovery. [O/R]
Industrial metals slid on Tuesday, with copper falling more nearly 3 percent on the back of a stronger dollar and worries the euro zone debt crisis could derail the region’s already-fragile economic recovery. [MET/L]
Platinum and palladium fell in Europe on Tuesday, resuming last week’s downward slide, as investors were spooked by a further drop in the euro and equity markets, and as industrial end-users held out for lower prices. [GOL/]
First Quantum Minerals (FM.TO) has suffered a new legal setback to its Congo business with a court ruling to annul its rights to two copper mines in the south of the country. Alexis Mikandji, chief of staff in the Ministry of Mines, said on Saturday that according to the notification, First Quantum should have obtained a decree and not a letter for its two mines. [ID:nLDE64L0CZ]
Ivanhoe Mines (IVN.TO) signed a preliminary agreement with two international financial institutions to secure up to $1.8 billion in financing for the Oyu Tolgoi copper-gold mine in southern Mongolia, the company said on Friday. [ID:nN21167161]
Fuel-cell maker Hydrogenics Corp HYG.TO said on Friday it will offer about 4.8 percent of its equity to two investors to settle a lawsuit accusing the company of negligent misrepresentation and fraud. [ID:nSGE64K0KH]
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.
* Agrium Inc (AGU.TO) price target raised to $83 from $80; rating buy at UBS
* Eastern Platinum Ltd (ELR.TO) price target cut to $1.60 from $1.80; rating outperform at Raymond James
* First Uranium Corp FIU.TO price target cut to $2 from $2.40; keeps outperform rating at Raymond James
* MAG Silver Corp (MAG.TO) price target raised to $9.60 from $9.50; rating outperform at Raymond James
* Platinum Group Metals Ltd PTM.TO rating raised to outperform from market perform at Raymond James
* Potash Corp (POT.TO) price target cut to $113 from $116; keeps neutral rating at UBS
$1=1.07 Canadian Reporting by Bangalore newsroom, editing by Jeffrey Hodgson