November 25, 2008 / 1:47 PM / 9 years ago

CANADA STOCKS-Toronto stocks set to follow oil lower

4 Min Read

TORONTO, Nov 25 (Reuters) - The Toronto Stock Exchange's main index .GSPSTE is set to fall on Tuesday as oil prices unwound a near-10 percent rally.

Further pressure may come as domestic bank earnings season begins with Bank of Montreal (BMO.TO), while several miners announced plans to scuttle deals or suspend operations.

The main index climbed 3.5 percent on Monday, its second consecutive session of gains, with resource issues supported by rising oil prices and the U.S. government's rescue plan for banking giant Citigroup (C.N) lifting market sentiment.

Here is some of the news that may affect the market.

Bank of Montreal Profit Rises

Bank of Montreal quarterly profit rose 24 percent and despite an after-tax charge related to capital markets. The bank also transferred C$2 billion of securities from its trading portfolio to its available-for-sale portfolio. [ID:nWNAB7194]

See also: TD Bank, RBC announce equity financings that will increase their regulatory capital ratios [ID:nN24527304]

Oil Retreats, Gold Dips

Oil fell to below $53 a barrel, unravelling a near 10-percent rally the previous session as optimism over the latest government bank bail-out dispersed. [ID:nSP128607]

Gold fell 2 percent in Europe as a firmer U.S. dollar and softer oil prices prompted profit-taking after the previous session's near six-week highs. [ID:nLP645887]

Bhp Dumps Rio Mining Mega-Bid as Downturn Bites

Global miner BHP Billiton (BHP.AX) abandoned its hostile $66 billion takeover bid for rival Rio Tinto (RIO.L), blaming sliding metals prices and the threat of global recession for scuppering the mega-merger. [ID:nLP735505]

Denison Mines Postpones Project, Suspends Another

Denison Mines (DML.TO) said the current economic climate and increasing costs have led to the postponement of the Midwest joint venture, but would have no impact on its recently announced production outlook. It also announced the temporary closure of the Tony M mine in Utah. [ID:nWNAB7232]

See also: Vaaldiam resources suspends mining operations at Duas Barras mine [ID:nWNAB7252]

Canada's Economy Entering Deep Recession-Oecd

The Bank of Canada has more room to slash interest rates, the OECD said, forecasting Canada's economy will shrink for three straight quarters as the global crisis bites into domestic spending. [ID:nN24534127]

See also:

* Canada retail sales jump 1.1 percent in September on new car sales [ID:nOTT001457]

* Canada finmin says may take stimulus steps before March [ID:nN24542430]

Research Roundup: Hudbay, Transat, Td, Novagold

Following is a summary of research actions on Canadian companies reported by Reuters. For more, please double click [RCH/CA]

* UBS cuts price targets on Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO)

* RBC cuts NovaGold (NG.TO) target to C$0.50 from C$3

* Canaccord Adams cuts HudBay (HBM.TO)to hold from buy

* Versant raises Transat AT TRZb.TO to neutral from sell

$1=$1.24 Canadian Reporting by Ka Yan Ng; Editing by Kenneth Barry

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