TORONTO, Jan 26 (Reuters) - Toronto’s main stock index could open lower on Tuesday, with a drop in oil and metal prices weighing on producers, as China’s clampdown on lending hit investor confidence.
Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE could follow U.S. futures and world markets down. Investors were also worried after Standard & Poor’s cut its rating outlook on Japan. [.N] [MKTS/GLOB]
Canadian stocks ended little changed on Monday as beaten-down financial and energy shares found investor interest, but falling gold prices limited gains.
Here is some of the news that may affect the market:
Fears of more Chinese policy tightening spooked global markets after Beijing ordered banks to comply immediately with a planned increase in reserves and a report suggested earlier attempts at curbing lending had failed. For details, see [ID:nLDE60P13L]
Oil fell toward $74 a barrel after the Chinese move, which analysts said was a setback for the bullish view in oil markets that puts the prospect of rising Asian demand ahead of the market’s weak current fundamentals. [O/R]
Gold prices slipped in Europe with the dollar’s rise versus the euro, with higher-yielding and commodity-related currencies sensitive to any hints that China may be putting the brakes on its economy. [GOL/]
Copper dropped about 1.5 percent, with dealers citing dollar strength and concerns that China’s clampdown could curb metals demand from the world’s top consumer. [MET/L]
S&P THREATENS JAPAN
Standard and Poor’s threatened to cut Japan’s credit rating unless it produced a credible plan to rein in its soaring debt and lift growth in an economy plagued by persistent deflation. [ID:nSGE60P08I]
Canada’s biggest book retailer Indigo Books & Music Inc (IDG.TO) posted a 29 percent rise in quarterly profit, helped by higher sales. [ID:nSGE60O0MZ]
U.S. commercial printing company Quad/Graphics Inc agreed to buy rival World Color Press Inc WC.TO. [ID:nSGE60P0AD]
Apple Inc (AAPL.O) posted better-than-expected Mac sales, but shipments of iPhone came in just below Wall Street’s heightened expectations. The iPhone competes with Research in Motion Ltd’s RIM.TO BlackBerry.
CANADA‘S RESEARCH ROUNDUP
Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. [RCH/CA]
* UBS raises Rona Inc RON.TO price target to C$18 from C$17; keeps “neutral” rating
* MacQuarie raises Semafo Inc (SMF.TO) target price to C$7 from C$4.75; keeps “outperform” rating
* RBC raises Indigo price target to C$19 from C$17; rated “outperform”
* RBC raises Kingsway Financial Services Inc KFS.TO price target to $1.50 from $1; rated “underperform” ($1=$1.06 Canadian) (Reporting by Claire Sibonney; editing by Jeffrey Benkoe)