CANADA STOCKS-TSX may open lower as China fears hit commods

Tue Jan 26, 2010 8:21am EST
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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 SLIPS   Continued...