TORONTO, April 28 (Reuters) - Toronto’s main stock index could open lower on Tuesday given the combination of pressing concerns about swine flu, a drop in oil prices and renewed fears about the stability of the U.S. financial sector.
New Zealand and Israel confirmed cases of swine flu on Tuesday to become the latest countries hit by a new strain that has killed up to 149 people in Mexico. [ID:nLS803449] Canada has also issued a travel alert to Mexico.
The heavily weighted financials index may be a key drag on the broader index after the Wall Street Journal reported that Bank of America Corp (BAC.N) and Citigroup Inc (C.N) may need more capital. [ID:nSP265157]
A drop in oil prices and a lower-than-expected profit from Petro-Canada PCA.TO, a key player in the TSX’s energy sector, could also weigh on the index, which is vying for its eighth straight week of gains.
The S&P/TSX composite index .GSPTSE had a four-session rally snapped on Monday as fears of an international swine flu outbreak knocked it down 154.68 points to 9,394.80.
Here is some of the news that may affect the index:
Petro-Canada PCA.TO, which is in the process of being acquired by Suncor Energy Inc (SU.TO), posted a smaller-than-expected quarterly operating profit on Tuesday as oil prices skidded with the meltdown of world economies. [ID:nN27537864]
Nexen Inc’s NXY.TO first-quarter profit fell 79 percent as the plunging price of crude oil weighed on results. [ID:nBNG88524]
Oil prices fell below $49 on Tuesday, extending Monday’s losses as declines on global stock markets heightened expectations of a further drop in demand for oil products. [ID:nSP458959]
Gold slipped below $900 an ounce in Europe on Tuesday on technical selling, with traders disappointed over the metal’s failure to sustain its rally to a near four-week high in the previous session. [ID:nLS545488]
Canadian officials advised citizens to avoid non-essential travel to Mexico because of the deadly swine flu outbreak there. [ID:nN27216188]
Following is a list of research on Canadian-listed companies. For more, please see [RCH/CA].
* Genuity cuts Goldcorp (G.TO) price target 6 percent to C$46 with a “buy” rating.
* Raymond James raises Eldorado Gold (ELD.TO) price target 9 percent to C$12.85, maintains “outperform” rating.
* Genuity cuts Yamana Gold (YRI.TO) price target 7 percent to C$13 with a “buy” rating.
* Genuity initiates coverage of WestJet Airlines (WJA.TO) with “buy” rating and C$16 price target.
$1=$1.22 Canadian Reporting by Frank Pingue, Editing by Chizu Nomiyama