CANADA STOCKS-TSX could open down on banks, oil and swine flu

Tue Apr 28, 2009 7:56am EDT
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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 Q1 PROFIT FALLS 79 PCT   Continued...