October 29, 2008 / 1:03 PM / 9 years ago

CANADA STOCKS-Toronto index set to rise, eyes on oil, rate hopes

4 Min Read

TORONTO, Oct 29 (Reuters) - The Toronto Stock Exchange's main index is set to rise at the open on Wednesday as oil prices climbed further, tracking a global rally in equity markets on hopes that more interest rate cuts would be delivered.

World stock markets put in a second consecutive session of strong bargain-hunting gains, amid widespread expectations of a sharp cut in U.S. interest rates. [MKTS/GLOB]

The U.S. Federal Reserve is expected to chop its benchmark interest rate by at least 50 basis points, which would take the fed funds rate down to 1 percent.

On Tuesday, the S&P/TSX composite index .GSPTSE closed up 614.29 points, or 7.20 percent, at 9,151.63, with all of its 10 main groups higher.

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

Gold Producers to Report Results

Canadian gold producers will report mostly stronger third-quarter profits on the back of higher year-over-year gold prices, although gold miners with base metals byproducts will suffer from the plunge in those prices, analysts say. Agnico Eagle (AEM.TO) will kick off the earnings parade on Wednesday. [ID:nN28406171]

Meanwhile, gold was firmer ahead of the Fed decision. [ID:nLT583263]

Nexen Profit Jumps, Ceo to Retire

Quarterly profit at Canada's No. 4 independent oil explorer more than doubled and was above market expectations. Nexen NXY.TO also announced its chief executive Charlie Fischer will retire at the end of the year and will be replaced by CFO Marvin Romanow. [ID:nBNG218049]

Suncor Profit Below Forecast

Canada's second-biggest oil sands producer posted a lower-than-expected rise in profit as the company's production volumes were hurt by unplanned maintenance in its upgrading and extraction assets. Suncor's SU.TO oil sand production averaged 245,000 bpd. [ID:nBNG286420]

Oil Above $65

Oil was above $65 a barrel, boosted by a surge in global stock markets on expectations the Fed and other central banks are set to cut interest rates to revive global growth. U.S. government data, due at 1435 GMT, is expected to show a rise in crude, products stocks. [ID:nN28430415]

Sherritt Cuts Cost Structures and Capital Spending

The Canadian miner and energy producer said it is cutting its cost structures and capital spending in light of rapidly declining commodity markets. Sherritt S.TO also reported higher third quarter profit. [ID:nWNAB3873]

Restructuring Hits Bce

BCE Inc BCE.TO, the telecommunications giant being taken private in a buyout, posted a lower quarterly profit due mostly to restructuring charges. It said the planned privatization was on schedule. [ID:nN28399225]

Brookfield Properties Ffo, Eps Rise

Brookfield Properties BPO.TO, one of Manhattan's biggest landlords, reported higher third-quarter funds from operations, while net income jumped, primarily because of a property sale gain. [ID:nN27322315]

Insurance Relief

After the market close on Tuesday, Canada's insurance regulator said it will ease guidelines on the capital that insurers need to set aside for guaranteed payments on segregated funds, lifting a concern that weighed on their share prices during the recent equities market plunge.[ID:N28412537]

$1=$1.26 Canadian Reporting by Ka Yan Ng

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