TORONTO, March 2 (Reuters) - Toronto’s main stock index could open lower on Monday as resource issues fall on weakness in underlying commodities, while financials could drop after AIG (AIG.N) reported a massive quarterly loss.
On Friday, the S&P/TSX composite index .GSPTSE closed down 63.80 points, or 0.78 percent, to 8,123.02, after three days of gains as the U.S. government’s announcement that it will take an equity stake in Citigroup put pressure on the heavily weighted financial sector.
Here is some news that could affect the market:
U.S. insurer American International Group Inc reported a $61.7 billion ($47.83 billion) fourth quarter loss on Monday — the largest loss in U.S. corporate history — after reaching a revised rescue deal with the U.S. government. [ID:nN02379694] [ID:nN02374890]
World stocks drop sharply to their lowest levels in almost six years on Monday after a big rights issue by HSBC (HSBA.L) and on AIG’s massive quarterly loss and multibillion dollar lifeline. [ID:nL2130432]
Canada’s economy suffered its biggest quarterly contraction since 1991 in the fourth quarter of last year, a report is expected to show on Monday. [ID:nN26546382]
Canadian Finance Minister Jim Flaherty warned Canadians to expect a “substantive” economic contraction when figures for fourth quarter gross domestic product are released at 8:30 a.m., the Globe and Mail newspaper said on Monday. [ID:N02388013]
Bank of Nova Scotia (BNS.TO)
Bank of Nova Scotia is among three or four foreign banks interested in buying a 48 percent stake in Thailand’s Siam City Bank SCIB.BK, the Thai Bank said on Monday. [ID:nBKK336476]
Media company Canwest Global Communications Corp has agreed to extend until March 11 discussions with lenders relating to a senior credit facility. [ID:nN27378807]
OIL CLc1 below $43/barrel
Oil fell to below $43 a barrel on Monday as a deteriorating world economy threatened to cut further into fuel consumption and made OPEC’s tight compliance with supply curbs look insufficient. [ID:nL2397521]
Gold climbed nearly 2 percent in Europe on risk aversion after insurer AIG sought a third bailout from the U.S. government and as equities fell [ID:nL2231531], while base metals also fell. [ID:nL2406685]
Canada’s industry minister said the government is willing to negotiate an aid deal with General Motors Corp (GM.N) and Chrysler LLC past an end-of-March deadline, the National Post newspaper said on its website. [ID:nN28382164]
CANADIAN OIL & GAS COS
Raymond James cuts price target for some Canadian oil and gas companies including Canadian Natural Resources (CNQ.TO) to C$57 from C$67.50, and EnCana Corp (ECA.TO) to C$50 from C$58. For more research please see: [ID:nBNG478223] ($1=$1.29 Canadian) (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)