TORONTO, Sept 2 (Reuters) - Toronto’s main stock index may open slightly higher on Wednesday if resource-linked stocks benefit from a rebound in oil prices, but gains may be tentative given concerns the equity rally has run its course.
The S&P/TSX composite index .GSPTSE closed down 178.43 points, or 1.64 percent, at 10,689.78, as investors took profits and grew cautious about gains that have driven the index up about 40 percent since early March.
Similar fretting about the sustainability of this year’s equity rally have hit European and Asian shares as well. [ID:nL2458221]
Here is some of the news that may affect the market.
Gold prices held near $955 an ounce in Europe, supported by a dip in the dollar index ahead of key U.S. economic data due later, which is boosting interest in the precious metal as an alternative asset. [ID:nL2167301]
Oil rose above $68 a barrel, after a 3 percent drop in the previous session, as data showing a fall in U.S. crude stocks raised expectations of demand growth in the world’s biggest energy consumer. [ID:nL2551377]
* See also: BP (BP.L) makes “giant” oil find in Gulf of Mexico [ID:nL2530648]
MDS Inc MDS.TO said it has signed an agreement to sell its MDS Analytical Technologies unit to Danaher Corp (DHR.N), as well as its intention to sell its MDS Pharma Services arm. [ID:nWNAB5961]
Canadian train and aircraft maker Bombardier Inc (BBDb.TO) posted a 22 percent decline in quarterly profit, as business aircraft cancellations continued to exceed the level of new orders. [ID:nBNG500270]
U.S. DATA ON TAP
* Revised Q2 productivity and unit labor costs data at 8:30 a.m. (1230 GMT) is expected to show a rise of 6.4 percent in productivity and a 5.8 percent fall in unit labor costs, matching data in the previous report.
* Economists expect an increase of 2.2 percent in July factory orders, compared with a 0.4 percent rise in June. Data due at 10 a.m.
* At 2:00 p.m., the Federal Open Market Committee issues minutes from its meeting of Aug. 11-12.
Following is a summary of research actions on Canadian companies reported by Reuters on Wednesday. For more, please double click [RCH/CA]
* Raymond James cuts WestJet Airlines (WJA.TO) to market perform from outperform
* Macquarie raises price targets on five Canadian retail property companies [ID:nBNG528382]
MACKENZIE VALLEY NATURAL GAS PIPELINE
The Canadian government needs to muster the political will to ensure the C$16.2 billion Mackenzie Valley natural gas pipeline is built, the Northwest Territories energy minister said. [ID:nN01506777]
Sony Ericsson, Alcatel Lucent SA ALUA.PA and a private equity arm of JP Morgan (JPM.N) are among the candidates shortlisted to buy Nortel Networks Corp’s NRTLQ.PK stake in LG-Nortel, media reported on Wednesday.
(Reporting by Ka Yan Ng)