(In U.S. dollars unless noted)
TORONTO, Oct 3 (Reuters) - Canada’s S&P/TSX composite index .GSPTSE could open higher on Friday, after a near 7 percent rout in the previous session and ahead of a vote in the U.S. House of Representatives over the $700 billion financial sector bailout plan.
Here is some of the news that could affect the market. Reuters has not verified press reports and does not vouch for their accuracy.
The U.S. House of Representatives is set to debate and vote on the monster rescue plan aimed at tackling the financial crisis after the Senate approved the bill on Wednesday night. [ID:nSP58422] For more links to stories, see: [ID:nCRISIS]
Canadian Imperial Bank of Commerce says it will limit its U.S. residential exposure through a $1.050 billion agreement with a fund arranged by Cerberus Capital Management. [ID:nN03323380]
Prime Minister Stephen Harper admits to concern about global economic trouble but said in Canada’s final election debate that his country was on a far better economic footing than the United States. [ID:nN02305570]
The global financial crisis forced the divestment of a 20 percent stake in auto parts maker Magna to creditors that helped fund the $1.4 billion deal, Russian billionaire Oleg Deripaska says. [ID:nL3629815]
LINENS ‘N THINGS
The small but profitable Canadian chain of Linens ‘n Things has attracted two suitors, Hudson’s Bay Trading Co and private-equity firm Hilco Consumer Capital, the New York Post says. [ID:nBNG258584]
Corel Corp CRE.TO posted a higher quarterly profit as revenue grew in its key segments but the consumer software maker revised its 2008 outlook. [ID:nWNAB5007]
TransCanada Corp says the slide in natural gas prices does not dampen the outlook for its proposed Alaska gas pipeline. [ID:nN02294004]
Unionized workers at Loblaw Companies Ltd operations in Saskatchewan and Alberta are set to walk off the job over the next several days if no contract deals are reached. [ID:nN02306088]
Nexen Inc NXY.TO says the final pre-operational testing of the upgrader is ongoing in its Long Lake oil sands project with first production of premium sweet crude expected in October. [ID:nWNAB4984]
OIL CLc1 TICKS UP
Oil rose above $94 a barrel on expectations that the U.S. House will likely pass the financial rescue plan to stem further global market turbulence. On Thursday, oil plunged more than $4 a barrel amid a broad commodities selloff, [ID:nSP48362] For links to more stories, see [ID:nL1710814]
Gold was higher as the U.S. dollar’s rally paused ahead of key jobs data [nL3273105], while most base metals slumped. [ID:nL3366432].
WELLS FARGO (WFC.N), WACHOVIA CORP WB.N
Wells Fargo & Co agrees to acquire embattled banking group Wachovia Corp for about $15 billion, scuppering a previously announced deal for Citigroup (C.N) to buy parts of Wachovia. [ID:nN03460047]
U.S. jobs data for September shows employers cut payrolls at the steepest rate in 5-1/2 years. The unemployment rate was unchanged from August at 6.1 percent. [ID:nN03286538]
CAE (CAE.TO), JEAN COUTU GROUP
RBC cuts CAE Inc price target to C$12 from C$17 and has an ‘outperform’ rating, while it also cut Jean Coutu Group’s (PJCa.TO) price target to C$10 from C$12. [ID:RCH & CAN] ($1=$1.08 Canadian) (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)