TORONTO, March 3 (Reuters) - Toronto’s main stock index could open higher on Tuesday, after logging its biggest one-day drop in three months in the previous session and as the price of oil and base metals rose.
But the market could track other equity markets lower, with European shares down a day after most markets were battered amid worries about the global financial system. [MKTS/GLOB]
On Monday, the S&P/TSX composite index .GSPTSE closed the session down 435.51 points, or 5.36 percent, at 7,687.51, rattled by weak oil and domestic GDP data, and as investors fretted over the health of the U.S. banking sector, sparked by a huge quarterly loss from American International Group (AIG.N).
Here is some news that could affect the market:
BANK OF NOVA SCOTIA (BNS.TO)
Bank of Nova Scotia, Canada’s third-largest lender, reported weaker quarterly earnings per share on Tuesday as provisions for bad loans more than doubled and its payout of preferred share dividends rose. [ID:nN03452969]
BANK OF MONTREAL (BMO.TO)
Bank of Montreal posted a 12 percent fall in net income for the first quarter, hurt by capital markets environment charges and an 86 percent jump in provision for credit losses. [ID:nBNG226686]
The Bank of Canada is scheduled to deliver its rate announcement on Tuesday morning where it is expected to cut rates to help stave off a deteriorating economy. A Reuters poll last week revealed two-thirds of primary securities dealers forecast the bank would cut its key rate by a half a point to a record low of 0.5 percent.
BCE INC (BCE.TO)
BCE Inc, Canada’s biggest telecom company, is moving to vastly expand its retail presence by buying electronics chain The Source from Circuit City Stores Inc CCTYQ.PK for an undisclosed sum. [ID:nN02427102]
Oil rose above $40 a barrel on Tuesday after a 10 percent drop the day before, but showed no sign of a return to last week’s bull run. [ID:nSP479558]
Gold eased on Tuesday as European equities resumed their slide [ID:nL3170473], while base metals were mostly higher. [ID:nL3161327]
ACE AVIATION HOLDINGS INC ACEa.TO
ACE Aviation Holdings Inc, the parent company of Air Canada ACa.TO, postponed its special shareholders meeting to approve its liquidation plan, citing current market conditions. The special meeting was scheduled for April 7. [ID:nBNG161357]
BMO raises Hanfeng Evergreen HF.TO price target to C$6 from C$5 after company reported quarterly results [ID:nWNAB9169], while Dundee cuts Kinross Gold (K.TO) price target to C$28.00 from C$29.00. [ID:nBNG92031]
WEST FRASER TIMBER CO (WFT.TO)
West Fraser Timber will cut back production at seven of its British Columbia sawmills because of continued weak lumber demand, the company said on Monday. [ID:nN02424128]
West Face Capital Inc, the largest shareholder of oil sands developer UTS Energy Corp UTS.TO, said it had acquired 10 million additional shares in the company, bringing its stake up to 12.3 percent. [ID:nBNG501608]
Nova Chemicals Corp has canceled plans to lay off 400 workers following its agreement to be bought by Abu Dhabi’s International Petroleum Investment Corp, a Nova spokeswoman said on Monday. [ID:nN02423002] ($1=$1.29 Canadian) (Reporting by Jennifer Kwan)