TORONTO, Nov 3 (Reuters) - Toronto’s main stock index may fall at the open on Tuesday in line with declines in global stock markets, and could also be pressured by the falling price of oil.
But gold returned to near-record prices, which could limit the downside on the S&P/TSX composite index .GSPTSE.
The main index finished lower on Monday, hurt by profit-taking and a selloff in shares of BlackBerry maker Research In Motion RIM.TO following an analyst downgrade. The index closed 32.40 points lower at 10,878.35. [.TO]
Here is some of the news that may affect the market.
COMMODITY PRICES: OIL, GOLD
Oil slipped towards $77 a barrel as the U.S. dollar rose against a basket of currencies and as stock markets slipped in Europe and Asia. [O/R]
Gold rose towards last month’s record, partly on news the IMF had completed half of a planned gold sale. [GOL/]
Talisman Energy Inc TLM.TO, Canada’s third-largest independent oil explorer, said its third-quarter profit plummeted 98 percent as oil and gas prices tumbled from a year earlier. [ID:nBNG167181]
* See also: Talisman adds acreage in Pennsylvania marcellus & Montney Shale [ID:nWNAB8815]
Kinross Gold (K.TO) said it slipped to a loss in the third quarter, as higher costs associated with a mine expansion offset the positive impact of soaring gold prices. The gold miner last week cut its 2009 production outlook and raised its cost guidance. [ID:nN02462973]
RESEARCH ROUNDUP: Genuity raises Suncor to “buy”
Brokerage Genuity raised price targets on several senior oil and gas explorers and producers, including Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), EnCana Corp (ECA.TO), Nexen Inc NXY.TO, and Talisman Energy. It also raised its rating on Suncor to “buy” from “hold”. [ID:nWNAB8837]
Other research actions [RCH/CA] on Canadian companies reported by Reuters on Tuesday include:
* RBC starts Precision Drilling Trust PD_u.TO, 4 others
* Raymond James cuts Heroux-Devtek (HRX.TO) target price, Scotia raises
U.S. officials have asked for more information about the planned sale of MDS Inc’s MDS.TO Analytical Technologies Division to Danaher Corp (DHR.N), the companies said. MDS, a Canadian healthcare company, announced the $650 million deal in September. [ID:nN03484631]
Air Canada ACa.TOACAb.TO, hounded by bankruptcy fears earlier this year, is creeping out of the dog-house after a recent fund-raising, a sign that an industry downturn is ending and confidence in the carrier’s management is growing. The stock has been upgraded twice in two weeks. [ID:nN02439935]
ENBRIDGE INCOME FUND
Enbridge Income Fund ENF_u.TO said it has proposed a restructuring of the fund to convert from a tax-advantaged income trust to a taxable Canadian corporation as required by the law, which comes into effect on Jan. 1, 2011. [ID:nBNG142081]
U.S. FEDERAL RESERVE
The U.S. central bank begins on Tuesday its two-day meeting on interest rates. The Fed is not expected to depart from a policy of maintaining low rates for an extended period of time but it could discuss how to prepare markets for an eventual policy shift. [ID:nN01437140]
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)