September 3, 2009 / 12:15 PM / 9 years ago

CANADA STOCKS-TSX may gain on firming resource prices

TORONTO, Sept 3 (Reuters) - Toronto’s main stock index may rise on Thursday as key resource prices strengthen, while an overall better tone to overseas equities could also be a lift.

Emerging stocks .MSCIEF advanced, while Shanghai stocks .SSEC climbed after China’s top regulator assured investors that the country’s market was healthy. Chinese stocks have been increasingly correlated with other share markets.

European shares also ticked higher, while U.S. stock index futures pointed to a higher open after a four-day slide.

On Wednesday, the S&P/TSX composite index .GSPTSE climbed 11.54 points, or 0.11 percent, to close at 10,701.32, snapping a two-session decline.

Investor wariness has been growing over a market rally that has driven the resource-laden index up some 40 percent from its 2009 low in early March.

Here is some of the news that may affect the market.


Gold rallied to a fresh three-month high in Europe, extending the last session’s gains, as caution ahead of key U.S. non-farm payrolls data sparked a flight to quality among investors. [ID:nL3429794]

Oil prices rose above $69 a barrel, drawing support from a sharp fall in U.S. gasoline inventories that revived hopes of a demand recovery in the world’s largest fuel consumer. [ID:nNSIN54087]


Nexen NXY.TO said it discovered substantial additional resources in the Golden Eagle area, making it a significant development in the UK North Sea for the company since the Buzzard oilfield. [ID:nBNG407415]


The following is a summary of research actions on Canadian train and aircraft maker Bombardier Inc (BBDb.TO) after it posted a 22 percent decline in quarterly profit on Wednesday.

* Raymond James raises target price to C$4.50 from C$3.50; keeps market perform rating

* Genuity raises to buy from hold

The following is a summary of research actions on MDS MDS.TO after the Canadian life sciences company said on Wednesday it will sell two divisions to focus on isotopes. [ID:nN02528673]

* Desjardins raises price target

* Jefferies raises price target, keeps buy rating

* Dundee Capital upgrades to buy from neutral

For more research, please double click [RCH/CA]


The key back-to-school selling season comes into focus as a number of U.S. retailers report monthly sales. For a preview, click on [ID:nN01482590]


With no Canadian data on tap, investors may turn to U.S. data for hints on the budding economic recovery. Weekly initial jobless claims are due at 8:30 a.m. EDT (1230 GMT), while the Institute for Supply Management non-manufacturing data for August is set for 10:00 a.m. Economists look for 560,000 claims versus 570,000 a week ago.

But the key data is the U.S. nonfarm payrolls report on Friday. Economists polled by Reuters look for a loss of 225,000 jobs. Canada also releases its labor force survey, where 10,000 jobs were likely lost in August. [ID:nN02544477]

Reporting by Ka Yan Ng, Editing by Chizu Nomiyama

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