Oct 4 (Reuters) - Toronto’s resource-heavy index could open lower on Monday as a firmer U.S. dollar pressured commodity prices and a Swiss plan to tighten banking rules raised fears of smaller bank profits.
FACTORS TO WATCH
* Canadian equity futures <0#SXF:> pointed to a lower open.
* U.S. stock index futures were lower after Swiss plans to tighten banking rules weighed on markets. Switzerland will seek to require global banks UBS AG and Credit Suisse to hold more top-quality capital. [.N] [ID:nLDE6920GP]
* European share prices fell to a one-month low, with a major index below a key technical level as concerns over the pace of recovery pressured miners and oil majors. [.EU]
* Most Asian markets were up, but Japan’s Nikkei fell 0.3 percent, taking its cues from the currency markets ahead of a Bank of Japan policy decision. The market expects further easing, albeit a minor move.
COMMODITY PRICE MOVES
* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.41 percent in early trade.
* Oil eased from a two-month high as investors locked in profits after a recent rally. But markets remained cautious about the pace of the recovery and speculation of further monetary policy easing. [O/R]
* Gold firmed, supported near record highs as investors fretted about the outlook for the dollar amid speculation of further U.S. monetary easing. [GOL/]
* Copper dipped, heading away from a two-year peak as the dollar recovered and inventories ticked up. [MET/L]
CANADIAN STOCKS TO WATCH
* BHP Billiton on Friday asked a U.S. court to dismiss a lawsuit filed by Potash Corp POT.TO, which alleges that BHP misrepresented material facts related to its $39 billion hostile bid for the world’s largest fertilizer maker.[ID:nN01245129]
* Canadian National Railway (CNR.TO): Canada’s largest rail carrier and the union representing 2,700 conductors, trainmen and yard crews reached a tentative deal on Friday, averting a possible labor showdown at the company.[ID:nN01247893]
* Great-West Lifeco Inc (GWO.TO), one of Canada’s largest life insurers, will appeal a court ruling ordering it to pay C$456 million in a case related to the 1997 takeover of London Insurance Group. [ID:nN03278592]
* MI Developments Inc’s MIMa.TO controlling shareholder said on Friday it would make an offer of $13 per share, or $607 million, to buy out the remaining shares of the real estate company. [ID:nN01248355]
* ATCO Ltd (ACOx.TO): The company’s 378-megawatt Unit 1 at the Sheerness coal-fired power plant in Alberta, Canada, shut by early Saturday, the Alberta Electric System Operator said in a report. Meanwhile, unit 2 continued to operate as usual. [ID:nSGE693073]
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
* RBC raises Astral Media ACMa.TO raised price target to C$46 from C$44; rating outperform.
* Raymond James cuts DragonWave Inc DWI.TO to underperform from market perform. ($1=$1.02 Canadian) (Reporting by Bangalore newsroom and Jennifer Kwan)