TORONTO, Feb 5 (Reuters) - Canada’s main stock market index looked set to open lower on Friday as weak commodity prices and worries over the financial well-being of some European countries continued to weigh heavily on the market.
Investors will also take time to digest employment data from both sides of the border.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE notched its steepest percentage drop since early October on Thursday, slumping 2.3 pct to 11,128.76.
Here is some of the news that may affect the market.
Canada’s unemployment rate fell to 8.3 percent in January, its lowest rate since September, from 8.4 percent in December as the economy added 43,000 jobs. [ID:nN05253705]
Meanwhile, U.S. employers unexpectedly cut 20,000 in January, while the unemployment rate fell to a five-month low of 9.7 percent. [ID:nN04115255]
European policymakers scrambled on Friday to reassure markets on the stability of their 16-nation currency bloc as investors shed euro assets for a second day on fears about debt-laden member states like Greece and Portugal.[ID:nSGE61407V]
Gold fell nearly 1 percent to below $1,050 an ounce, its lowest since early November, on Friday as the dollar rose on rising risk aversion due to fears over the fiscal health of peripheral euro zone economies. [ID:nLDE6140TJ]
* See also: Chartists eye support for gold around $1,025/oz [ID:nLDE6141C3]
Oil steadied around $73 per barrel on Friday, consolidating after its biggest one-day fall since July, and as the dollar hit a seven-month high against a basket of currencies. [nSGE61405Q]
Canada has reached a tentative deal with the United States to end a dispute over “Buy American” provisions that had strained bilateral ties, the two trading partners announced on Friday. [ID:nN05148972]
Canada’s Bombardier (BBDb.TO) warned that aircraft deliveries in fiscal 2011 will fall about 17 percent as orders for its commercial and business aircraft have fallen drastically.[ID:nN05199939]
Brookfield Properties BPO.TO on Friday said its funds from operations fell 14 percent, weighed down by softer property conditions and undeployed capital, but it sees 2010 FFO above market estimates.[ID:nN04224612]
Aerospace and industrial manufacturer Heroux-Devtek Inc (HRX.TO) posted a third-quarter profit that narrowly missed estimates, hurt by a decline in revenue from its industrial sales segment.[ID:nSGE6140EV]
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]
* UBS cuts Shoppers Drug Mart SC.TO price target to C$50 from C$52; Rating Buy
* RBC cuts TMX Group (X.TO) price target to C$31 from C$33; Rating Underperform
* RBC cuts Fortis Inc (FTS.TO) price target to C$30 from C$31; Rating Sector Perform ($1=$1.07 Canadian) (Reporting by Scott Anderson and Ka Yan Ng; Editing by Theodore d‘Afflisio)