TORONTO, Jan 5 (Reuters) - Toronto’s main stock market could open higher on Tuesday as firm commodity prices support the resource-heavy market and the Canadian dollar touches a 2 1/2 month high against its U.S. counterpart.
Activity is expected to be cautious, however, as investors take time to digest some key U.S. data including November factory orders and home sales.
Toronto’s main stock market finished at its highest level in 15 months on Monday, rising more than 1 percent as soaring oil and gold prices and global manufacturing data suggested more improvement in the world economy. [nN04251204]
Here is some of the news that could affect the market:
The Canadian dollar hit a 2 1/2-month high against the U.S. dollar on Tuesday as commodity-linked currencies were supported by a rally in oil prices.[nLDE60417B]
Gold rose in Europe on Tuesday as the dollar extended the previous session’s losses against the euro, with hopes for a global economic recovery encouraging investors to favor riskier assets over the greenback.[nLDE6040UN]
Oil edged up toward $82 a barrel on Tuesday, rising for the ninth straight session, as cold snaps in key consumers the United States and Europe boosted demand for heating fuel.[nSGE60404N]
The dollar slipped across the board on Tuesday as investors poured fresh funds into riskier assets at the start of 2010, and as the market awaited minutes of the Federal Reserve’s most recent policy meeting and U.S. jobs data later in the week.[nLDE6040XC]
Mediated talks between Brazilian miner Vale VALE5.SA and union leaders on Monday over a five-month strike at its Voisey’s Bay nickel mine in Eastern Canada have failed to bring the two sides back to the bargaining table, meaning no end to the strike is in sight.[nN04196713]
Nestle NESN.VX ruled itself out of a bid war over Cadbury CBRY.L and Kraft KFT.N sweetened its $16.4 billion offer with a bigger cash portion, raising expectations the U.S. food group will win its prize.[nLDE6040C0]
Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. [RCH/CA]
* Credit Suisse raises Potash Corp POT.TO to Outperform rating
* RBC cuts Cineplex Galaxy Income Fund CGX_u.TO to Sector Perform from Outperform
* UBS raises Petrobakken Energy Ltd PBN.TO price target to C$42.50 from C$42; rating Buy ($1=$1.03 Canadian) (Reporting by Scott Anderson, Editing by Chizu Nomiyama)