TORONTO, Jan 7 (Reuters) - Toronto’s main stock index may open higher on Wednesday and extend its winning streak to a seventh session as the resource-heavy index could receive another boost from higher oil prices.
The price of oil neared $49 a barrel, comfortably off last month’s low of $32.40, helped in part by escalation of the Ukraine-Russia price dispute that has choked off gas supplies.
But gains on the overall Toronto market could be minimal and short lived as the lack of any significant domestic news could see the index influenced by U.S. markets, which are pegged to open lower given news that Alcoa Inc (AA.N) will cut more than 15,000 jobs as it reduces aluminum production.
The S&P/TSX composite index .GSPTSE is coming off its sixth straight rising session, with Tuesday’s gain powered by its three biggest sectors -- energy, materials and financials.
Toronto’s main index has rallied 13.9 percent over the past two weeks and is 23.8 percent above its five-year low hit in November.
Here is some of the news that may affect the market:
Oil climbed towards $49 a barrel on Wednesday, drawing support from cold weather and an escalation in the Ukraine-Russia dispute that has choked off natural gas supplies and increased demand for oil products. [ID:nL7335836]
Gold steadied in Europe on Wednesday, with a softer dollar and firm investment demand supporting prices but weaker oil markets keeping a lid on gains. [ID:nL7388437]
There is no domestic data scheduled for release until Thursday’s Ivey Purchasing Managers Index report for December. That means U.S. data on Wednesday, including the ADP National Employment report, could set the tone in Canada.
For more, please see [ECI/CI]
Following is a summary of research actions on Canadian companies. For more, please see [RCH/CA]
* National Bank cuts Rogers Communications (RCIb.TO) price target by 2.3 percent to C$43 with “outperform” rating.
* Genuity downgrades Gammon Gold GAM.TO to “sell” rating from “hold”. ($1=$1.18 Canadian) (Reporting by Frank Pingue; Editing by James Dalgleish)