July 8, 2009 / 12:42 PM / 10 years ago

CANADA STOCKS-TSX may open lower as commodity prices drop

TORONTO, July 8 (Reuters) - Toronto’s main stock index could open lower on Wednesday, following world markets, as commodity prices continue to drop and talk about the need for a second U.S. stimulus plan weighs on sentiment.

Economic jitters continued to sweep financial markets on Wednesday, weakening stocks overseas, propelling the Japanese yen to a six-week high and dragging oil down to around $62 a barrel.[ID:nL8503166]

U.S. stock index futures pointed to a flat open on Wednesday, following steep losses the previous session, with investors nervous about the start of the corporate earnings season. [ID:nN08373361]

On Tuesday the S&P/TSX composite index .GSPTSE closed down 183.08 points, or 1.83 percent, at 9,844.35, the second consecutive triple-digit point loss.

Here is some news that could affect the market:


Magna co-CEO tells German Rheinische Post paper it still aims to agree on terms for takeover of GM’s GMGMQ.PK Opel by July 15.[ID:nWEA0154]


RBC Capital Markets won the right to be a U.S. primary dealer of Treasury securities starting on Wednesday, part of a push by the unit of Canada’s largest bank to win more U.S. and European business. [ID:nN07315620]


Global economic recovery is not yet guaranteed and governments will worry about the bill for heavy stimulus spending once it has succeeded, world leaders are set to say at a summit in Italy.[ID:nL8524454]


Oil fell towards $62 a barrel on Wednesday, placing it on course for a sixth consecutive fall and the longest losing streak since mid-December, after the focus sharpened on economic weakness and data showed higher fuel stocks.[ID:nSP441411]


Gold slipped below $920 an ounce in Europe on Wednesday as a firmer dollar versus the euro hit demand for the metal, but remained in a relatively tight range as traders awaited direction from the currency markets.[ID:nL891648] Base metals were also lower.[ID:nSHA84678]


Talk of another U.S. stimulus plan and data showing American consumers falling behind on their bills underscored worries about the global economy on Tuesday, overshadowing an upturn in German manufacturing orders that provided a glimmer of hope.[ID:nSP535668]


Shares of Ivanhoe Mines Ltd rose more than 10 percent on Tuesday, on continued speculation that the Mongolian government is likely to approve the company’s flagship Oyu Tolgoi copper-gold project in the next few days.[ID:nN0792470]


* Raymond James raises McCoy (MCB.TO) target price to C$1.50 from C$1.25; keeps market perform rating.

* Desjardins raises Cogeco Cable (CCA.TO) to buy from hold.

* Genuity starts FNX Mining Co FNX.TO with hold rating, price target of C$8.50.[ID:nBNG449274] For more research, please see: [CA-RCH] ($1=$1.16 Canadian) (Reporting by Nina Lex; Editing by Jeffrey Hodgson)

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