TORONTO, Oct 8 (Reuters) - Toronto’s main stock index could be boosted at the open on Thursday as its heavy weighting in resource issues may benefit from record high gold prices and a move in oil prices above $71 a barrel.
Signs of global economic recovery have lured investors back into the TSX all week after allowing it to slip 4.3 percent in the prior two week period.
The latest boost to sentiment came via Wednesday’s surprise profit from Alcoa Inc [ID:nN07320124], followed by Australian employment data that topped expectations and added to the case for more interest rate rises this year. [ID:nSYD431125]
Earlier this week the Reserve Bank of Australia raised its interest rate, becoming the first central bank in the Group of 20 nations to tighten policy as the financial crisis abates. [ID:nSYD520296]
The S&P/TSX composite index .GSPTSE closed up 101.91 points, or 0.91 percent, at 11,349.88 on Wednesday, marking its third-straight day of triple-digit gains.
Here is some news that could affect the market:
Canada will prohibit major banks from marketing insurance products on their websites, marking a major victory for big insurers in a long-running battle with the banking industry. [ID:nN07468589]
MANITOBA TELECOM SERVICES MBT.TO
Manitoba Telecom Services cut its revenue and cash flow outlook for the year on Wednesday, saying its long distance business and enterprise unit were hurt by the recession and the slow pace of economic recovery. [ID:nN07493795]
HUDBAY MINERALS INC (HBM.TO)
HudBay Minerals Inc said it plans to invest $85 million on a ramp to its Lalor deposit near Snow Lake, Manitoba to increase its zinc ore and gold production. [ID:nBNG436205]
CANWEST GLOBAL COMMUNICATIONS CGS.TO
A group of creditors led by Bank of Nova Scotia (BNS.TO) will run the daily newspapers owned by Canwest Global Communications Corp, which announced a long awaited recapitalization plan this week, the Globe and Mail reported on its website late on Wednesday. [ID:nBNG138214]
GOLD HITS RECORD HIGH
Gold prices rallied to record highs for a third successive session in Europe on Thursday, as persistent weakness in the dollar fueled fund buying of the metal as an alternative to the U.S. unit. [GOL/]
OIL ABOVE $70
Oil rose above $70 a barrel on Thursday, retrieving some of the previous session’s losses, supported by signs of global economic recovery and a weaker U.S. dollar. [O/R]
Following is a summary of research actions on Canadian companies reported by Reuters on Thursday. For more, please double click [RCH/CA]
* Raymond James cuts FirstService (FSV.TO) to “market perform” rating from “outperform”.
* Raymond James raises Pengrowth Energy Trust PGF_u.TO price target 5.3 percent to C$10.
* Macquarie raises Open Range Energy ONR.TO price target 20 percent to C$3.
($1=$1.06 Canadian) (Reporting by Frank Pingue; Editing by Theodore d’Afflisio)