October 8, 2009 / 12:16 PM / in 8 years

CANADA STOCKS-TSX may ride resource stocks to higher open

 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.
 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.
 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 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]
 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 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 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)

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