TORONTO, March 9 (Reuters) - Canada’s main stock market index may open lower on Tuesday as weak oil and gold prices constrain the resource-heavy index.
But stronger-than-expected results from another of the country’s big banks could shine the spotlight on the country’s heavily weighted financial sector.
Canada’s main stock market index slipped on Monday after touching its highest point in eight weeks, as weaker bullion prices weighed on gold producers.[ID:nN08196024]
Here is some of the news that may affect the market.
Oil prices slipped back from eight-week highs on Tuesday on expectations of a rise in U.S. crude inventories and a slightly stronger dollar.[ID:nLDE6280F1]
Gold prices eased in Europe on Tuesday as a firmer dollar curbed buying, but the metal found good support from bargain hunting around session lows after its 1 percent fall in the previous session.[ID:nLDE6280WS]
Bank of Nova Scotia BNS.TO said profit rose 17 percent in the first quarter as domestic banking earnings surged 28 percent on stronger mortgage sales and deposits, offsetting a rise in loan loss provisions. [ID:N08126522]
The price of gold is likely to fall 20 percent or more before the end of 2011, said Don Drummond, chief economist of Toronto-Dominion Bank on Monday.[ID:nN09186131]
Texas Instruments TXN.N raised the low end of its quarterly earnings and revenue forecast, and said it was struggling to fill orders in time as demand for chips rose faster than it could make them.[ID:nN08195713]
WestJet Airlines Ltd WJA.TO launched its long-awaited loyalty program on Monday, hoping to win and keep more customers at a time when airline travel is starting to recover after a bruising slowdown.[ID:nN08195939]
Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. [RCH/CA]
* UBS cuts Bombardier Inc BBDb.TO to Neutral from Buy
* Morgan Stanley starts Canadian Pacific Railway CP.N with equal-weight rating; price target of $57
* Raymond James cuts Quadra Mining Ltd QUA.TO target price to C$35 from C$38; Rating Strong Buy. ($1=$1.03 Canadian) (Reporting by Scott Anderson, Editing by Chizu Nomiyama)