TORONTO, Feb 10 (Reuters) - Toronto’s main stock index may open flat as rising commodity prices, which should support the resource-laden index, duel for attention with U.S. stimulus plans.
Focus is on the stimulus package, as the U.S. Senate is expected to approve a plan worth more than $800 billion. Uncertainty about the timing and contents may keep investors on edge. For more, please see: [ID:nN26365728]
Eyes will also be on U.S. Treasury Secretary Timothy Geithner, who is due to unveil at 11 a.m. (1600 GMT) a plan that will include measures for relieving banks of money-losing assets.
U.S. stock futures pointed to a lower opening on Tuesday as investors worried that the Obama administration’s plans to shore up the financial sector and stimulate the economy may not be enough to ease the worst financial crisis since the 1930s. [ID:nN10256967]
The S&P/TSX composite index .GSPTSE closed slightly higher on Monday to log five straight sessions of gains, boosted by strength in energy issues, but held back by weakness in the materials group due to sliding gold prices.
Below is some of the news that may affect the market.
Gold edged up, supported by safe-haven buying and firmer oil prices but traders largely stuck to the sidelines ahead of a major economic stimulus plan to be announced in the United States. [ID:nLA736052]
Oil rose towards $41 a barrel, lifted by expectations that the approval of a U.S. stimulus package would boost demand for oil. [ID:nSYD426207]
Canada’s Conservative government came under fire from opposition legislators on Monday over plans to raise foreign ownership limits on domestic airlines, including Air Canada ACa.TO, the country’s largest carrier.
* See also: Air Canada unions demand ACE funds pension plan [ID:nN09533524]
Vitran Corp posted a quarterly loss as revenue fell amid weakness in the North American economy and transportation industry. [ID:nBNG237931]
Companies expected to post results on Tuesday:
* Inmet Mining Corp Q4 IMN.TO
* Jazz Air Income Fund Q4 JAZ_u.TO
* Sierra Wireless Inc Q4 (SW.TO)
Latin American silver and gold producer HOchschild Mining Plc has made an all-share takeover offer for its joint venture partner Minera Andes MAI.TO, which has been struggling to find cash. [ID:nLA115912]
Magna International Inc MGa.TO agreed to acquire the European operations of bankrupt U.S.-based rival Cadence Innovation LLC, the Canadian auto parts giant said. [ID:nN10261244]
Canadian legislators will press Bank of Canada Governor Mark Carney to justify his unusually optimistic forecast on the domestic economy when he testifies before a parliamentary committee on Tuesday. Carney and Senior Deputy Governor Paul Jenkins will appear before the finance committee at 9 a.m. (1400 GMT). [ID:nN09540360]
* Genuity raises UTS Energy UTS.TO price target
* Rodman & Renshaw starts Aurizon Mines ARZ.TO with market outperform
* Canaccord Adams, Genuity cut Gran Tierra Energy (GTE.TO) price target, Raymond James raises
$1=$1.22 Canadian Reporting by Ka Yan Ng, Editing by Chizu Nomiyama