TORONTO, Oct 10 (Reuters) - Canada’s S&P/TSX composite index .GSPTSE may be pressured on Friday as oil tumbled below $83 a barrel on fears demand will shrink if the global economy goes into recession.
Here is some of the news that could affect the market.
Canada plans to buy up to C$25 billion in insured mortgages in a bid to help cushion the blow from the global financial crisis and address the “scarcity” of private sector lending, Finance Minister Jim Flaherty says. [ID:nN10361962]
Canadian employment unexpectedly soared by 107,000 jobs in September, according to Statistics Canada data. Most of the increase was in part-time employment but even the rise in full-time jobs exceeded the increase in total employment foreseen in a Reuters survey of analysts. [ID:nN10365080]
Canada’s trade surplus defied expectations and jumped to C$5.8 billion in August from C$4.2 billion in July, Statistics Canada data shows. [ID:nN08254064]
The ruling Conservatives extend a lead that had been cut by the financial crisis, two polls show, though a third survey showed the race unchanged. The general election is on Oct. 14. [ID:nN09338392]
Shares of Canadian financial stocks, and life insurance companies in particular, take a severe drubbing, dragged down by fears over the outlook for U.S. insurers and on irrational selling rather than business fundamentals, analysts say. [ID:nN09462020]
OIL CLc1 TUMBLES
Oil sinks below $83 a barrel on expectations global demand growth will shrink if the credit crisis pushes the world economy into recession. [ID:nT134769]
Gold rises above $900 an ounce as investors sought safety amid persistent concerns about the health of the global economy, while most base metals were lower on mounting fears of a looming recession. [ID:nLA54428], [ID:nSP234537]
Genuity cuts Groupe Aeroplan price target to C$16.00 from C$18.50 with a ‘buy’ rating, while the brokerage also cut price targets on seven other companies. [ID:nWNAS4076]. For more research, see [RCH-CAN]
MAPLE LEAF FOODS (MFI.TO)
Threats of food poisoning from sliced meats produced by a Maple Leaf Foods Inc plant in Toronto seem to have done little to curb Canadians’ fondness for deli-style sandwiches, even as the company reported it had found more listeria bacteria. [ID:nN09310031.
The company’s chief executive says finding listeria in its Toronto meat plant is no surprise. [ID:nN09313689] ($1=$1.17 Canadian) (Reporting by Jennifer Kwan; Editing by James Dalgleish)
