TORONTO, Jan 12 (Reuters) - Toronto’s main stock market index was seen opening lower on Monday, with the influential energy group leading the way, as the price for U.S. crude oil dipped 5 percent on demand worries.
Gold shares could also fall as its price fell 1 percent on weaker oil and a falling U.S. dollar.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed sharply lower on Friday as employment data from Canada and the United States provided more evidence of a global recession, undercutting oil prices and shaking the resource-heavy TSX. The S&P/TSX composite index finished down 136.40 points, or 1.5 percent at 9,085.18.
Here is some of the news that may affect the market:
Oil CLc1 fell more than $2 to below $39 a barrel on Monday, dragged down by widespread evidence that deepening recession was reducing global energy consumption. [nSYD425287]
Gold slipped 1 percent on Monday as oil dropped and the euro extended losses against the dollar, while physical demand was seen softening. [nLC252765]
AIG CLOSE TO DEAL FOR CANADIAN LIFE UNIT-SOURCE
American International Group Inc (AIG.N) is close to a deal to sell its Canadian life insurance business, a source close to the transaction said on Friday. [nN09314095]
RIO TINTO SLOWS KITIMAT SMELTER EXPANSION - UNION
Rio Tinto (RIO.L) has all but halted its $2.5 billion expansion of the Kitimat aluminum smelter in British Columbia, the union which represents workers at the facility said on Friday. [nN09498469]
Following is a summary of research on Canadian companies. For more, please see [RCH/CA]
* Genuity raises National Bank of Canada (NA.TO) to buy from Hold
* Genuity starts Aecon Group (ARE.TO) with buy rating; Price target of C$14
* Versant starts Boralex (BLX.TO) with buy, price target of C$13.50
* RBC raises Magna International (MGA.N) price target to $50 from $45; Rating outperform
* RBC raises ACE Aviation Holdings ACEa.TO price target to C$15 from C$12.75 ($1=$1.20 Canadian) (Reporting by Scott Anderson; Editing by James Dalgleish)