TORONTO, April 15 (Reuters) - Toronto’s main stock index could open higher on Wednesday as a rise in the price of oil and gold could spark a rally in the resource-heavy index after its streak of gains was snapped in the previous session.
And with no Canadian economic data due out to set a tone, investors may look to the U.S. consumer price index data and a report on housing for direction.
The next Canadian data that could draw attention is Thursday’s February manufacturing sales report and the consumer price index data for March due out on Friday.
The CPI report will be the last major piece of data for the Bank of Canada to consider ahead of its key interest rate announcement on April 21.
The central bank cut its key rate to a historic low of 0.5 percent in March and has signaled it may take extra steps to pump money into a system that remains short of credit.
The S&P/TSX composite index .GSPTSE rose to its highest level in three months on Tuesday before a drop in oil prices weighed on energy stocks and sent the TSX to its first lower close in four sessions.
Here is some of the news that may affect the index:
Oil rose above $50 a barrel on Wednesday, ahead of OPEC’s latest monthly market report, which is expected to make a big cut in world oil demand forecasts. [ID:nSIN150467]
Canadian fertilizer maker Agrium Inc (AGU.TO), which has launched an unsolicited offer for U.S. rival CF Industries CF.N, said on Wednesday it mailed a letter to CF shareholders urging them to withhold votes for CF’s three director nominees up for reelection at the company’s annual meeting next week. [ID:nWNAB3527]
Gold firmed on Wednesday as the dollar softened versus the euro, boosting the metal’s appeal as an alternative investment, but prices remained rangebound amid conflicting signals on inflation and the outlook for equities. [ID:nLF249622]
Following is a list of research on Canadian-listed companies. For more, please see [RCH/CA].
* Genuity raises Gammon Gold GAM.TO to a “hold” rating from “sell”
* Raymond James raises Denison Mines DML.TO target price 25 percent to C$1.50 with a “market perform” rating.
* Raymond James raises Candente Resource DNC.TO target price by 50 percent to 45 Canadian cents and maintains an “outperform” rating.
$1=$1.21 Canadian Reporting by Frank Pingue, Editing by Chizu Nomiyama