December 15, 2008 / 1:51 PM / in 9 years

CANADA STOCKS-TSX set to edge higher on oil, metals

TORONTO, Dec 15 (Reuters) - Toronto’s main stock index could open higher on Monday on strength in the price of oil, gold and base metals, while investors will also focus on whether a rescue could materialize for the U.S. auto industry.

On Friday, the S&P/TSX composite index .GSPTSE rose 123.55 points, or 1.47 percent, to 8,515.45, as news that the U.S. government might throw a lifeline to troubled automakers helped steer the market clear of what was shaping up to be a big loss.

Here is some of the news that may affect the market:

OIL RISES

Oil rose above $48 a barrel on expectations OPEC will agree on a deep supply cut this week to try to prop up prices, while firmer European equities and a weaker U.S. dollar also helped boost the price. [ID:nSP382169]

GOLD, BASE METALS

Gold extends gains as the U.S. dollar weakens [ID:nL1449620], while base metals were also higher although supply fears could keep gains in check. [ID:nLF132376]

AID FOR FORESTRY, MINING?

Canada will consider special aid to the forestry, mining and other industry in the federal budget due on Jan. 27, the industry minister says. However, the auto sector remained the top priority. [ID:nN14465292]

CLOUD OVER US AUTO BAILOUT

U.S. President George W. Bush said on Monday an announcement on an auto industry rescue was not imminent, leaving the industry’s fate clouded in uncertainty for a little longer. [ID:nN14461208] [ID:nSP382884]

BARRICK GOLD (ABX.TO)

Barrick Gold Corp said operations had resumed at its North Mara Mine in Tanzania after suspending activity last week when some 200 people invaded the site and destroyed property. [ID:nLF701514]

TECK COMINCO TCKb.TO

Teck Cominco Ltd announces the temporary shutdown of the Pend Oreille Zinc Mine, citing reduced metal demand and persistent weakness in zinc prices. [ID:nWNAB2652]

GLOBAL STOCKS

World stocks rose on Monday as investors prepared for another cut in U.S. interest rates this week, mulled year-end bargains and reassessed for the possibility of help for the faltering U.S. auto industry. [MKTS/GLOB] However, U.S. stock index futures were little changed. [ID:nN15523386]

TELECOM OUTLOOK

The outlook for the makers of telecommunications capital equipment is bleak as carriers squeezed by the credit crisis cut back on spending, Barron’s wrote in its Dec. 15 edition. [ID:nN14476800]

CANADIAN RESEARCH

RBC cuts price targets on Canadian oil and gas trusts. [ID:nWNAB2668] For more research see: [CA-RCH] ($1=$1.23 Canadian) (Reporting by Jennifer Kwan; Editing by James Dalgleish)

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