TORONTO, Sept 16 (Reuters) - Canada’s S&P/TSX composite index .GSPTSE may face pressures from continued financial turmoil in the United States and from lower oil prices. Here is some of the news that could influence the market. Reuters has not verified the accuracy of press reports.
AMERICAN INTERNATIONAL GROUP INC (AIG.N)
AIG, which was thrown a $20 billion lifeline from New York state, came under fresh pressure as rating agencies downgraded the insurer’s debt. [ID:nSP46833] The development follows a global markets meltdown on Monday after Lehman Brothers Holdings Inc LEH.N filed for bankruptcy protection. For details, see [ID:nN13574113]
The U.S. Federal Reserve sets interest rates on Tuesday, with an announcement due around 2:15 p.m. EDT. Short-term interest rate futures are pricing in a cut of 25 basis points. Investors will scrutinize the accompanying statement for clues about corporate prospects.
OIL CLc1 SLIDES
Oil plunges 4 percent to below $92 a barrel on worries turmoil in global financial markets will further undermine fuel demand, and on reports that U.S. oil infrastructure had been spared major damage from Hurricane Ike. [ID:nSP317159]
Gold slips nearly 2 percent to around $776 an ounce as the U.S. dollar firmed ahead of the Fed rate decision [ID:nLG459540], while base metals sagged [ID:nLG521957]
CI FINANCIAL INCOME FUND CIX_u.TO
CI Financial’s efforts to buy Bank of Nova Scotia’s (BNS.TO) mutual fund arm have fallen flat, the Globe and Mail newspaper said. Citing sources familiar with the talks, it said negotiations between the mutual fund giant and the bank were dropped last week without a deal.
Gold Eagle Mines says 96 percent of shareholders overwhelmingly approve business combination with Goldcorp (G.TO) and extends the election deadline to Sept 22. [ID:nWNA4019]
OIL & GAS STOCKS
Scotia Capital adjusts stock ratings and price targets on a number of oil and gas stocks including Niko Resources NKO.TO and Oilexco OIL.TO. ID:[nWNAS1180]
FORDING CANADIAN COAL TRUST FDG_u.TO
Units tumbled 10 percent on Monday as investors worried that its takeover by Teck Cominco Ltd TCKb.TO could be derailed by the U.S. credit crisis. [ID:N15303952] ($1=$1.07 Canadian) (Reporting by Jennifer Kwan; editing by Janet Guttsman)