TORONTO, Dec 17 (Reuters) - Toronto’s main stock index could open slightly lower on Wednesday as weakness in some commodity prices and enthusiasm over the U.S. Federal Reserve’s interest rate cut fades.
On Tuesday, the S&P/TSX composite index .GSPTSE rose 262.28 points, or 3.1 percent, to close at 8,724.11 after the Fed cut its target for overnight interest rates to a record low range of zero to 0.25 percent, and said it would do everything it can to chase away the economic gloom.
Here is some of the news that may affect the market:
Canadian Finance Minister Jim Flaherty meets on Wednesday with provincial finance ministers to work toward crafting a stimulus package to be delivered in a Jan. 27 budget. [ID:N16292494]
Flaherty said on Tuesday the government will consider providing emergency aid to sectors other than automakers, including the beleaguered forestry industry.
Nexen Inc says it plans to acquire an additional interest in the Long Lake project and the joint venture lands from OPTI Canada Ltd. [ID:nWNAB3586]
HUSKY ENERGY (HSE.TO)
Husky Energy Inc, Canada’s No. 2 oil exploration and refining company, said it will cut its 2009 capital spending budget by 28 percent as it looks to weather low oil prices and economic turmoil. [ID:nN16536039]
The eastern Canadian province of Newfoundland and Labrador will expropriate AbitibiBowater Inc’s timber rights and hydroelectric assets when the company closes its remaining newsprint mill there next year. [ID:N16278059]
Oil fell toward $43 a barrel as the market awaits an announcement from an Organization of the Petroleum Exporting Countries meeting, which is widely expected to agree to a big cut in production in a bid to stop the collapse in oil prices. [ID:nSP305685]
Gold XAU= edged down in Europe as traders took profits after the previous session’s gains on the back of a larger-than-expected interest rate cut from the Federal Reserve [ID:nLH366054], while most base metals were up. [ID:nLH270935]
Lifesciences company MDS Inc MDS.TO reported a quarterly loss on Wednesday, hurt by weak performances from two of its three key divisions. [ID:nN17311164]
European stocks fell [MKTS/GLOB] while U.S. stocks futures were pointing to a weaker open on Wall Street as enthusiasm over the Federal Reserve’s interest rate cut waned as investors focused on the dismal economic outlook. [ID:nN17312212]
National Bank cuts its price target for Telus (T.TO) to C$38 from C$42, while Genuity cuts the company’s price target to C$40 from C$41. [ID:nBNG330099] For more research see: [CA-RCH] ($1=$1.21 Canadian) (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)