TORONTO, Nov 19 (Reuters) - The Toronto Stock Exchange’s main index is expected to open lower on Wednesday because of oil prices that tumbled to a 22-month low and concerns that the global economic picture could get worse before it gets better.
With no key Canadian economic data or corporate news to sway sentiment, the resource-heavy index could be directed all session by oil prices and events out of the United States.
The Toronto index rose 0.46 percent on Tuesday, snapping a two-session losing streak, as a rally in energy and financial stocks helped counter the drag from nagging concerns about a global economic recession.
Here is news that may affect the market.
Oil prices fell toward $53, touching a fresh 22-month low on Wednesday, due to increasing signs of weakening demand as economic gloom deepened. [ID:nLJ374464]
Bank of Nova Scotia (BNS.TO) said on Tuesday it will take charges of C$595 million after tax in the fourth quarter due to sliding markets and “unprecedented volatility,” marking the first of what could be several bank preannouncements ahead of reporting season. [ID:nN18290738]
Syncrude Canada Ltd has agreed to sign on to the Alberta government’s new royalty regime after holding out for nearly a year, but the world’s largest oil sands producer will do so after a six-year transition. [ID:nN18287153]
Alaska Air Group (ALK.N) is in talks with Canadian manufacturer Bombardier (BBDb.TO) about deferring deliveries of Q400 turboprop aircraft to its Horizon Air unit, the company said in a filing on Tuesday. [ID:nN18613491]
GLOBAL MARKETS-US AUTO FEARS WEIGH ON STOCKS
World stocks and oil fell on Wednesday while government bonds and the yen gained as U.S. car makers begged for a bailout from Washington, adding to evidence that the credit crisis is hitting the real economy. [ID:nLJ728705]
Following is a selection of research actions on Canadian companies reported by Reuters on Wednesday. For more companies, please see [RCH/CA].
* Versant cuts Bombardier price target to C$6.50 from C$7.50, maintains “buy” rating
* RBC cuts Orbit Garant Drilling (OGD.TO) price target to C$2.50 from C$4 with “outperform” rating.
* Goldman Sachs adds Research In Motion RIM.TO to conviction buy list, reports theflyonthewall.com
$1=$1.23 Canadian Reporting by Frank Pingue; Editing by Kenneth Barry