November 19, 2008 / 1:34 PM / 9 years ago

CANADA STOCKS-Toronto stocks to open down as oil prices tumble

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 FALLS TO 22 MONTH LOW

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]

SCOTIABANK SEES C$595 MLN IN Q4 WRITEDOWNS

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 AGREES TO NEW ALBERTA ROYALTY DEAL

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 MAY DEFER BOMBARDIER PLANE DELIVERIES

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]

RESEARCH ROUNDUP: RESEARCH IN MOTION, BOMBARDIER

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

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