TORONTO, Aug 19 (Reuters) - Toronto’s main stock index looked set to hand back Tuesday’s gains following a selloff in Chinese stocks on concerns about the strength of the global recovery.
The slump in Chinese shares spread to Europe and is likely to continue into the North American session. [ID:nN1982288] The recovery doubts triggered declines in commodity prices, and is likely to pressure the resource-heavy Toronto index.
The S&P/TSX composite index .GSPTSE finished Tuesday up 142.25 points, or 1.35 percent, at 10,673.84, recovering some of Monday’s 2.9 percent tumble.
Here is some of the news that may affect the market.
Gold prices eased below $935 an ounce in Europe as the U.S. dollar firmed, denting interest in bullion as a currency hedge, while fears about underlying demand for the precious metal resurfaced. [ID:nLJ562835]
* See also: INTERVIEW-Investment to stay at forefront of gold demand-WGC [ID:nLI259437]
Oil fell below $69 a barrel after a slump in Chinese shares sent doubts rippling through global markets about the strength of the world economic recovery. Prices had surged by more than 3 percent in the previous session. [ID:nSIN507010]
GM BOARD TO MEET ON OPEL SALE
General Motors [GM.UL] board of directors will discuss the sale of its European business Opel on Friday, with both Magna International MGa.TO and RHJ International SA RHJI.BR in the hunt, several sources close to the deal said.
* See also SCENARIOS on the board decision [ID:nLI202269]
Canada is not likely to block Nortel Networks Corp’s NRTLQ.PK planned $1.13 billion sale of wireless assets to Sweden’s Ericsson (ERICb.ST), the Globe and Mail reported on its website. [ID:nBNG506160]
Following is a summary of research actions on Canadian companies reported by Reuters on Wednesday. For more, double-click [RCH/CA]
* RBC cuts price target on Labopharm DDS.TO
* Blackmont ups price target on AGF Management (AGFb.TO)
Canada’s annual inflation rate hit a 56-year-low in July, when prices fell by 0.9 percent from a year earlier on sharply lower energy prices, Statistics Canada said. [ID:nN19458137] (Reporting by Ka Yan Ng; editing by Jeffrey Benkoe)