TORONTO, Nov 20 (Reuters) - Toronto’s main stock market index could open lower on Friday as a stronger U.S. dollar and weaker oil prices put pressure on the resource stocks.
The key gold and oil companies, which account for a large proportion of the overall weighting on the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE, were expected to feel pressure as the prices for the key commodities weaken.
Toronto’s main stock index skidded on Thursday as oil prices dropped and Manulife Financial (MFC.TO) rattled investors by announcing a surprise, C$2.5 billion stock offering.[nN19192763]
Here is some of the news that may affect the market:
Oil edged lower dropping below $77 a barrel on Friday, extending a 2 percent drop in the previous session and pressured by a stronger U.S. dollar. [nSP361511]
Gold held near $1,140 an ounce in Europe on Friday as the upward momentum which has lifted prices more than 9 percent this month was kept in check by a recovery in the dollar index .DXY. [nLK597783]
Canada’s economy performed worse than expected in the third quarter and while now recovering, it risks further setbacks due to the sharp rise of the Canadian dollar, Bank of Canada Governor Mark Carney said on Thursday. [nN19514256]
Dell Inc’s DELL.O quarterly profit plunged 54 percent on lower-than-expected sales as it lost market share to competitors engaged in a budding price war in the PC market. [nN19191886]
The dollar rose on Friday, extending the previous day’s gains as investors retreated from riskier assets, taking the shine off higher-yielding currencies such as the Australian dollar. [nLK639650]
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]
* Genuity raises Celestica Inc (CLS.TO) to Buy from Hold
* Canaccord Adams cuts Royal Host REIT RYL_u.TO price target to C$1.50 from C$1.80; Rating Sell. ($1=$1.07 Canadian) (Reporting by Scott Anderson; Editing by Theodore d’Afflisio)