TORONTO, May 21 (Reuters) - Toronto’s main stock market index could open lower on Thursday, pulling back even further from its seven-month high, as weak energy and metals issues weigh on the resource-heavy market.
But gold issues could help temper some of the losses as the precious metal flirts with an eight-week high.
Toronto’s main stock index .GSPTSE climbed more than 1 percent on Wednesday to close at 10,232.44, boosted by rising oil and gold prices, but it pared stronger early gains as investors took profits after a sharp two-day rise. [nN20535913]
Here are some of the stories that may affect the market:
OIL FALLS BELOW $61 AFTER RISE TO 6-MONTH PEAK
Oil fell more than a dollar to below $61 a barrel on Thursday, after hitting a six-month high in the previous session. [nSIN101873]
Copper prices slid on Thursday as industrial metals markets were reminded by data and official forecasts that the road to economic recovery was likely to be long, arduous and fraught with uncertainty. [nLL341053]
The Federal Reserve said on Wednesday it saw modest improvements in the U.S. economy last month, but it still saw big risks and left open the possibility of increasing its purchases of mortgage-related and government debt to keep credit flowing and spur recovery. [nN20492043]
GOLD HITS FRESH 8-WEEK HIGH AS DOLLAR SLIDES
Gold rose to a fresh eight-week high in Europe on Thursday as the dollar slid to its lowest level in five months against a basket of currencies, prompting buying of the precious metal as an alternative asset. [nLL215838]
MAGNA DENIES IT’S IN TALKS TO BUY GM’S SATURN
Magna International MGa.TO denied on Wednesday that it’s in talks with General Motors Corp (GM.N) to buy GM’s Saturn division. [nN20534507]
Potash Corp of Saskatchewan POT.TO said on Wednesday it intends to curtail 2009 potash production by an additional 400,000 tonnes in a bid to cope with the sharp decline in demand for the crop nutrient. [nWEN9426]
Following is a summary of research actions on Canadian companies reported by Reuters on Thursday. For more, see [RCH/CA]
*Genuity raises Canaccord Capital CCI.TO price target to C$10 from C$6; raises rating to buy from hold.
*Barclays raises Talisman Energy Inc TLM.TO price target to C$18 from C$17; Rating Overweight
*Canaccord Adams cuts TransAlta Corp (TA.TO) to Hold from Buy
*RBC cuts Silver Wheaton SLW.N to Sector Perform from Outperform ($1=$1.15 Canadian) (Reporting by Scott Anderson; Editing by Theodore d’Afflisio)