TORONTO, Jan 22 (Reuters) - Toronto’s main stock index could open lower on Friday given investor concern about the impact of a White House plan to clamp down on financial risk taking, which could dent flows into the asset class.
Stock markets from Australia to Germany fell with many financial shares, as well as the dollar, pressured by the U.S. proposal [.N], and the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE could follow world indices down.
Canadian stocks fell hard for a second session and hit their lowest point in five weeks on Thursday, rattled by falling commodity prices after U.S. President Barack Obama laid out the sweeping restrictions on banks.
Here is some of the news that may affect the market:
Obama threatened to fight Wall Street banks on Thursday with new proposals to limit financial risk taking, sending stocks and the dollar tumbling. [ID:nLDE60L0F0]
The U.S. dollar fell broadly after Obama proposed new rules for banks that some investors said would squeeze profits but the yen later pared gains against the greenback as risk aversion abated. [FXNEWS]
Oil steadied around $76 as commodities across the board held their ground after dropping on Obama’s proposed reforms of banks’ trading. [O/R]
Gold firmed in Europe as the dollar fell broadly, retreating from six-month highs versus the euro, after Obama proposed tough new rules to limit financial risk-taking by banks. [GOL/]
Canadian retail sales are expected to fall modestly in November on a decline in new vehicle sales, though non-vehicle sales are seen rising. The figures will be closely watched by forex and bond markets seeking indications on timing of a Bank of Canada interest rate hike.
Figures are expected for the Canadian government’s budget deficit for December and for the fiscal year to date. The deficit was C$31.95 billion in April-Dec 2008-09.
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]
* UBS raises Kinross Gold Corp (K.TO) price target to $25.50 from $25; rating “buy”
* UBS raises Niko Resources Ltd (NKO.TO) price target to C$125 from C$106.25; rating “buy”
* Raymond James cuts Inmet Mining Corp IMN.TO price target to C$95 from C$100; rating “outperform”
$1=$1.05 Canadian Reporting by Claire Sibonney; Editing by Chizu Nomiyama