October 22, 2009 / 12:27 PM / in 8 years

CANADA STOCKS-TSX could start lower on resource stocks selloff

 TORONTO, Oct 22 (Reuters) - Toronto’s main stock index could start lower on Thursday as softer prices for some key Canadian exports may weigh on the resource-heavy index while U.S. corporate earnings could also weigh on sentiment.
 U.S. stock futures are pointing to a slightly lower start on Wall Street after EBay Inc (EBAY.O) forecast results for the fourth quarter at the low end of Wall Street estimates on Wednesday. The tone in U.S. stocks often influences direction in Canada.
 Investors may also keep an eye on the Bank of Canada, which at 10:30 a.m. (1430 GMT) is scheduled to release it Monetary Policy Report, followed shortly by a news conference with Governor Mark Carney.
 Earlier this week the central bank left its key interest rate steady at a record low 0.25 percent and warned that a strong Canadian dollar was undermining economic recovery.
 On Wednesday, the S&P/TSX composite index .GSPTSE fell 96.10 points, or 0.83 percent, to 11,442.02, which marked its first significant drop in a week.
 Here is some news that could affect the market:
 Potash, the world’s largest fertilizer producer, said on Thursday that third-quarter profit fell 80 percent on lower demand and weaker pricing. [ID:nN22505738]
 Precision Drilling, Canada’s largest oil and gas drilling contractor, posted a 13 percent fall in quarterly profit, partly on weaker demand for its services following a slump in oil prices earlier this year. [ID:nBNG534644]
 Oil slipped towards $80 on Thursday as a stronger dollar encouraged investors to lock in profit from a 12-month high hit on Wednesday. [O/R]
 Gold prices softened in Europe on Thursday as a decline in the equity markets dented appetite for risk, benefiting the dollar at the expense of higher-yielding currencies and lifting it from 14-month lows against the euro. [GOL/]
 Following is a summary of research actions on Canadian companies reported by Reuters. For more, please double click [RCH/CA]
 * Blackmont raises Goldcorp (G.TO) price target 1.9 percent to C$54 and ups Cameco Corp (CCO.TO) price target 28 percent to C$41 with “sector perform” rating.
 * Macquarie starts coverage of Lundin Mining (LUN.TO) with “outperform” rating and C$6 target price.
 ($1=$1.05 Canadian)  (Reporting by Frank Pingue, Editing by Chizu Nomiyama)                                      

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