TORONTO, Feb 23 (Reuters) - Canada’s main stock market index could open lower on Tuesday as weak gold and energy prices weigh on the commodity-laden bourse.
But reports of a $1 billion initial public offering by a subsidiary of Canada’s Barrick Gold Corp (ABX.TO) could temper the losses.
Investors will also take time to digest key U.S. data, including consumer confidence that is expected to show consumers are a little less upbeat.
Toronto’s main stock index closed lower on Monday, snapping an eight-day stretch of gains, dragged down by weakness in resources and financials. [ID:nN22215194]
Here is some of the news that may affect the market.
African Barrick Gold (ABG), a spin-off of Barrick Gold, has launched a London listing to raise about $1 billion that values its assets at about $4 billion, people familiar with the matter said on Tuesday. [ID:nLDE61M0ZX]
Oil broke a five-day rally on Tuesday, although prices were supported near $80 a barrel by ongoing strikes by French oil workers, which could close more than half of the country’s refining capacity.[ID:nSGE61M06K]
Gold eased on Tuesday as the euro lost ground versus the dollar and as the market sought more clarity on U.S. interest rates, looking to this week’s testimony from Federal Reserve Chairman Ben Bernanke for direction.[ID:nLDE61M1C2]
Canada’s Brookfield Asset Management Inc (BAMa.TO) is preparing to bid for a large stake in No. 2 U.S. mall owner General Growth Properties Inc GGWPQ.PK, aiming to outbid Simon Property Group Inc (SPG.N), the Wall Street Journal reported.[ID:nN22218132]
Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. [RCH/CA]
* Macquarie cuts Canaccord Financial (CF.TO) price target to C$9.50 from C$11
* UBS raises Gran Tierra Energy (GTE.TO) to Buy from Neutral
* Raymond James cuts Suncor Energy Inc (SU.TO) target price to C$43 from C$49; Keeps Outperform rating. ($1=$1.04 Canadian) (Reporting by Scott Anderson; Editing by Padraic Cassidy)