TORONTO, Sept 23 (Reuters) - Toronto’s main stock index could get off to a flat to higher start on Wednesday, but potential gains could be capped by mixed commodities and by investor caution.
World stocks drifted higher on Wednesday and hovered near a recent 11-month high, though investors traded cautiously ahead of a Federal Reserve policy decision later in the day. U.S. stock index futures pointed to a flat to higher open. [MKTS/GLOB] [.N]
On Tuesday, the S&P/TSX composite index .GSPTSE ended up 161.12 points, or 1.41 percent, at 11,585.73, just shy of topping the 11-month high it reached last week.
Here is some news that could affect the market:
BANK OF CANADA
The Bank of Canada repeated its conditional pledge on Wednesday to hold interest rates at their current low level until mid-2010 and said the strong Canadian dollar remains a risk to growth. [ID:nN23387254]
Separately, Bank of Canada Governor Mark Carney said on Tuesday Canada’s economy has started the slow climb to recovery but only because of the emergency measures taken by the government and central bank, with business activity still lagging. [ID:nN22355648]
U.S. FED ANNOUNCEMENT
U.S. Federal Reserve’s Federal Open Market Committee makes a rate announcement about 2:15 p.m. (1815 GMT). The Fed is widely expected to hold interest rates where they are, near zero percent. [ID:nN22369584]
FORD IN CANADA
Ford Motor Co’s (F.N) Canadian subsidiary faces a C$1.8 billion shortfall in its pension plan, the Globe and Mail said, citing a company letter to employees and retirees. [ID:nBNG371588]
Oil fell towards $71 a barrel on Wednesday, pressured by doubts over U.S. demand after industry data showed a surprise build in crude oil stockpiles. [O/R]
Gold held steady on Wednesday, near last week’s 18-month high and supported by dollar weakness, but gains were capped by discomfort over the extent of long positioning in futures markets and risk of liquidation. [GOL/]
BASE METALS DIP
Copper prices dipped on Wednesday, as investors fretted about signs of faltering demand from major consumer China. [ID:nLN502482]
OYU TOLGOI MINE
Partners Rio Tinto (RIO.AX) (RIO.L) and Ivanhoe Mines (IVN.TO) expect Mongolia to approve their huge Oyu Tolgoi copper and gold mine soon, and the two miners are considering potential investments by sovereign wealth funds. [ID:nLN496294]
BOMBARDIER INC (BBDb.TO)
Bombardier Inc will make a decision within the next few weeks on how deeply it will cut production in its commercial aircraft division, the company’s chief financial officer said on Tuesday. [ID:nN22158670]
Raymond James raises GLV GLVa.TO to strong buy from outperform; price target to C$12 from C$10.
Raymond James raises Canadian Pacific Railway (CP.TO) price target to C$55 from C$45; keeps market perform rating.
For more research, please see: [CA-RCH]
($1=$1.07 Canadian) (Reporting by Jennifer Kwan; Editing by Theodore d’Afflisio)