TORONTO, Feb 24 (Reuters) - Toronto’s main stock index may open higher on Tuesday as investors look for beaten-down shares the day after the index slid to its lowest closing level in more than five years.
The positive tone in the price of oil may lend some support to the energy group, which dropped 5 percent in the previous session, but the falling price of gold may offset.
Meanwhile, U.S. stock index futures pointed to a higher open as investors scoured the market for bargains after Monday’s slide, which had prompted similar declines in overseas markets.
The S&P/TSX composite index .GSPTSE fell nearly 4 percent on Monday, hit by lower commodity prices, weak economic data and nagging concerns about U.S. banks.
Below is some of the news that may affect the market.
Autoparts maker Magna International MGa.TO reported a quarterly loss, hurt by a slump in global vehicle production and sales. It expects the first half of 2009 to be particularly challenging, as many original equipment manufacturers struggle to reduce dealer inventories. [ID:nN23445856]
HudBay Minerals (HBM.TO) said on Monday it had terminated its agreement to acquire Lundin Mining (LUN.TO), currently valued at about C$731.6 million, as it believes its shareholders would not approve the deal given current market conditions. [ID:nN23445856]
Gold was little changed in Europe as buyers took a break after the metal’s rally to an 11-month high above $1,000 an ounce last week. [ID:nL1449620]
* See also: NovaGold full-year loss widens [ID:nWEN4975]
Oil ticked up above $38 a barrel as investors took a fresh look at OPEC’s greater than expected success in cutting supplies. Prices had tumbled earlier following Monday’s fall in U.S. stocks to a 12-year low. [ID:nSIN379847]
Fed Chairman Ben Bernanke may offer assurance for the troubled economy and he will likely be pressed on government plans to clean up the financial sector as he delivers the U.S. central bank’s semiannual monetary policy report to Congress. The testimony occurs over two days, starting at 10 a.m. (1500 GMT).
Following is a summary of research actions on Canadian companies reported by Reuters. For more, please double click [RCH/CA]
* RBC cuts Russel Metals (RUS.TO) to sector perform from outperform
* Credit Suisse cuts Barrick Gold (ABX.TO) price target
* Barclays cuts Nova Chemicals NCX.TO price target
$1=$1.25 Canadian Reporting by Ka Yan Ng; Editing by Jeffrey Hodgson