TORONTO, Jan 25 (Reuters) - Toronto’s main stock index could open lower on Monday as slipping oil prices and uncertainty over U.S. plans to limit risk-taking by banks could weigh on energy producers and financial stocks.
But losses in the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE could be offset by higher gold prices, which could boost producers of the precious metal.
The index could also follow U.S. futures higher, ahead of a slew of earnings including bellwethers Apple Inc (AAPL.O) and Texas Instruments Inc TXN.N, and as embattled Federal Reserve Chairman Ben Bernanke edged closer to winning support for a second term. [.N]
Canadian stocks slid to their lowest point in six weeks on Friday, roughed up by falling oil prices and by weaker financial issues that were still reeling from the White House plan to impose tighter restrictions on U.S. banks.
Here is some of the news that may affect the market:
Oil prices steadied below $75 a barrel, after slipping towards a one-month low on continued market unease over possible tighter Chinese monetary policy and a U.S. proposal to toughen bank trading rules. [O/R]
Gold climbed above $1,100 an ounce in Europe as the dollar eased broadly, while renewed physical and safe-haven buying also helped support prices. [GOL/]
Canadian gold miner New Gold (NGD.TO) said it expects its annual gold production to increase by about 10 percent to 20 percent over 2009 levels, helped by increased production from its Mesquite gold mine in California. [ID:nN25176011]
Motorola Inc MOT.N has asked U.S. regulators to bar Research In Motion RIM.TO RIMM.O from the U.S. sale of its products, accusing the BlackBerry maker of infringing on five Motorola technology patents. [ID:nN22172687]
Thompson Creek Metals Co TCM.TO said it will report its 2009 financial results as per U.S. generally accepted accounting principles, and sees a net loss for the year due to the change in the accounting method. [ID:nSGE60O0GP]
CANADIAN OIL ON M&A MENU
Korea National Oil Corp, sitting on a multimillion-dollar warchest, is setting its sights on Canada as the state-owned company aims to ramp up production and catch up to Asian rivals. [ID:nTOE60J04W]
Royal Dutch Shell (RDSa.L) is slowing its expansion into high-cost Canadian tar sands and will in future focus on exploration, rather than expensive, capital-intensive projects, Chief Executive Peter Voser said in a newspaper interview. [ID:nLDE60O0FP]
Following is a summary of research actions on Canadian companies reported by Reuters on Monday. [RCH/CA]
* RBC cuts AGF Management (AGFb.TO) to sector perform from outperform
* Macquarie raises Bank of Nova Scotia (BNS.TO) to neutral from underperform
* RBC raises CGI Group price target to C$17 from C$15; rating outperform
$1=$1.058 Canadian Reporting by Claire Sibonney; Editing by Chizu Nomiyama