January 26, 2010 / 1:25 PM / in 8 years

CANADA STOCKS-TSX may open lower as China fears hit commods

TORONTO, Jan 26 (Reuters) - Toronto’s main stock index could open lower on Tuesday, with a drop in oil and metal prices weighing on producers, as China’s clampdown on lending hit investor confidence.

Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE could follow U.S. futures and world markets down. Investors were also worried after Standard & Poor’s cut its rating outlook on Japan. [.N] [MKTS/GLOB]

Canadian stocks ended little changed on Monday as beaten-down financial and energy shares found investor interest, but falling gold prices limited gains.

Here is some of the news that may affect the market:

CHINA TIGHTENING

Fears of more Chinese policy tightening spooked global markets after Beijing ordered banks to comply immediately with a planned increase in reserves and a report suggested earlier attempts at curbing lending had failed. For details, see [ID:nLDE60P13L]

OIL DROPS

Oil fell toward $74 a barrel after the Chinese move, which analysts said was a setback for the bullish view in oil markets that puts the prospect of rising Asian demand ahead of the market’s weak current fundamentals. [O/R]

GOLD SLIPS

Gold prices slipped in Europe with the dollar’s rise versus the euro, with higher-yielding and commodity-related currencies sensitive to any hints that China may be putting the brakes on its economy. [GOL/]

COPPER FALLS

Copper dropped about 1.5 percent, with dealers citing dollar strength and concerns that China’s clampdown could curb metals demand from the world’s top consumer. [MET/L]

S&P THREATENS JAPAN

Standard and Poor’s threatened to cut Japan’s credit rating unless it produced a credible plan to rein in its soaring debt and lift growth in an economy plagued by persistent deflation. [ID:nSGE60P08I]

INDIGO PROFIT UP

Canada’s biggest book retailer Indigo Books & Music Inc IDG.TO posted a 29 percent rise in quarterly profit, helped by higher sales. [ID:nSGE60O0MZ]

QUAD/GRAPHICS TO BUY WORLD COLOR PRESS

U.S. commercial printing company Quad/Graphics Inc agreed to buy rival World Color Press Inc WC.TO. [ID:nSGE60P0AD]

APPLE SHINES

Apple Inc (AAPL.O) posted better-than-expected Mac sales, but shipments of iPhone came in just below Wall Street’s heightened expectations. The iPhone competes with Research in Motion Ltd’s RIM.TO BlackBerry.

CANADA‘S RESEARCH ROUNDUP

Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. [RCH/CA]

* UBS raises Rona Inc RON.TO price target to C$18 from C$17; keeps “neutral” rating

* MacQuarie raises Semafo Inc (SMF.TO) target price to C$7 from C$4.75; keeps “outperform” rating

* RBC raises Indigo price target to C$19 from C$17; rated “outperform”

* RBC raises Kingsway Financial Services Inc (KFS.TO) price target to $1.50 from $1; rated “underperform” ($1=$1.06 Canadian) (Reporting by Claire Sibonney; editing by Jeffrey Benkoe)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below