TORONTO, Nov 26 (Reuters) - The Toronto Stock Exchange’s main index .GSPTSE may open lower as gloomy corporate and economic outlooks weighed on investor sentiment, but a modest rise in the price of oil may help offset losses.
In Canada, the world’s largest leveraged buyout was in doubt, while another delay was announced on a restructuring plan for asset-backed commercial paper.
World stocks struggled as investors weighed stimulus packages from the European Union the day after the U.S. Federal Reserve announced its aid plans. China cut its interest rates by 108 basis points. Toyota had its top-notch credit ratings cut for the first time in a decade. [MKTS/GLOB]
After two days of big rises, the Toronto index ended virtually flat on Tuesday after swinging in a range of nearly 300 points from top to bottom in choppy activity.
Here is some of the news that may affect the market on Wednesday.
Canadian telecom giant BCE Inc (BCE.TO) said that its accounting firm had determined that the parent of Bell Canada would not meet solvency tests necessary to proceed with its C$34.8 billion proposed leveraged buyout. If KPMG does not deliver a “favorable opinion” on Dec. 11, “the transaction is unlikely to proceed”, BCE said. [ID:nN26331920]
Oil rose above $51 a barrel from a near 7 percent decline in the previous session, ahead of weekly U.S. oil stocks data that will help investors gauge the strength of demand in the world’s top energy consumer. [ID:nSP373462] Gold dipped as risk appetite firmed. [ID:nLQ439432]
Barack Obama will name former U.S. Federal Reserve Chairman Paul Volcker to chair an advisory panel to advise the U.S. president-elect on stabilizing financial markets and maneuvering the country out of a recession, sources said. Obama is due to make an “economic announcement” at 10:45 a.m. EST (1545 GMT) on Wednesday. [ID:nN26331992]
A Canadian committee that has been working for more than a year on a restructuring plan for billions of dollars worth of asset-backed commercial paper reported another delay, saying the plan would not be implemented this month as hoped. Instead of promising another completion date, the committee said it would try to wrap up the process “as soon as humanly possible.” [ID:nN25271027]
Following is a summary of research actions on Canadian companies reported by Reuters. For more, please double click [RCH/CA]
* Genuity, UBS cut Bank of Montreal (BMO.TO)
* UBS starts Eldorado Gold (ELD.TO) with buy rating
* RBC raises Alimentation Couche Tard (ATDb.TO)
$1=$1.24 Canadian Reporting by Ka Yan Ng