TORONTO, Jan 27 (Reuters) - Toronto’s main stock market index could open lower on Tuesday as weak oil and gold prices weigh on the resource-heavy market.
Investors could take a cautious stance ahead of the release of Canada’s budget after the markets close.
Canada’s minority Conservative government will present a budget to deal with the effects of the global economic crisis. [ID:nN23482302]
Presenting its action plan in the Speech from the Throne, formally starting a new session of Parliament on Monday, the government said its economic stimulus plan would promote long-term growth while avoiding a return to permanent deficits.
The government has also said the budget will contain C$7 billion in infrastructure funds for the next two years, contribute C$2 billion in social housing spending, while C$1 billion is earmarked to help single-industry towns.
The budget will project a deficit of C$64 billion over the next two years.
Toronto’s main stock index .GSPTSE rebounded on Monday as a rally in the financial and energy sectors offset pressure from the materials group. [ID:nN26405950]
Here is some of the news that may affect the index:
Oil prices fell toward $45 a barrel on Tuesday as the market began to anticipate data showing rising fuel inventories that reflect economic slowdown. [ID:nSP178421]
Gold slipped more than 1 percent in Europe on Tuesday as investors took profits after the last session’s gains, with a firmer euro versus the dollar and an uptick in equity markets suggesting risk aversion is easing. [ID:nLR113581]
Canadian Pacific Railway Ltd CP.TO reported better-than-expected fourth-quarter earnings, buoyed by higher freight volumes and a stronger dollar. [ID:nBNG163181]
A U.S. judge ruled on Monday that Barrick Gold Corp ABX.TO can proceed with development of its Cortez Hills gold project in northeast Nevada, despite opposition from local indigenous leaders and environmental groups. [ID:nN26339693]
Canada’s plans to aid its struggling forest industry could violate its lumber trade agreement with the United States, a U.S. lumber producers’ organization warned on Monday. [ID:nN26402224]
Tembec Inc TMB.TO will idle a Canadian pulp mill and three pulp operations in France in the face of slowing demand, the company said on Monday. [ID:nN26303250]
Following is a summary of research on Canadian companies. For more, please see [RCH/CA] [ID:nBNG384377]
*RAYMOND JAMES CUTS TARGETS ON SEVERAL PAPER & FOREST PRODUCTS COS [ID:nWNAB3820]
*RBC CUTS ING CANADA INC IIC.TO PRICE TARGET TO C$40 FROM C$42; RATING OUTPERFORM
*RBC RAISES NOVA CHEMICALS NCX.N TO SECTOR PERFORM FROM UNDERPERFORM
*RBC RAISES METRO INC MRUa.TO TO OUTPERFORM FROM SECTOR PERFORM
*RBC RAISES GEORGE WESTON LTD WN.TO TO OUTPERFORM FROM SECTOR PERFORM
*RBC CUTS CANADIAN TIRE CTC.TO TO SECTOR PERFORM FROM OUTPERFORM ($1=$1.23 Canadian) (Reporting by Scott Anderson; Editing by Tom Hals)