TORONTO, Sept 28 (Reuters) - Toronto’s main stock market could open lower on Monday as falling oil prices weigh on the resource-heavy market and investors wait for the Canadian government to release its quarterly economic report card.
But steady gold prices and an increase in global merger and acquisition activity, which has boosted investor sentiment, could offset some of the weakness.
Toronto’s main stock index dropped on Friday, finishing the week 2 percent lower, after investors punished Research In Motion RIM.TO for an outlook that raised concerns about the BlackBerry maker’s growth prospects.
Here is some of the news that could affect the market:
Oil fell below $66 a barrel on Monday, extending last week’s 8.4 percent drop, as investors focused on high inventories and sluggish demand, shrugging off tension between Iran and the West. [O/R]
Gold was steady on Monday after briefly falling below $990 an ounce, as the euro trimmed some losses versus the dollar, but bullion looked vulnerable to a long liquidation after it failed to stay above $1,000 an ounce. [GOL/]
Canada’s minority Conservative government is set for a showdown with the opposition Liberal Party on Thursday that could send the country back to the polls for the fourth time in just over five years. [nN27543131]
Bombardier Transportation, the Berlin-based unit of Bombardier Inc (BBDb.TO), said its Chinese joint venture received a contract worth $4 billion from the Chinese Ministry of Railways to supply 80 high-speed trains. [nBNG449807]
Switzerland’s Lonza LONN.VX and Canadian drugmaker Patheon PTI.TO have extended an exclusivity and due diligence period for the Swiss group’s takeover bid, the companies said on Monday. [nLS175001]
Sprott SCP.TO announced an agreement to acquire outstanding shares of Auriga Energy Inc. [ID:nWNAB3730]
Xerox Corp (XRX.N) will buy Affiliated Computer Services Inc (ACS.N) for $6.4 billion in a cash and stock deal that expands the copier company into technology outsourcing and data management. For details see [nN2863430]
* BMO raises Canadian Tire Corp (CTCa.TO) price target to C$55 from C$54; Rating Market Perform
* Scotia cuts Research In Motion RIM.TO price target to C$103 from C$109; Rating Sector Outperform
* RBC raises Corus Entertainment (CJRb.TO) price target to C$21 FROM C$19; Rating Outperform
For more research, please see [CA-RCH] ($1=$1.09 Canadian) (Reporting by Scott Anderson; Editing by Jeffrey Hodgson)