TORONTO, Sept 29 (Reuters) - Toronto’s main stock index could be set for a softer open on Tuesday as weak oil and base metals prices weigh on the resource-heavy index.
World stocks steadied on Tuesday as weaker oil prices and caution following a recent rally prompted investors to lock in gains and stay on the sidelines [MKTS/GLOB]. U.S. stock index futures, however, edged lower ahead of data on home prices and consumer confidence. [.N]
On Monday, the S&P/TSX composite index .GSPTSE ended the day with a gain of 126.33 points, or 1.13 percent, at 11,338.72. With Monday’s rise, the TSX is now up 51 percent from March’s five-year low.
Here is some news that could affect the market:
BANK OF CANADA
Bank of Canada Governor Mark Carney renewed a warning on Monday about persistent strength in the Canadian dollar and its possible effects on returning inflation to the Bank of Canada’s target range. [ID:nN28514256]
OPEL STATE AID
The European Union antitrust chief on Tuesday urged EU countries with Opel plants to present details of their proposed state aid for the carmaker to the European Commission as soon as possible. [ID:nLT544267]
Oil dipped towards $66.50 a barrel on Tuesday as a weak demand outlook was expected to be reinforced by weekly inventory data from the United States. [ID:nSP542839]
Gold firmed on Tuesday as the market attempted to consolidate recent bouts of speculative selling, but gains were limited as the dollar maintained its edge over the euro, leaving the metal exposed to further falls. [ID:nLT514154]
NATIONAL BANK OF CANADA GOLD OUTLOOK
Rebounding stock markets and signs of economic growth mean the time may have come to abandon gold, among the strongest assets during the recent recession, National Bank of Canada (NA.TO) said on Monday. [ID:nN2894225]
BASE METALS SOFT
Copper drifted lower on Tuesday as buying waned in China, the world’s top consumer of the metal, and as trade quietened ahead of Chinese National Day and Autumn Festival holidays. [ID:nLT640285]
Canada’s minority Conservative government gained the temporary support of an opposition party on Monday and is poised to survive a non-confidence motion in Parliament later this week. [ID:nN2889888]
Blackmont Capital starts coverage of five intermediate oil and gas producers including Birchcliff Energy (BIR.TO) and Fairborne Energy Trust FEL.TO. [ID:nWNAB3950]
Barclays raises Nexen Inc NXY.TO price target to C$24 from C$23; rating equal-weight.
UBS cuts Centerra Gold (CG.TO) price target to C$9 from C$9.25; rating buy.
RBC raises Blackpearl Resources (PXX.TO) to outperform from sector perform.
For more research, please see: [CA-RCH]
($1=$1.09 Canadian) (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)