August 31, 2009 / 12:39 PM / in 8 years

CANADA STOCKS-Toronto index may fall as commodities sag

TORONTO, Aug 31 (Reuters) - Toronto’s main stock market index could open lower on Monday, pressured by weak commodity prices and as global equities dropped on persistent concerns about the pace of economic recovery.

Global stocks fell on Monday, dragged down by a six percent tumble in China, a recent barometer of economic health swaying other stock markets. [MKTS/GLOB] U.S. stock index futures pointed to a lower open. [ID:nN31427833]

On Friday, the S&P/TSX composite index .GSPTSE closed up 44.01 points, or 0.4 percent, at 10,977.97, as the index see-sawed but managed to eke out a gain on commodity strength.

Here is some news that could affect the market:

OIL DROPS

Oil fell more than 2 percent to around $71 a barrel on Monday as a drop in China’s key stock index stoked worries about the pace of economic recovery and a revival in energy demand. [ID:nSYD487149]

GOLD STEADY

Gold held near $955 an ounce, mirroring the largely rangebound dollar index, with softer oil prices reducing interest in the metal as an inflation hedge. [ID:nLV111673]

BASE METALS

Shanghai copper fell nearly 3 percent on Monday, retreating from a fresh 11-month high in early trade, as investors became cautious about the outlook for economic recovery, and sluggish demand weighed on the market. [ID:nSHA259266]

CANADA GDP DATA

Canada’s economy shrank at an annual rate of 3.4 percent in the second quarter, a slightly sharper contraction than expected following a 6.1 percent downturn in the first quarter. The economy eked out a 0.1percent monthly gain in June compared with May, marking the first tentative sign of economic recovery. [ID:nOTT001695]

CASCADES INC (CAS.TO)

Cascades completes acquisition of Atlantic Packaging’s tissue division and said the estimated value of the transaction is approximately $60 million. [ID:nWNAB5056]

CANADIAN RESEARCH

Blackmont raises Bank of Nova Scotia (BNS.TO) to outperform from sector perform, increases price target to C$50 from C$46.

RBC raises Toronto-Dominion Bank (TD.TO) to outperform from sector perform.

Raymond James starts Gildan Activewear GIL.N with outperform; price target of $25.

For more, please see: [ID:nBNG120922] [CA-RCH]

$1=$1.11 Canadian Reporting by Jennifer Kwan, Editing by Chizu Nomiyama

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