News from Reuters

TSX may open higher as commodities recover

09/07/09

TORONTO (Reuters) - Toronto's main stock market index looked set to open higher on Thursday, as commodity prices recovered after a three day beating.

Better-than-expected quarterly results from U.S. bellwether Alcoa helped lift European stocks and draw global equities out of the red, while currency markets reversed some of their recent cautious patterns.

U.S. stock index futures also pointed to a higher open on Thursday after Alcoa results gave a positive tone to the start of the second-quarter earnings season.

On Wednesday the S&P/TSX composite index <.GSPTSE> closed down 190.90 points, or 1.94 percent, at 9,653.45.

Here is some news that could affect the market:

KINROSS GOLD

Kinross Gold Corp said unionized employees strike at Mantos De Oro-La Coipa Mine in Chile, which affects production of about 300 gold equivalent ounces per day.

MANULIFE

Canada's top life insurer, Manulife Financial Corp, plans to keep building capital to shield it from volatile markets, and could use those reserves for expansion or acquisitions down the road.

AIR CANADA

Air Canada is finding some support from lenders as it struggles to solve its financial Rubik's Cube, the cash-strapped airline's chief executive said on Wednesday.

RESEARCH IN MOTION

Canaccord Adams upgraded Research in Motion to "buy" from "hold," citing the recent slump in the smartphone maker's stock price and a double digit growth in its BlackBerry sales for June.

OIL RAISES

Oil rose by more than $1 on Thursday to edge back above $61 a barrel, halting a six-session losing streak which has seen prices decline by 15 percent on concerns about the timing of any economic recovery.

GOLD, BASE METALS

Gold rebounded in Europe on Thursday from the last session's eight-week low, as the weak dollar prompted buying of the metal as a currency hedge. Base metals were also higher.

QUEBEC

The French-speaking province of Quebec will challenge the federal government in court over plans to create a national securities regulator, accusing the federal government of trampling on provincial powers.

G8

The G8 climate pact meshes well with Canada's plans to reduce its emissions by up to 70 percent by 2050, Canadian Environment Minister Jim Prentice said on Thursday.

CANADA RESEARCH

* Macquarie starts Semafo Inc with outperform rating; target price of C$3.

* RBC cuts Canadian Pacific Railway price target to C$35 from C$38; rating sector perform.

* Genuity starts Saputo Inc with buy rating, price target of C$28.

($1=$1.16 Canadian)

(Reporting by Nina Lex; Editing by Jeffrey Hodgson)

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