TORONTO, Feb 12 (Reuters) - Toronto’s main stock index may open lower on Friday as China’s surprise move to increase bank reserve requirements could raise worries about the impact of monetary tightening on global growth.
Weak gold and oil prices could also weigh on the resource-heavy market.
Toronto’s main stock index touched its highest level in a week on Thursday as a European Union rescue plan for debt-laden Greece helped lift market confidence and commodity prices.[ID:nN11114958]
Here is some of the news that may affect the market.
Gold fell 1.5 percent to below $1,080 an ounce on Friday as the dollar hit a seven-month high versus a basket of currencies after China unveiled a surprise hike in commercial banks’ reserve requirements.[ID:nLDE61B0UQ]
Oil fell by more than $1 to below $74 a barrel on Friday after the outlook for energy demand was dented by China’s surprise decision to tighten monetary policy for the second time this year.[ID:nSGE61B05P]
China sprung a surprise on global markets on the eve of its New Year’s holiday with an increase in banks’ reserve requirements, a move that can slow bank lending and tamp down rising inflation. [ID:nTOE61B069]
Niko Resources Ltd (NKO.TO) posted a quarterly profit on continued production ramp-up at its major properties in India and lower costs. [ID:nSGE61B0AF]
Cenovus Energy Inc (CVE.TO), the oil sands and refining spinoff of EnCana Corp (ECA.TO), expects steady growth from its northern Alberta holdings as it expands existing sites and looks to greenfield projects, Chief Executive Brian Ferguson said on Thursday.[ID:nN11134373]
Precision Drilling Trust PD_u.TO, Canada’s No.1 oilwell-drilling company, swung to a quarterly loss, stung by charges. Separately, the company said it intends to convert to a corporation. It expects to complete the conversion by May 31. [ID:nSGE61B0BA]
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]
* RBC cuts Sun Life Financial (SLF.TO) price target to C$37 from C$38; Rating outperform
* RBC cuts Manulife Financial (MFC.TO) to Sector Perform from Outperform
* UBS cuts Shoppers Drug Mart Corp SC.TO price target to C$49 from C$50; Rating Buy
* UBS cuts Canadian Tire Corp (CTCa.TO) price target to C$62 from C$67; Rating Buy ($1=$1.05 Canadian) (Reporting by Scott Anderson; Editing by Theodore d‘Afflisio)