TSX poised to slip with oil, U.S. shoppers

Fri Nov 28, 8:51 AM
TORONTO (Reuters) - The Toronto Stock Exchange's main index is seen falling along with the price of oil, and reinforced by a negative tone set in the U.S..
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(Reuters)

TORONTO (Reuters) - The Toronto Stock Exchange's main index is seen falling along with the price of oil, and reinforced by a negative tone set in the U.S..

Investors are looking for clues on how U.S. holiday sales are faring in a test of resilience of the U.S. economy.

Low volume may once again be a factor as U.S. stock markets are open half a day after being closed for the Thanksgiving holiday on Thursday.

The Toronto index rose for a fifth straight day on Thursday thanks to strength in energy and materials issues, raising hopes that the market is close to finding a bottom.

Here is some of the news that may affect the market.

OIL EDGES TOWARD $54 AHEAD OF OPEC

Oil headed toward $54 a barrel, drawing modest support from the possibility that OPEC ministers gathered in Cairo could decide on a third output cut to bolster the market.

CAMECO TEMPORARILY SUSPENDS UF6 PRODUCTION AT PORT HOPE

Cameco said it is suspending uranium hexafluoride (UF6) production at the company's Port Hope plant until the second half of 2009 because of a contract dispute with its sole supplier of hydrofluoric acid, a necessary material for the production of UF6. Less than 100 jobs will be affected, the company said.

CANADA FALL ECONOMIC/FISCAL UPDATE

The Canadian economy has slipped into recession and the federal coffers are on the verge of running dry for the first time in 13 years, the government said in a report that raised the prospect of an early election.

SHOPPERS ARRIVE EARLY FOR U.S. HOLIDAY SALES

The U.S. holiday shopping season began on Thanksgiving Day on Thursday with steep discounts at retailers on "Black Friday", testing the strength of consumer sentiment as the U.S. economy faces a financial crisis.

RESEARCH ROUNDUP: TELUS, BAYTEX

Following is a summary of research actions on Canadian companies.

* BMO cuts Telus target to C$46 from C$48; market perform

* CIBC cuts Baytex Energy Trust to sector performer from sector outperformer

($1=$1.24 Canadian)

(Reporting by Ka Yan Ng; Editing by Kenneth Barry)