CANADA STOCKS-TSX may rise on resources, rosy global outlook
TORONTO, June 10 (Reuters) - Toronto's main stock market index could open higher on Wednesday on rising commodity prices, as signs of an economic recovery in China prompt expectations of rising demand for natural resources.
Canada's influential energy group is expected to be in the spotlight during the session as the price for U.S. crude oil rose to its highest level in the past seven months.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE index finished a lackluster session with a flat close at 10,547.86 on Tuesday as concerns about the U.S. economy hit bank shares, but energy stocks rose on higher oil prices.
Here is some news that could affect the market:
OIL TOPS $71 AFTER LARGE DROP IN U.S. CRUDE STOCKS
Oil topped $71 a barrel on Wednesday for the first time in seven months on signs demand for crude could be recovering, with U.S. crude stocks falling last week and the Department of Energy raising its forecast for global demand. [nSP430902]
GOLD RISES ABOVE $960/OZ AS DOLLAR WILTS
Gold rose back above $960 in Europe on Wednesday as fresh dollar weakness prompted buying of the precious metal as a currency hedge and as oil prices rose to a new seven-month high.[nLA1025125]
DOLLAR FALLS VS HIGH YIELDERS, RISK DEMAND RISES
The dollar fell against higher-yielding currencies on Wednesday, prodded lower by a retreat in risk aversion as global stock prices were lifted by investor optimism about an improvement in the global economy. [nLA640240]
CHINA DATA POINTING TO RECOVERY; DEFLATION EASES
Chinese consumer prices fell in the year to May for the fourth month in a row, but at a slightly more moderate pace, while newspapers reported Beijing was poised to announce the strongest growth in industrial production since last September, well ahead of market forecasts. [nSP486673]
FORZANI GROUP NARROWS QUARTERLY LOSS
Forzani Group Ltd (FGL.TO) narrowed its quarterly loss and topped per share expectations as Canada's biggest sporting goods retailer coped with weak consumer confidence in a quarter usually considered the weakest for a retailer. [nN10235792]
LABOR TALKS STALLED AT VALE CANADA NICKEL MINE
Labor negotiations at Vale's (VALE5.SA) Voisey's Bay nickel and copper mine in Eastern Canada appear to be making little progress, despite three months having passed since the contract expired, officials on both sides agreed on Tuesday. [nN09403079]
RESEARCH ROUND-UP
Following is a summary of research actions on Canadian companies reported by Reuters on Wednesday. For more, see [RCH/CA]
*Desjardins raises Teck Resources (TCKb.TO) price target to C$28.80 from C$19.10; Rating Buy
*UBS raises Biovail Corp (BVF.N) price target to $15 from $14; Rating Buy
*RBC raises Lululemon Athletica (LULU.O) price target to $17 from $9; Rating Outperform ($1=$1.10 Canadian) (Reporting by Scott Anderson, Editing by Chizu Nomiyama)
