CANADA STOCKS-TSX set to open up on ECB loan boost

Wed Feb 29, 2012 8:25am EST
 
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Feb 29 (Reuters) - Toronto's main stock index was set to edge higher at the open on Wednesday after European banks absorbed more than half a trillion euros as part of a European Central Bank effort to stabilize the euro zone's financial system.

Banks grabbed 530 billion euros at the central bank's second offering of cheap three-year funds, fuelling expectations that credit will flow to businesses and borrowing costs will ease for governments hit by the euro zone crisis.

FACTORS TO WATCH

* Canadian equity futures pointed to a higher open.

* The Canadian dollar surged to its strongest level in more than 5 months against the U.S. dollar after a robust uptake of the ECB's latest offer of cheap loans buoyed riskier assets.

* U.S. stock index futures edged up after the ECB operation.

* The euro dipped to a session low against the dollar in volatile trade while European stocks gained and German Bunds fell after the ECB move.

COMMODITY PRICE MOVES   Continued...