CANADA STOCKS-TSX may rise at open on commodity price gain, M&A

Mon Apr 4, 2011 8:47am EDT
 
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April 4 (Reuters) - Toronto's resource-heavy main stock index looked set to open higher on Monday, extending gains from the previous session, helped by higher commodity prices and the impact of recent takeover bids on investor sentiment.

Toronto-listed shares of Equinox Minerals EQN.TO were set to jump after Minmetals Resources (1208.HK: Quote), China's biggest metals trading firm, offered $6.5 billion to buy the company. [ID:nL3E7F30DI]

New Gold (NGD.TO: Quote), an intermediate gold producer with mines in Mexico, Australia and the United States, also said on Monday it agreed to acquire Richfield Ventures RVC.V in an all stock deal valued at C$550 million ($573 million)

FACTORS TO WATCH

* Canadian equity futures <0#SXF:> pointed to a higher open.

* U.S. stock index futures edged higher on Monday, with the S&P 500 facing a level where selling has clustered in recent sessions. [.N]

* European shares edged up to a three-week high, with telecoms heavyweight Vodafone rising after a major disposal, though strategists said an expected euro zone interest rate rise could cap further gains in the months ahead. [.EU]

* Asian shares climbed to their highest in nearly 3 years but the Nikkei struggled to extend gains as uncertainty over Japan's economic outlook and a prolonged nuclear safety crisis curbed enthusiasm.

COMMODITY PRICE MOVES   Continued...