CANADA STOCKS-Toronto index may rise on hope, oil may offset

Mon May 4, 2009 8:30am EDT
 
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TORONTO May 4 (Reuters) - Toronto's main stock index may edge higher at the open on Monday on rising confidence in a global economic recovery, but a slipping oil price may hamper gains.

The TSX, as it often does, could also feed off sentiment in the United States, where U.S. stock index futures were pointing to a higher open. [ID:nN04380579]

Overnight, Asian stocks punched to a seven-month high, fuelled by confidence the global economy is recovering faster than expected. [ID:MKTS/GLOB]

The S&P/TSX composite index .GSPTSE unofficially closed up 1.9 percent, or 172.13 points, at 9,496.96 on Friday. The TSX slipped 0.5 percent last week, following seven straight weeks of gains that have carried it up more than 25 percent since early March.

Here are some of the factors that may affect the market.

OIL

Oil CLc1 dipped below $53 a barrel, unravelling early gains, as nervousness that the strength implied by stock markets might be premature offset the impact of positive economic data on big fuel consumers China and India. [ID:nSP468176]

GOLD

The precious metal firmed more than $5 on a weaker U.S. dollar and light Chinese buying, but rising stock markets could curb gains. [ID:nSP496807]   Continued...