CANADA STOCKS-TSX may open higher on oil, global economy hopes

Mon Apr 6, 2009 7:50am EDT
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TORONTO, April 6 (Reuters) - Toronto's key stock index could open higher on Monday as a rise in oil prices may lend a boost to the resource-heavy index while renewed optimism over the recovery in the global economy could also lend support.

Canada is a key oil exporter, so hopes for a recovery in the global economy, which would ultimately mean more demand for oil, tends to bode well for the index since it has about a 22 percent weighting in energy stocks,

An agreement last week by G20 leaders on a $1.1 trillion deal to combat the global economic crisis has helped to boost expectations that the downturn in the global economy might not be as severe as anticipated.

Technology stocks will likely take their cue from the United States after news that IBM's (IBM.N: Quote) talks to acquire smaller computer and software rival Sun Microsystems Inc JAVA.O broke down on Sunday. [ID:nN05344764]

Canadian building permits data for February will arrive ahead of the market open while the Ivey Purchasing Managers Index for March will arrive shortly after the market open.

Neither report is expected to have a noticeable impact on stocks, especially with the more key domestic March jobs report due out on Friday.

The S&P/TSX composite index .GSPTSE fell 7.38 points to 9,065.76 on Friday but recorded its fourth-straight weekly gain and remained close to three-month highs.

Here is some of the news that may affect the index: