May 10, 2010 / 12:51 PM / 7 years ago

CANADA STOCKS-TSX set to open higher on EU rescue deal

5 Min Read

May 10 (Reuters) - Toronto's main stock index looked set to open much higher on Monday after global policymakers came up with an emergency rescue package worth around $1 trillion aimed at preventing Greece's debt crisis from spreading through the euro zone. [ID:nSGE6490HH]

European and Asian shares rallied on the news. Wall Street is also set for a strong rebound with stock futures up about 4 percent. [.N]

The Bank of Canada announced on Sunday it would re-establish a US$30 billion currency swap agreement with the U.S. Federal Reserve in response to liquidity pressures in European markets. [ID:nN0949279]

Here is some news that could affect stock prices:

Oil Up

U.S. oil prices rallied more than $3 per barrel to above $78 after policymakers agreed a $1 trillion rescue package to stabilise world financial markets and try to resolve the euro zone debt crisis. [O/R]

Metals Rise

Industrial metals bounced taking heart from news of a $1 trillion emergency package to stabilise markets and resolve the Greek debt crisis that has threatened to sink the euro. [MET/L]


Gold arrested a slide that knocked it nearly 2 percent down on Monday as investors feared a $1 trillion emergency package to prevent a sovereign debt crisis spreading through the euro zone may ultimately spark inflation. [GOL/]

C$ Rises vs Us$

The Canadian dollar jumped more than 2 percent against the U.S. dollar on Monday as market confidence was renewed after policymakers agreed to an emergency aid package to stabilize European sovereign debt issues. [CAD/]

General Growth Gets Ok on Brookfield, Simon Walks

Simon Property Group (SPG.N) walked away from its $6.5 billion bid for General Growth Properties Inc (GGP.N) and said it will not return to the table after its bitter mall rival chose a competing offer led by Brookfield Asset Management Inc (BAMa.TO) as the starting bid in a bankruptcy auction. [ID:nN07122004]

Ensign Energy Profit Falls

Oilfield services provider Ensign Energy Services Inc (ESI.TO) posted a lower-than-expected fall in first-quarter earnings on Monday, hurt by lower pricing and a fall in revenue from its U.S. and international operations. [ID:nSGE6490NT]

Worldcolor Loss Narrows

Worldcolor WC.TO, formerly known as Quebecor World, reported a smaller first-quarter loss on Monday helped by a massive restructuring plan and other cost-containment initiatives. [ID:nN10201489]

Uranium One Posts Loss

Uranium One UUU.TO, whose main operations are in Kazakhstan, reported a first-quarter net loss on Monday, citing falling revenues and higher operating expenses. [ID:nN10178120]

Epsilon Energy Posts Profit

Epsilon Energy Ltd (EPS.TO) posted a quarterly profit, partly helped by higher revenue and said it expected to continue to be profitable in 2010, and named a new finance chief. [ID:nSGE6490PR]

Shawcor Profit Slides

Energy services company ShawCor Ltd SCLa.TO on Friday posted a nearly 70 percent fall in quarterly profit, hit by weak market conditions in its pipeline and pipe services segment. [ID:nSGE6460L1]

Transglobe Apartment Ipo

TransGlobe Apartment Real Estate Investment Fund on Friday said it expected to raise gross proceeds of about C$247.3 million from its initial public offering of 24.7 million trust units priced at C$10 a unit. [ID:nSGE6460L6]

Research Roundup

Following is a summary of research actions on Canadian companies reported by Reuters on Monday. [RCH/CA]

Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.

* Canadian REIT REF_u.TO rating raised to outperform from market perform at Raymond James

* Crescent Point Energy (CPG.TO) price target raised to $48 from $46; rating outperform at Raymond James

* Denison Mines (DML.TO) price target cut to $2.30 from $2.50; rating strong buy at Raymond James

* DragonWave DWI.TO price target cut to $7.50 from $10.50; rating market perform at Raymond James

* Enerplus Resources ERF_u.TO price target raised to $25.50 from $25; rating outperform at Raymond James

* IBI Income Fund IBG_u.TO price target cut to $15 from $16; rating market perform at Raymond James

* Wajax Income WJX_u.TO price target cut to $23.75 from $28; keeps market perform rating at Raymond James

$1=$1.02 Canadian Reporting by Bangalore newsroom, editing by Savio D'Souza and Jeffrey Hodgson

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