May 11 (Reuters) - Toronto’s main stock index could open lower on Tuesday, snapping the previous session’s rally, on concerns that the euro zone’s mammoth $1 trillion rescue package was not a long-term solution to the region’s sovereign debt problems.
European shares fell, with banks among the biggest losers. In a sobering note, the IMF said even though Greece’s public debt was sustainable over the medium term, the nation faced plenty of risks.
Markets in Asia were also down after data showed Chinese inflation inched up to an 18-month high in April, raising concerns about potential monetary tightening. [ID:nLDE64A0I9]
Wall Street is also set for a lower start with the stock futures down more than a percent. [.N]
Energy stocks will be in the spotlight as U.S. lawmakers grill top executives on the drilling rig explosion and oil spill that threatens an environmental catastrophe in the Gulf of Mexico.
Here is some news that could affect stock prices:
Oil fell below $76 as euphoria over the euro zone’s $1 trillion rescue package faded, leaving doubts over the longer-term outlook for Europe’s economies and their future demand for fuel. [O/R]
Industrial metals fell broadly on doubts over a $1 trillion emergency rescue plan to stabilise the euro, and the longer-term demand outlook in Europe and China. [MET/L]
Gold hit five-month highs to within $10 of its December record peak as risk aversion returned on doubts over smaller euro zone countries’ ability to cut their deficits despite a $1 trillion aid package.[GOL/]
PETROBAKKEN‘S PROFIT RISES
PetroBakken Energy Ltd PBN.TO reported a surge in quarterly earnings that beat analysts’ estimates, as average production nearly doubled, boosted by its acquisition of TriStar Oil & Gas Ltd last year. [ID:nSGE64A0F7]
HEMISHERE GPS’ SURPRISE LOSS
Hemisphere GPS Inc HEM.TO, which makes GPS products for agriculture, marine and other markets, posted a surprise quarterly loss, hurt by weak demand in its key agriculture sector in various markets. [ID:nSGE64A0FW]
Power producer Boralex Inc (BLX.TO) posted an 82 percent fall in quarterly profit, partly hurt by lower electricity prices in the U.S. market. [ID:nSGE6490U8]
Rocky Mountain Dealerships Inc’s (RME.TO) first-quarter profit more than doubled, helped by strength in demand for new agricultural and construction equipment. [ID:nSGE64A0HZ]
Workers at newsprint maker AbitibiBowater ABWTQ.PK have ratified a new collective agreement that includes cost reductions for the company, but protects pensions for retirees and workers, the Communications, Energy and Paperworkers Union of Canada (CEP) said on Monday. [ID:nN10234245]
Copper and gold miner First Quantum Minerals (FM.TO) on Monday said its first-quarter profit soared on higher copper prices. [ID:nSGE6490VT]
Great Canadian Gaming Corp (GC.TO), an operator of casinos and thoroughbred racetracks, on Monday posted a quarterly profit compared with the year-ago period when it took a restructuring charge, but said many of its properties continue to be impacted by the challenging economy. [ID:nSGE6490UW]
Biopharmaceutical company Transition Therapeutics Inc TTH.TO TTHI.N posted a narrower quarterly loss on Monday, and said it has adequate financial resources for expected expenditures till the beginning of the first quarter of fiscal 2012. [ID:nSGE6490VM]
Paramount Energy Trust PMT_u.TO on Monday said its quarterly profit halved, hurt by a decrease in unrealized gains on financial instruments, and it remained cautious about near-term natural gas prices. [ID:nSGE6490UP]
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.
* Canfor Pulp Income Fund CFX_u.TO rating cut to outperform from strong buy at Raymond James
* Cinch Energy CNH.TO target price cut to $1.60 from $1.75; rating outperform at Raymond James
* Ensign Energy Services (ESI.TO) price target cut to $16.25 from $17.50; rating outperform at Raymond James
* Shawcor Ltd SCLa.TO price target cut to $43 from $45; rating overweight at Thomas Weisel
* Softchoice SO.TO price target raised to $11.50 from $9.50; rating outperform at Raymond James
* Trican Well Service (TCW.TO) rating raised to strong buy from outperform at Raymond James
* Uranium One UUU.TO price target cut to $3.50 from $3.70; rating outperform at Raymond James
$1=$1.023 Canadian Reporting by Bangalore newsroom, editing by Savio D'Souza and Jeffrey Hodgson