May 12, 2010 / 12:44 PM / 7 years ago

CANADA STOCKS-TSX may open higher after Spain austerity plan

7 Min Read

May 12 (Reuters) - Toronto's main stock index could open higher on Wednesday after Spain unveiled tough austerity measures that eased fears on how euro zone countries will cut budget deficits.

Spain's prime minister said Madrid would slash civil service pay by 5 percent this year, freeze it in 2011 and axe 13,000 public sector jobs this year in a drive to meet European Union deficit targets. [ID:nLDE64B0SK]

European markets also rebounded on strong quarterly results from banks, supported by better-than-expected German GDP data. Asian equities were mixed.

U.S. stocks are set for a higher open ahead of Cisco's (CSCO.O) quarterly result that is expected to be better than a year earlier. [.N]

Here is some news that could affect stock prices:

Oil Drops

Oil fell towards $76 a barrel after the International Energy Agency (IEA) trimmed its 2010 oil demand forecast and as investors awaited U.S. inventory data expected to show rising supplies.[O/R]

Metals Rise

Industrial metals rose, with copper edging up as the euro firmed versus the dollar, but market sentiment was jittery as mounting debt problems in the euro zone continued to worry inventors. [MET/L]

Gold Hits Record Highs

Gold surged to a record high as investors piled in, seeking safety from turmoil in government bond markets and the risks of Greece's debt crisis spreading to other countries. [GOL/]

Talisman Production View

Talisman Energy Inc TLM.TO, Canada's No.4 independent oil and gas explorer, said on Wednesday that it expects production growth of 5 percent to 10 percent in 2011. [ID:nSGE64B0G6]

Quebecor Operating Profit Up

Quebecor Inc (QBRa.TO)(QBRb.TO) reported a 9 percent rise in first-quarter operating earnings on Wednesday, driven by growth in its telecommunications segment and cost-cutting measures in its news media business. [ID:nN12166036]

Aeterna Zentaris Gets Fda Nod

Drugmaker Aeterna Zentaris AEZ.TO said on Wednesday that it expects to begin a key mid-stage trial for its bladder cancer treatment later this year after U.S. regulators approved the company's investigational new drug application. [ID:nN12266035]

Sobeys Opens Discount Chain

Canada's No. 2 grocer Empire Co (EMPa.TO) said on Wednesday that its Sobeys Inc division planned to open a new chain of discount food stores in the Toronto area as it ramps up the discount food fight in the area. [ID:nN12167281]

Timminco Loss Narrows

Timminco Ltd TIM.TO reported a slimmer quarterly loss on Tuesday due to strong demand from the chemical and aluminium industries for silicon metal products. [ID:nN11114750]

Sino-Forest Profit Rises

Sino-Forest Corp TRE.TO, which owns and manages forest plantations in China, on Wednesday posted first-quarter earnings that topped market estimates on strong demand for wood fiber. [ID:nSGE64B0G2]

Jaguar Mining Posts Loss

Gold producer Jaguar Mining Inc (JAG.TO) posted a first-quarter loss on Tuesday, hurt by higher costs, lower grades at its Turmalina operation and the strengthening of the Brazilian real. [ID:nSGE64A0M6]

Caspian Energy's Going Concern Doubts

Caspian Energy Inc CEK.TO reported a first-quarter loss on Tuesday and said its ability to continue as a going concern is in substantial doubt and is dependent on negotiations taking place with Asiastar Petroleum Ltd. [ID:nWNAB9350]

Bioniche Posts Profit

Biopharmaceutical company Bioniche Life Sciences Inc BNC.TO posted a quarterly profit on Wednesday, partly helped by licensing revenue from its U.S. pharmaceutical partner. [ID:nSGE64B0GR]

tso3 Loss Widens

TSO3 Inc TOS.TO, which designs sterilization technology for medical devices, on Wednesday reported a slightly wider quarterly loss, as sales of its sterilizers fell sharply. [ID:nSGE64B0FC]

Fortress Paper Profit Drops

Fortress Paper Ltd (FTP.TO) posted a 95 percent drop in quarterly profit on Tuesday hurt by a foreign exchange loss. [ID:nSGE64A0LY]

Research Roundup

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.

* Canadian banks sector raised to positive from neutral at Barclays [ID:nWNAB9504]

* B2Gold Corp (BTO.TO) price target raised to $2 from $1.80; rating outperform at Raymond James

* Bank of Montreal (BMO.TO) rating raised to overweight from equal-weight at Barclays

* Bank of Nova Scotia (BNS.TO) price target raised to $53 from $45; rating underweight at Barclays

* Baytex Energy Trust BTE_u.TO price target raised to $36.50 from $36; rating outperform at Raymond James

* CIBC (CM.TO) price target raised to $78 from $64; rating equal-weight at Barclays

* Crew Energy CR.TO price target raised to $18.25 from $17.50; rating market perform at Raymond James

* Crombie REIT (CRR_u.TO) price target cut to $11 from $11.50; rating market perform at Raymond James

* Fortress Paper (FTP.TO) price target raised to $35 from $30; rating strong buy at Raymond James

* Legacy Oil Plus Gas LEG.TO price target raised to $15.50 from $15; rating strong buy at Raymond James

* Norbord Inc NBD.TO rating cut to sell from neutral at Goldman Sachs

* Omni-Lite Industries Canada OML.V rating raised to strong buy from outperform at Raymond James

* RBC (RY.TO) rating raised to equal-weight from underweight at Barclays

* Rock Energy RE.TO price target raised to $6.50 from $5.50; rating overweight at Thomas Weisel

* Semafo Inc (SMF.TO) price target raised to $8 from $6.25; rating overweight at Thomas Weisel

* TD Bank (TD.TO) price target raised to $83 from $73; rating overweight at Barclays

* Trican Well Service (TCW.TO) rating raised to overweight from market weight at Thomas Weisel

* Twin Butte Energy TBE.TO rating raised to outperform from market perform at Raymond James

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

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