CANADA STOCKS-TSX may open higher after Spain austerity plan

Wed May 12, 2010 8:42am EDT
 
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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: Quote) 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]   Continued...