CANADA STOCKS-TSX may open higher, buoyed by commodity prices

Wed Oct 20, 2010 8:43am EDT
 
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Oct 20 (Reuters) - Toronto's resource heavy main stock index looked set to open higher on Wednesday as commodity prices rebounded from China's surprise rate hike earlier this week, supported by a softer U.S. dollar.

FACTORS TO WATCH

* Canadian equity futures <0#SXF:> pointed to a higher open.

* U.S. stock index futures rose as dissipating fears over an interest rate hike in China weighed down the U.S. dollar and lifted global equities. [.N]

* European shares rose by midday on Wednesday as miners rebounded on a weak dollar and banks rose ahead of results from U.S. peer Morgan Stanley, while Novo Nordisk gained after a setback for its rivals. [.EU]

* Asian stocks pared early losses as markets recovered from an initial shock to China's first rate rise in nearly three years that had investors fretting it may be embarking on a policy tightening cycle.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.69 percent in early trade. Commodities are generally priced in U.S. dollars and broader weakness in the currency tends to help send prices higher.

* Oil rose above $80 a barrel, supported by a weaker dollar, signs that U.S. fuel stockpiles are falling and as investors reassessed a surprise interest rate rise in the world's second-largest consumer China. [O/R]   Continued...