CANADA STOCKS-TSX may open higher on resources, banks

Wed May 20, 2009 8:27am EDT
 
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TORONTO May 20 (Reuters) - Toronto's main stock market index could open higher on Wednesday as rising oil and gold prices provide a boost to the resource-heavy market.

The heavily weighted financial issues could also see activity after Bank of America Corp (BAC.N: Quote) raised $13.47 billion as it sought to meet government requirements for capital raising following the results of a stress test on U.S. banks. [nN19416813]

Meanwhile, investors will also take time to digest the latest Canadian economic data that showed the country's annual inflation rate in April dropped to a 14-year low of 0.4 percent from 1.2 percent in March on lower energy prices. [nN20487391]

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rallied sharply on Tuesday, rising 3.5 percent to 10,100.95 and reclaiming most of last week's losses, as higher oil prices boosted energy issues and the TSX caught up with a rise by U.S. stocks on Monday when the Toronto market was closed.

Here are some of the stories that may affect the market:

OIL FIRMS ABOVE $60 ON US REFINERY FIRES, NIGERIA

Oil prices firmed above $60 a barrel on Wednesday to touch a new six-month high on bullish inventory data and refinery accidents in the United States, in spite of weak market fundamentals. [nSIN233823]

GOLD FIRMER AS DOLLAR SLIPS, OIL CLIMBS

Gold rose in Europe on Wednesday, supported by a weaker dollar and firmer oil prices, with a report showing a jump in first-quarter gold demand also supporting appetite for bullion. [nLK309625]   Continued...