May 27, 2009 / 12:10 PM / 8 years ago

CANADA STOCKS-Toronto index may head up on oil, recovery hopes

TORONTO, May 27 (Reuters) - Toronto’s main stock index may rise on Wednesday as higher oil prices and continued optimism about the world economy could help the index extend its three-day gain.

Economic data, action by central banks around the world to inject liquidity and massive government stimulus packages are boosting hopes that the global economy is gradually recovering from recession. World stocks held a positive tone and Wall Street pointed to a higher start. [MKTS/GLOB]

On Tuesday, the S&P/TSX composite index .GSPTSE finished up 216.40 points, or 2.15 percent, at 10,285.90, as stronger financial stocks vaulted the index to its highest close since early October.

Here is some of the news that may affect the market.

QUARTERLY BANK RESULTS

Big bank earnings continue to be the focus this week after Bank of Montreal (BMO.TO) posted a stronger-than-expected quarterly profit on Tuesday. The results sent the TSX’s heavily-weighted financial group higher as investors bet that other big lenders reporting this week will also post profits. [ID:nN26473895] Regional bank Laurentian Bank of Canada (LB.TO) is due to report results on Wednesday.

* UBS raises BMO price target [ID:nWNAB3663]

OIL

Oil rose to a six-month high above $63 a barrel on Wednesday after OPEC’s biggest member Saudi Arabia said the global economy had strengthened enough to cope with oil at $75-$80 a barrel. [ID:nSYD212068]

* OPEC poised to hold output steady, aims for $75 oil [ID:nLR175622]

METALS

Gold slipped below $950 as firm stock markets continued to dull some of bullion’s appeal, although traders were keeping a cautious eye on the fate of General Motors Corp (GM.N), for its impact on equities. [ID:nSP229870]

* Copper hit a near three-week high. [ID:nLR626038]

* INTERVIEW-Exploration squeeze to help lift metal prices-E&Y [ID:nN26514638]

MAGNA

The German government is due to decide on Wednesday which bidder, or bidders, including an offer from Canadian supplier Magna International MGa.TO, it prefers as a partner for the Opel unit of struggling U.S. carmaker GM, and could agree to provide aid for the firm. [ID:nLQ504264]

* ANALYSIS-Magna’s Stronach looks to Opel to realize ambitions [ID:nN26493306]

RESEARCH ROUNDUP

Following is a summary of research actions on Canadian companies reported by Reuters on Wednesday. [RCH/CA]

* Barclays raises Petro-Canada PCA.TO to overweight from equal-weight

* Barclays raises Suncor Energy (SU.TO) price target to C$50 from C$42; rating overweight. (Reporting by Ka Yan Ng; Editing by Padraic Cassidy)

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