CANADA STOCKS-TSX may fall on debt jitters, banks may offset

Thu May 28, 2009 8:30am EDT
 
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TORONTO May 28 (Reuters) - Toronto's main stock index may fall on Thursday, extending losses from the previous session on investor concern about mounting U.S. government debt.

The growing jitters about the United States taking on huge debt to revive economic demand against a background of a record budget deficits pushed up bond yields around the world. This fanned fears of higher borrowing costs, which could delay an economic recovery. [MKTS/GLOB]

But Canadian bank results also continue to be a main focus this week, and most have come in ahead of expectations so far, which may help offset the external pressure.

CIBC (CM.TO: Quote), National Bank of Canada (NA.TO: Quote), and Toronto Dominion Bank (TD.TO: Quote) reported results on Thursday, with Bank of Nova Scotia still to come.

The S&P/TSX composite index .GSPTSE fell 143.74 points, or 1.4 percent, at 10,142.16 on Wednesday to snap a three-session winning streak.

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

TORONTO DOMINION BANK

TD Bank, Canada's second largest bank, said profit fell in the second quarter as it took restructuring and hedging charges. [ID:nN25398263]

CIBC   Continued...