CANADA STOCKS-TSX may open higher on commodity prices

Mon May 31, 2010 8:56am EDT
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May 31 (Reuters) - Toronto's resource-heavy main stock index could open higher on Monday, helped by firm commodity prices, but trade is expected to be subdued as the U.S. and U.K markets remain closed for a holiday.

In economic news, strong consumer spending and exports helped Canada's economy expand in the first quarter at the fastest rate in more than a decade, fueling expectations the Bank of Canada will hike interest rates on Tuesday. [ID:nN31202447]

But investors could be cautious after China warned that Europe's struggle to contain ballooning debt posed a risk to global economic growth, raising the spectre of a double-dip recession. [MKTS/GLOB]

Markets in Europe pared gains after data showed euro zone economic sentiment defied market expectations of a small gain and fell sharply in May, indicating that the region's debt crisis has begun affecting the real economy.

Asian stocks ended mixed.

Here is some news that could affect stock prices:


Oil rose above $74 on Monday in line with a timid recovery across financial markets, but was set for its biggest monthly loss in 18 months after European economic crisis raised the prospect of reduced fuel demand. [O/R]

COPPER EASES   Continued...