June 1 (Reuters) - Toronto’s main stock index could open weaker on Tuesday after commodity prices and global equity markets fell on concerns about euro zone and Chinese growth.
Investors will also keep a close eye on the Bank of Canada’s interest rate announcement.
Canada’s central bank is widely expected to raise its key interest rate by 25 basis points to 0.50 percent at 9 a.m. (1300 GMT), which would make it the first Group of Seven country to raise rates since the global financial crisis. [ID:nN25118365]
World stocks fell on fears about the outlook for the global economic recovery. [MKTS/GLOB]
Wall Street is also set for a lower open after data revealed manufacturing growth slowed across the globe in May amid growing uncertainty over what damage Europe’s debt crisis may do to the fragile economic recovery. [.N]
European shares fell and the euro hit a four-year low against the dollar. Asian markets were also down.
Here is some news that could affect stock prices:
Bank of Nova Scotia (BNS.TO) said on Tuesday quarterly profit rose 26 percent as domestic banking had a record quarter and loan losses fell again, exceeding expectations for more modest profit growth. [ID:nN28202192]
Oil fell 3 percent to around $72 per barrel on Tuesday, erasing early gains after Chinese and European data raised concerns over the pace of economic growth. [O/R]
COPPER AT 1-WEEK LOW
Industrial metals fell on Tuesday, with copper dropping to its lowest in a week due to a weaker euro and on signs of a slowdown in the pace of economic growth in China, the world’s top copper consumer. [MET/L]
Gold rose above $1,220 an ounce in Europe on Tuesday as investors bought the metal as a haven from risk after the European Central Bank warned that euro zone banks could face a fresh wave of losses. [GOL/]
Canada’s dollar weakened on Tuesday, hurt by a global rise in risk aversion on concern about the euro zone’s growth outlook, with traders set to take their next cue from the Bank of Canada’s interest rate decision. [CAD/]
IMAX Corp IMX.TO said on Tuesday it plans to expand its big-screen theater offering in North America in partnership with theater-operator AMC Entertainment. [ID:nN0197882]
NEW PIPELINE WON’T SATE ASIAN OIL DEMAND-ENBRIDGE
The planned C$5.5 billion ($5.2 billion) Northern Gateway pipeline will not be big enough to satisfy demand for Canadian oil sands crude from Pacific Rim nations, Enbridge Inc (ENB.TO), the line’s backer, said in regulatory filings. [ID:nN31219732]
Ram Power Corp RPG.TO plans to acquire tiny Sierra Geothermal Power (SRA.V), the two geothermal-power companies said on Monday, in a deal that continues the consolidation trend in this money-hungry segment of the green energy sector. [ID:nN3199841]
Copper Mountain Mining Corp CUM.TO said on Monday it has signed debt financing agreements worth $322 million for the development of its flagship Copper Mountain project in southern British Columbia. [ID:nN31253446]
Shares of Greystar Resources GSL.TO jumped 45 percent on Monday after the company said it won’t have to redesign its Angostura gold project in Colombia to conform to new mining regulations in the country. [ID:nN31251228]
Husky Energy Inc (HSE.TO) said on Monday that an appraisal well of a South China Sea natural gas discovery could produce up to 70 million cubic feet a day, a prolific volume that could lift the value of its proposed spinoff company. [ID:nN31260383]
Bird Construction Income Fund BDT_u.TO said on Monday one subsidiary has executed a fixed-price contract with Defense Construction Canada for the design and construction of a project. [ID:nWNAB4927]
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.
* Heroux-Devtek Inc (HRX.TO) price target raised to $6.75 from $6.25 at Scotia
* Mercer International Inc (MERC.O) MRIu.TO rating raised to strong buy from outperform at Raymond James
* Quadra FNX Mining QUX.TO price target raised to $21 from $18.50 at Scotia
* Thomson Reuters Corp (TRI.TO) price target raised to $45 from $42 at Scotia
* Western Energy Services Corp WRG.V started with outperform rating with price target of $0.35 at Raymond James
* Westfire Energy Ltd WFE.TO price target cut to $11 from $11.50; rating strong buy at Raymond James ($1=$1.05 Canadian) (Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson)