TORONTO, June 1 (Reuters) - Canada’s main stock market index could open higher on Monday as rising oil and metal prices underpin the resource-heavy market.
The index, which climbed more than 11 percent last month, is also expected to feed off the positive attitude from most of the overseas markets.
The markets will also focus on General Motors (GM.N) after the ailing car maker filed bankruptcy protection in federal court in Manhattan. [N01398575]
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed down 0.2 percent, at 10,370.07 on Friday.
Here are some of the stories that may affect the market:
Oil rose more than 2 percent to a seven-month high on Monday, extending its biggest monthly gain in a decade due to rallying stock markets and sustained expectations for a global economic recovery. [SP429646]
Gold rose to three-month highs above $985 an ounce in Europe on Monday as investors bought bullion as a hedge against dollar weakness and the prospect of future inflation, while expectations of economic recovery grew. [nL1459956]
COPPER HITS 7-MONTH HIGH ON CHINA DATA, WEAK DLR
Copper rose more than 3 percent on Monday to hit the psychological $5,000 a tonne level and its highest since mid-October, as Chinese data showing modest expansion in manufacturing and a weak dollar drove industrial metals to new multi-month highs. [BJB000616]
Canada’s currency shot higher versus the U.S. dollar on Monday, boosted by risk appetite, but fell back slightly ahead of domestic data that is expected to show Canada experienced the biggest economic contraction on record in the first quarter. [nN01450822]
MDS Inc MDS.TO said on Monday that it planned to narrow its contract research focus by selling its late stage operations and central laboratory divisions. [nN01447401]
HUSKY ENERGY PLANS $1 BLN SPINOFF IN HK, TORONTO - REPORT
Husky Energy Inc (HSE.TO), a Canadian oil company controlled by tycoon Li Ka-shing, plans a dual listing for its Asian assets in Hong Kong and Toronto next year, a move that could raise up to $1 billion, the South China Morning Post reported on Monday. [nHKG73672]
Following is a summary of research actions on Canadian companies reported by Reuters on Monday. For more, see [RCH/CA]
*Dundee raises Royal Bank of Canada (RY.TO) target price to C$38 from C$36; Rating sell
*RBC cuts Canadian Imperial Bank of Commerce (CM.TO) price target to C$87 from C$95; Rating Sector Perform ($1=$1.08 Canadian) (Reporting by Scott Anderson, Editing by Chizu Nomiyama)