May 4 (Reuters) - Toronto’s main stock index could open lower on Tuesday as investors fret over whether Greece can make deep spending cuts as part of a deal to end its fiscal crisis, while also watching key company results from both sides of the border.
Wall Street is also set for a lower open. Investors will be closely watching the progress of a Wall Street reform bill as voting begins in the Senate. [.N]
European stocks fell sharply as mounting doubts over Greece’s bailout and fear of contagion to other euro zone countries rattled investors.
Asian markets outside Japan were lower with China’s key stock index shedding 1.23 percent on concerns over further tightening of monetary policy.
Here is some news that could affect stock prices:
U.S. crude oil fell more than $1 to around $85 a barrel on Tuesday, retreating from 19-month highs, depressed by an expected rise in U.S. crude and fuel stocks and a stronger dollar. [O/R]
Copper tumbled to two-month lows on Tuesday as the dollar rose against the euro and the market fretted about tightening in China, the world’s largest consumer of industrial metals. [MET/L]
GOLD HITS 5-MONTH HIGH
Gold hit five-month highs on Tuesday and record peaks in euro, sterling and Swiss franc terms as doubts over the effectiveness of a Greek bailout and fears of contagion to other euro zone economies prompted haven buying of the metal. [GOL/]
Canada’s dollar fell sharply against the U.S. currency on Tuesday as investors steered away from risk on jitters about Greece’s aid package, rattling oil and equity markets. [CAD/]
Canada’s No. 1 energy company Suncor Energy Inc’s (SU.TO) quarterly profit beat market expectations on Tuesday, helped by additional production from its acquisition of Petro-Canada and higher crude oil prices. [ID:nN03213638]
News and data provider Thomson Reuters Corp (TRI.N) (TRI.TO) reported a lower quarterly profit on Tuesday, reflecting the lingering effects of the financial crisis on sales to its business and legal clients. The company reiterated that net sales would strengthen in 2010, and that revenue would grow again in the second half. [ID:nN03214917]
Canada’s second-biggest airline, WestJet Airlines Ltd (WJA.TO) reported a 63 percent drop in its first-quarter profit on Tuesday, hurt in part by rising fuel costs. [ID:nN04258610]
Simon Property Group Inc (SPG.N) has bid $5.8 billion for all of General Growth Properties Inc (GGP.N), even as its offer to buy a minority stake in its rival was rejected, sources familiar with the matter said on Monday. General Growth said it had accepted an investment plan led by Brookfield Asset Management (BAMa.TO) over the one from Simon, but it was reviewing Simon’s proposal. [ID:nN03171164]
Agnico-Eagle Mines (AEM.TO) may raise its shareholder dividend when it sets its 2011 budget in December, as the company tries to attract a wider pool of shareholders, its chief financial officer said on Monday. [ID:nN03227165]
Loblaw Cos Ltd (L.TO) said on Tuesday that its profit jumped 25 percent, topping expectations, as Canada’s largest supermarket chain benefited from a rising Canadian dollar and the purchase of an ethnic grocery store chain. [ID:nN04190219]
Canadian oil and natural gas company Fairborne Energy Ltd FEL.TO, on Tuesday, posted a quarterly profit that topped market estimates, helped by lower operating and transportation costs. [ID:nSGE6430ET]
STELLA-JONES PROFIT FALLS
Wood utility poles maker Stella-Jones Inc (SJ.TO) on Tuesday reported a 25 percent decline in quarterly profit, hurt by softer pricing and weaker railway tie sales, and said it expects demand levels to remain similar to last year. [ID:nSGE6430H6]
Yamana Gold’s (YRI.TO) first-quarter revenue jumped 62 percent on higher gold prices and rising production, the company said on Monday, but its profit eased due to a huge foreign exchange gain in the year-before period. [ID:nN03229401]
Canadian mineral exploration company Franconia Minerals Corp FRA.TO raised its ownership interest in the Birch Lake mineral property to 70 percent. [ID:nSGE6430HY]
Brookfield Real Estate Services Fund’s BRE_u.TO on Tuesday said that its quarterly income more than tripled, helped by increase in home sale activity, and said the housing market is poised to moderate in 2010. [ID:nSGE6430HG]
Absolute Software Corp (ABT.TO) narrowed third quarter loss on Monday, but the data protection software company said it performed lower than its own expectations hurt by a slowdown in sales growth. [ID:nSGE6420JJ]
Mercer International Inc MRIu.TO (MERC.O) on Monday posted a narrower first-quarter loss, helped by strengthening pulp markets. [ID:nSGE6420LA]
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.
* Alange Energy ALE.V price target cut to 45 cents from 60 cents; rating market perform at Raymond James
* Iteration Energy (ITX.TO) price target raised to $1.83 from $1.4 at Genuity
* Shaw Communications (SJRb.TO) price target cut to $19 from $21 at Genuity
* Wescast Industries WCSa.TO price target raised to $9.5 from $8.75 at Genuity ($1=$1.02 Canadian) (Reporting by Bangalore newsroom, editing by Savio D’Souza and Jeffrey Hodgson)