TORONTO, April 6 (Reuters) - Toronto’s key stock index could open higher on Monday as a rise in oil prices may lend a boost to the resource-heavy index while renewed optimism over the recovery in the global economy could also lend support.
Canada is a key oil exporter, so hopes for a recovery in the global economy, which would ultimately mean more demand for oil, tends to bode well for the index since it has about a 22 percent weighting in energy stocks,
An agreement last week by G20 leaders on a $1.1 trillion deal to combat the global economic crisis has helped to boost expectations that the downturn in the global economy might not be as severe as anticipated.
Technology stocks will likely take their cue from the United States after news that IBM’s (IBM.N) talks to acquire smaller computer and software rival Sun Microsystems Inc JAVA.O broke down on Sunday. [ID:nN05344764]
Canadian building permits data for February will arrive ahead of the market open while the Ivey Purchasing Managers Index for March will arrive shortly after the market open.
Neither report is expected to have a noticeable impact on stocks, especially with the more key domestic March jobs report due out on Friday.
The S&P/TSX composite index .GSPTSE fell 7.38 points to 9,065.76 on Friday but recorded its fourth-straight weekly gain and remained close to three-month highs.
Here is some of the news that may affect the index:
Oil prices rose above $53 per barrel on Monday, buoyed by expectations that efforts by the world’s rich nations to stimulate their economies may help end the global downturn sooner than expected. [ID:nSIN491212]
Gold slid 2 percent in Europe on Monday as hopes the global economy may be bottoming sparked a rally in stock markets and industrial commodity prices, denting gold’s appeal as a safe haven. [ID:nL6443254]
Canadian miner Teck Cominco Ltd TCKa.TO TCKb.TO said it will sell its 90 interest in Andacollo mine in Chile to Royal Gold Inc (RGLD.O) RGL.TO for $270 million as part of its efforts to shed its debt load. [ID:nBNG29500]
Canada-based toy and stationery products maker Mega Brands MB.TO posted a wider fourth-quarter loss hurt by a weak retail environment and charges related to impairment of goodwill and intangible assets. [ID:nBNG439883]
Canadian fertilizer maker Agrium Inc (AGU.TO), which has launched an unsolicited offer for U.S. rival CF Industries (CF.N), on Monday urged CF’s shareholders to withhold votes for CF’s three director nominees who are up for election at CF’s shareholder meeting. [ID:nN06363688]
Following is a list of research on Canadian-listed companies. For more, please see [RCH/CA]
* Genuity cuts Great West Lifeco (GWO.TO) to “sell” rating on European credit.
* Genuity initiates coverage of Groupe Aeroplan AER.TO with “hold” rating and C$8.50 price target.
$1=$1.23 Canadian Reporting by Frank Pingue; Editing by Theodore d'Afflisio