TORONTO, May 6 (Reuters) - Toronto’s main stock index may edge higher at the open on Wednesday as prices of key resources held higher, while investors also had to wade through a raft of mixed corporate results that may influence direction.
Support from commodities may be bolstered by U.S. influence after better-than-expected private-sector employment data from ADP turned U.S. stock index futures positive. For more details see [ID:nN06543669].
Meanwhile, world stocks rose close to the previous day’s near 4-month high, helped by better-than-expected results from BNP Paribas and euro zone data showing firmer services business activity. [ID:MKTS/GLOB]
The S&P/TSX composite index .GSPTSE ended Tuesday’s session slightly higher, up 0.1 percent at 9,880.72, after touching its highest level in almost 6 months.
Here are some of the factors that may affect the market.
Oil held above $54 a barrel, supported by news of an unexpected fall in U.S. crude and gasoline stocks, but gains were limited by persistent uncertainty about any economic recovery. [ID:nL6091613]
Gold rose, recovering earlier losses, as the dollar retreated from highs versus the euro, but gains were held in check by a stronger performance from stock markets and other so-called riskier assets. [ID:nL6149626]
The results of the regulatory stress tests for the top 19 U.S. banks will be publicly disclosed on May 7. A source familiar with official talks said U.S. regulators have deemed that about 10 of the 19 U.S. banks being stress tested will need to raise more capital. Another source has told Reuters that Bank of America Corp (BAC.N) has been deemed to need as much as $34 billion in additional capital. [ID:nN05589999]
Fertilizer maker Agrium AGU.TO posted a first-quarter net loss, hurt by falling potash demand and low prices. The company, which launched a hostile bid for U.S. rival CF Industries (CF.N), also said it was committed to the deal and is prepared to increase its offer if CF can demonstrate additional value. [ID:nN05507526]
Biovail BVF.TO posted a weaker quarterly profit due to lower sales of its key drugs and said it expected to take a bigger restructuring hit than expected. The drugmaker also said it plans to close an Ontario-based research facility and cut 50 jobs. [ID:nN06260454]
* Enbridge (ENB.TO) Q1 profit more than doubles, beats Street [ID:nBNG427648]
* CGI Group (GIBa.TO) posts higher quarterly profit [ID:nN05532106]
* Penn West PWT_u.TO posts Q1 loss [ID:nBNG462357]
* Torstar (TSb.TO) reports wider Q1 loss on charge [ID:nBNG425697]
* Kinross (K.TO) quarterly profit rises, eyes new mines [ID:nN05507730]
Canwest Global Communications Corp CGS.TO and its senior senior lenders have agreed to extend the waiver of certain borrowing conditions until May 19. [ID:nWNAB4158]
Following is a summary of research actions on Canadian companies reported by Reuters on Wednesday. For more, see [ID:RCH/CA]
* JP Morgan raises Research in Motion RIM.TO to neutral from underweight
* Raymond James cuts WestJet Airlines (WJA.TO) to market perform from outperform
* UBS raises Loblaw Co (L.TO) to buy from neutral
$1=$1.18 Canadian Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio