June 7 (Reuters) - Toronto’s main stock index could open lower on Monday as commodity prices fell on demand concerns and as investors fear that Hungary may be next casualty of the growing debt crisis in Europe.
Hungary’s Economy Minister Gyorgy Matolcsy said the new centre-right government would stick to the budget deficit target of 3.8 percent and would need to cut spending worth 1.0-1.5 percent of GDP to do so.
Wall Street is set for a slightly higher start, helped by firmer data out of Europe. [.N]
European shares pared early losses after a report showed a better-than-expected German manufacturing data. Financial stocks were down on report that British Finance Minister George Osborne is planning to slap a punishing new tax on banks.
Asian markets fell with the Nikkei plunging nearly 4 percent, marking its biggest daily drop in 14 months.
Here is some news that could affect stock prices:
Oil reversed early losses of almost 3 percent on Monday after a dip below the psychological $70 a barrel level brought out bargain hunters, despite signs of weakness in the U.S. recovery and warnings on Hungary’s debt. [O/R]
Copper trimmed losses after hitting an eight month-low on Monday, as the euro turned positive versus the dollar but the market remained jittery on the back of mounting fears over the euro zone economy’s health. [MET/L]
Gold held above $1,215 an ounce in Europe on Monday, outperforming most other commodities as investors turned to bullion as a haven from volatility while equities and the euro extended Friday’s losses. [GOL/]
Capstone Mining Corp (CS.TO) said on Monday it will suspend mining and milling operations at its Minto mine for five to seven days due to a spreading wildfire, and workforce will be reduced to a maintenance crew only. [ID:nSGE6560FS]
Crystallex International Corp KRY.TO said on Monday it agreed to form a joint venture with China Railway Resources Group Co for the development of the Las Cristinas gold project in Venezuela. [ID:nSGE6560FK]
RioCan (REI_u.TO) Real Estate Investment Trust aims to invest C$400 million ($381 million) by year-end to expand its portfolio of U.S. retail properties, and it may enter at least one new U.S. geographic region, its chief executive said on Friday. [ID:nN04120198]
Cameco Corp (CCO.TO) plans to double capacity at its Inkai uranium mine in Kazakhstan once it has the conversion facilities to advance nuclear fuel production, the company’s chief executive said. [ID:nLDE6560D2]
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.
* Delphi Energy DEE.TO coverage resumed with neutral rating; price target of $3.50 at Macquarie
* Dundee REIT (D_u.TO) target price cut to $27 from $28.25; keeps outperform rating at Raymond James
* Eastern Platinum ELR.TO price target raised to $1.90 from $1.70; rating buy at UBS
$1=1.06 Canadian Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson