May 18 (Reuters) - Toronto’s main stock index looked set to open higher on Tuesday, supported by rebound in commodity prices.
Across the border, Wall Street is also expected to open higher on cautious optimism as euro zone finance ministers are working on ironing out wrinkles in the 750 billion euro anti-contagion rescue plan. [.N]
European shares rose led by banks and commodity stocks.
Mostly Asia equities were up with China’s stock index closing up more than one percent as property and banking stocks staged a technical rebound. Oil rose more than a dollar to around $71 a barrel, but high inventory levels and strength of the dollar were expected to limit gains.
Here is some news that could affect stock prices:
OIL REBOUNDS FROM 5-MONTH LOW
Oil struggled to rise more than a dollar to above $71 a barrel on Tuesday, recovering from a five-month low the previous session, but high inventory levels and the strength of the dollar were expected to limit gains. [O/R]
Industrial metals bounced on Tuesday from a sharp sell-off in the previous session, but looked vulnerable due to persistent worries about austerity measures in the euro zone and demand growth in China. London copper jumped 2.7 percent as investors picked bargains after the previous session’s sell-off. [MET/L]
Gold eased in Europe on Tuesday as assets seen as higher risk like stocks and the euro rose on hopes euro zone officials are making progress on a package of measures to resolve the euro zone’s debt crisis. [GOL/]
Soros Fund Management LLC has taken a share stake in Research In Motion Ltd RIM.TO, a maker of wireless solutions for the worldwide mobile communications market, according to a regulatory filing on Monday. [ID:nWNAB1618]
iPHONE REPLACES BLACKBERRY FOR SOME BANKERS
British bank Standard Chartered (STAN.L) (2888.HK) is replacing the Blackberry, currently its standard corporate communications device, with the iPhone, a move that could eventually result in thousands of bankers switching to the Apple (AAPL.O) device from Research in Motion Ltd’s RIMM.TO phone for business communication on the go. [ID:nTOE64G06A]
The chief operating officer of Barrick Gold (ABX.TO), the world’s largest producer of the precious metal, said on Monday the company is currently focused on internal growth but on the lookout for potential acquisitions. [ID:nN17109009]
OIL SANDS RISKS LIKE SLOW-MOTION OIL SPILL
Some environmental risks of Canada’s oil sands are similar to the Gulf of Mexico oil spill “but playing out in slow motion,” the co-author of a report warning investors of the ecological, financial and social risks of oil sands development said on Monday. [ID:nN1747894]
ISE Ltd ISE.TO, a maker of heavy duty hybrid-electric drive systems, on Monday posted a narrower first-quarter loss helped by lower expenses. [ID:nSGE64G0LJ]
Boardwalk Real Estate Investment Trust (BEI_u.TO) said on Monday its funds from operations fell about 6 percent in the first quarter, partly as a result of the dilutive effect of holding higher levels of cash. [ID:nSGE64H03N]
Canadian oil explorer Niko Resources Ltd (NKO.TO) said on Monday it signed four new production sharing contracts with the Indonesian government, increasing its acreage holdings by 29 percent in that country. [ID:nSGE64H0E9]
Chile’s giant Collahuasi copper mine is nearly back to normal output despite a subcontractor strike, the workers union told Reuters on Monday, but continued labor unrest fanned fears protests could spread to other mines and rally copper prices. [ID:nN17226308]
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.
* Magma Energy MXY.TO price target raised to $2.20 from $2; rating outperform at Raymond James
* Maxim Power (MXG.TO) price target cut to $4.10 from $4.55; rating buy at Salman Partners
* New Millennium Capital NML.V price target raised to $1.60 from $1.45; rating outperform at Raymond James ($1=1.031 Canadian Dollar) (Reporting by Bangalore newsroom, editing by Jeffrey Hodgson)