TORONTO, July 21 (Reuters) - Toronto’s main stock market index could open higher on Tuesday, as steady commodity prices and investors’ optimism about this quarter’s earning results could boost the resource-heavy index.
World stocks approached a 9-month high while emerging stocks hit a 2009 peak as investors anticipated upward surprises from earnings results due later given a run of strong reports over the past week. [ID:nLL409840]
U.S. stock index futures jumped on Tuesday after machinery maker and bellwether Caterpillar Inc (CAT.N) shares jumped more than 9 percent in early trade following strong quarterly results. [.N]
On Monday the S&P/TSX composite index .GSPTSE closed up 171.29 points at 10,540.71 for its sixth-straight winning session.
Here is some news that could affect the market:
Research In Motion Ltd said on Monday Nortel Networks had effectively blocked the BlackBerry maker from bidding potentially $1.1 billion for the bankrupt Canadian company’s wireless business. [ID:N20134234]
Oil edged above $64 a barrel on Tuesday, supported by climbing equities markets, but sapped by forecasts the next figures on U.S. supply and demand would show stocks of refined products have risen again. [ID:SIN115579]
Gold steadied in Europe on Tuesday, consolidating after the previous session’s gains, as the dollar arrested its slide versus the euro and oil prices stabilized. [ID:LL432138] Base metals prices were mixed. [ID:LL734761]
CANADIAN NATIONAL RAILWAY (CNR.TO)
Canadian National Railway reported a 16 percent drop in quarterly profit on Monday but the country’s biggest railroad predicted the worst of the economic downturn was behind it. [ID:N17496790]
AIR CANADA ACa.TO
Several of Air Canada’s employee unions want the Canadian government to put up all of the C$600 million ($545 million) the cash-strapped carrier needs to meet immediate financial obligations, and shut out private lenders.[ID:N20114801]
Raymond James said it sees a weak second-quarter ahead for paper and forest products companies, citing little commodity pricing relief and the pronounced fall in the U.S. dollar. [ID:BNG442934]
Paramount Gold and Silver Corp agreed to buy Klondex Mines Ltd (KDX.TO) in an all-stock deal valued at about C$80 million to boost its gold exploration projects in North America, trumping a rival bid by Silvercorp Metals Inc (SVM.TO).
* Raymond James raises Canadian National Railway (CNR.TO) to outperform from market perform.
* Raymond James cuts TimberWest Forest TWF_u.TO price target to C$3.50 from C$4; rating market perform.
* Raymond James raises SFK Pulp Fund SFK_u.TO price target to C$0.20 from C$0.15; rating underperform. For more research, please see: [CA-RCH]
$1=$1.10 Canadian Reporting by Nina Lex; Editing by Jeffrey Hodgson