August 24, 2009 / 12:16 PM / 10 years ago

CANADA STOCKS-TSX may open higher on firming commodities, hope

 TORONTO, Aug 24 (Reuters) - Toronto’s main stock index may head higher at the open on Monday as firm commodity prices buoy the resource-heavy index, while reassurances from world central bankers spurred optimism about the world’s economic recovery.
 The worst global recession in 70 years was nearing a close, although it would be a long, slow climb back to normal growth, U.S. Federal Reserve Chairman Ben Bernanke and other central bankers said at the annual gathering in Jackson Hole over the weekend. [ID:nN23121486]
 On Friday, the S&P/TSX composite index .GSPTSE closed up 1.22 percent at 10,831.18.
 Here is some of the news that may affect the market.
 Oil edged above $74 a barrel, extending its rally to trade near a 10-month high, on optimism that an economic recovery will spur a rebound in energy demand. [ID:nSYD146874]
 Gold was steady above $950 an ounce on Monday, supported by higher oil prices and investor demand but remaining rangebound as a firmer dollar and strong resistance at $960 prevented any robust gains. [ID:nT358819]
 Hurricane Bill weakened to post-tropical storm status on Monday after lashing Eastern Canada with heavy winds and rain. The storm is expected to gradually peter out as it moves through the cold waters in the oil-producing region of the North Atlantic. [ID:nN24129579]
 When Canadian banks trot out yet another set of healthy profits and fat dividends this week, it might be tempting to think of the industry as forever immune to the ravages of recession. [ID:nN2165076]
 * FACTBOX-Canadian banks 3rd-quarter earnings forecasts [ID:nN2176113]
 Biovail BVF.TO has struck a deal with Swiss biotech Santhera (SANN.S) over a drug to treat dyskinesia in Parkinson’s disease, the companies said. [ID:nLO475355]
 Oil and natural gas trust Daylight Resources Trust DAY_u.TO said late on Sunday it is to buy Highpine Oil & Gas  HPX.TO for C$530 million including the assumption of debt and transaction costs. [ID:nBNG127505]
 * See also: Provident Energy Trust announces sale of assets [ID:nWNAB2908]
 On Friday General Motors failed to reach a decision either in favor of the Canadian automotive firm Magna International MGa.TO, which is Germany’s preferred buyer for Opel, or rival bidder RHJ International RHJI.BR, leaving the carmaker’s fate up in the air. [ID:nNLL484019]
 * Germany ready for further talks with GM [ID:nBAT003111]
 Following is a summary of research actions on Canadian companies reported by Reuters on Monday. For more, please double click on [RCH/CA]
 * Versant raises Aeterna Zentaris AEZ.TO to neutral
 * Raymond James starts Magma Energy MXY.TO with outperform
 (Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)                                      

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