April 28 (Reuters) - Toronto’s main stock index could open lower on Wednesday, weighed by weak commodity prices as the U.S. dollar hit a one-year high versus the euro and as investors fret over Greece and Portugal’s debt problems.
European equities hit a seven-week low as banks took a pounding on concerns about euro zone debt contagion.
Wall Street is set for a slightly higher open, after previous session’s steep sell-off, ahead of the Federal Reserve’s interest rate decision and statement on the economy. [.N]
The Fed is expected to conclude a two-day policy meeting by keeping interest rates near zero and repeating its vow to keep rates low for an extended period.
Asian stocks fell with the news China would place a moratorium on capital raising by real estate firms as part of a broader campaign to rein in property price rises.
Here is some news that could affect stock prices:
Oil fell for the third straight session taking losses this week to 4 percent on excess crude supplies in the United States and widespread fears a possible debt default in Greece could derail the recovery. [O/R]
Industrial metals fell for a second day on Wednesday, with copper dropping to a one-month low after the dollar hit a one-year high versus the euro and investors fretted over Greece and Portugal’s debt problems. [MET/L]
Gold eased in Europe on Wednesday from Tuesday’s 2010 high as the dollar reached a one-year peak against the euro, but the metal remains firmly supported by fears euro zone sovereign risk is spreading. [GOL/]
Toronto Stock Exchange operator TMX Group Inc (X.TO) posted a first-quarter profit that beat analysts’ estimate by a cent, helped by higher revenue from issuer services, cash markets equity and fixed income trading. [ID:nSGE63R0FP]
Gold producer Barrick Gold Corp (ABX.TO) reported better-then-expected first-quarter earnings on increased production, lower total cash costs and higher realized prices for both gold and copper. IT posted adjusted earnings of 75 U.S. cents a share, up from 34 U.S. cents a year earlier. [ID:nN27154316]
Canadian Pacific Railway Ltd (CP.TO) reported first-quarter net income of C$100 million, an increase of 74 percent from C$57 million a year ago. The company posted adjusted earnings of 60 cents per share, on revenue of C$1.2 billion for the quarter. [ID:nN28168960]
Jean Coutu Group PJCa.TO returned to a fourth-quarter profit, benefiting from higher prescription drug sales, but the Canadian drug store chain narrowly missed expectations for revenue. [ID:nN28111465]
CGI Group Inc (GIBa.TO), Canada’s biggest computer consulting company, posted a 4.9 percent increase in quarterly profit, driven by improvements in its systems integrations and consulting business. [ID:nN28130961]
Rogers Communications Inc (RCIb.TO) posted a 23 percent rise in first-quarter earnings on Wednesday, driven by growth in its wireless, cable TV and media businesses. [ID:nN28168151]
Fuel-cell maker Hydrogenics Corp reached a settlement with American Power Conversion Corp and said under the terms of the settlement, APC has paid Hydrogenics US$1.2-million. [ID:nWNAB2978]
Real estate services company FirstService Corp reported first-quarter adjusted earnings of 15 U.S. cents a share, compared to 8 U.S. cents a year ago. The company posted revenue of US$402.4 million for the quarter. [ID:nWNAB3053]
Simon Property Group Inc (SPG.N) has agreed to take a lower percentage voting stake in General Growth Properties Inc (GGP.N) as it tries to win over its rival into accepting its recapitalization offer, a source familiar with the matter said on Tuesday. Simon, the largest U.S. mall owner, met with General Growth’s board last week to persuade them to choose its offer over a competing proposal led by Brookfield Asset Management (BAMa.TO). [ID:nN27127786]
Investor Carl Icahn said on Tuesday Canadian authorities have invalidated Lions Gate Entertainment Corp’s LGF.N poison pill designed to thwart his US$7-a-share hostile bid. [ID:nN27132398]
A truck at Suncor Energy Inc’s (SU.TO) Montreal refinery exploded on Tuesday, sending eight people to hospital but having no impact on the plant’s operations, the company said on Tuesday. [ID:nN27127725]
Canada’s No. 3 oil exploration and refining company Husky Energy Inc (HSE.TO) said on Tuesday its first-quarter profit rose 5 percent as oil prices strengthened even as output dropped and refining margins sagged. [ID:nN19202831]
Delta Air Lines (DAL.N) said on Tuesday it is in talks with WestJet Airlines Ltd (WJA.TO) on an alliance but that no deal has been reached. Last week Delta CEO Richard Anderson said during an earnings conference call that an alliance pact had been reached with WestJet. But WestJet put out a statement late on Monday saying that no such agreement has been signed although a “commercial relationship could occur in the future.” [ID:nN2714937]
IESI-BFC PROFIT UP
Waste management company IESI-BFC Ltd BIN.TO posted higher first-quarter earnings on Tuesday, helped partly by a rise in recycled commodity prices. [ID:nSGE63Q0M3]
TimberWest Forest Corp TWF_u.TO on Tuesday said it would raise C$60 million in a discounted bought deal financing and use the proceeds mainly to repay debt. The timber and land management company said it would offer 12 million stapled units at C$5 each, a discount of about 9 percent. [ID:nSGE63Q0KQ]
Transportation company Vitran Corp VTN.TO VTNC.O on Tuesday posted a narrower first-quarter loss that beat estimates, helped by reduced loss from operations and higher shipments at its less-than-truckload segment. [ID:nSGE63Q0JU]
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency unless otherwise stated.
* Detour Gold Corp (DGC.TO) commenced with rating buy; price target $25.50 at UBS
* Grande Cache Coal GCE.TO price target cut to $9.70 from $9.90; rating buy at UBS
* Pan Orient Energy Corp (POE.V) price target raised to $8.35 from $6.75; rating buy at UBS
* Norbord Inc NBD.TO price target raised to $24 from $20; rating outperform at Raymond James
Reporting by Bangalore newsroom, editing by Savio D'Souza and Jeffrey Hodgson