May 28, 2009 / 12:33 PM / 10 years ago

CANADA STOCKS-TSX may fall on debt jitters, banks may offset

TORONTO, May 28 (Reuters) - Toronto’s main stock index may fall on Thursday, extending losses from the previous session on investor concern about mounting U.S. government debt.

The growing jitters about the United States taking on huge debt to revive economic demand against a background of a record budget deficits pushed up bond yields around the world. This fanned fears of higher borrowing costs, which could delay an economic recovery. [MKTS/GLOB]

But Canadian bank results also continue to be a main focus this week, and most have come in ahead of expectations so far, which may help offset the external pressure.

CIBC (CM.TO), National Bank of Canada (NA.TO), and Toronto Dominion Bank (TD.TO) reported results on Thursday, with Bank of Nova Scotia still to come.

The S&P/TSX composite index .GSPTSE fell 143.74 points, or 1.4 percent, at 10,142.16 on Wednesday to snap a three-session winning streak.

Here is some of the news that may affect the market:


TD Bank, Canada’s second largest bank, said profit fell in the second quarter as it took restructuring and hedging charges. [ID:nN25398263]


Canadian Imperial Bank of Commerce, the country’s fifth largest bank, reported a quarterly loss as it took charges in its structured credit and other run-off businesses, but the results beat analysts’ expectations. [ID:nN25485941]

* CIBC to issue shares for dividend reinvestment [ID:nN28312290]


Second-quarter profit jumped 46 percent helped by a strong performance from its financial markets division, National Bank of Canada said. [ID:nN28255915]


Oil held above $63 a barrel after OPEC ministers meeting in Vienna decided to leave the group’s oil output untouched at 24.85 million barrels per day. [ID:nSYD113600]

Gold turned higher in Europe, reversing earlier losses, as the dollar weakened against the euro, sparking buying of the metal as an alternative asset. [ID:nLS166837]

* Cameco (CCO.TO) CEO projects big rise in uranium output [ID:nN27271211]


The battle for German carmaker Opel has effectively narrowed to a race between Canadian-Austrian auto parts supplier Magna International MGa.TO and Italian carmaker Fiat FIA.MI. [ID:nSP402834]

* Magna boosted capital on offer for Opel-Stronach [ID:nBAT002962]

* Stronach seeks to crown legacy with Opel [ID:nL0607343]


Following is a summary of research actions on Canadian companies reported by Reuters on Thursday. [RCH/CA]

* Dundee raises Laurentian Bank(LB.TO) to buy from neutral

* RBC cuts Uranium One UUU.TO to sector perform from outperform


Investors this week are gathering in the financial center of Canada’s oil patch to chart the course of private capital flows and seek fresh opportunities as the country fights its way out of a deep global recession. [ID:nN26495973]

* Canada’s OMERS to boost funding to venture capital [ID:nN28264713]

* OMERS likely to adjust asset mix in 2010-CEO [ID:nN28309649]

$1=$1.12 Canadian Reporting by Ka Yan Ng, Editing by Chizu Nomiyama

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