TORONTO, May 29 (Reuters) - Toronto’s main stock market index could open higher on Friday on rising commodity prices and the falling U.S. dollar, while investors study the latest results from Royal Bank of Canada (RY.TO).
Investors will also take time to digest a raft of U.S. economic data that is expected paint a better picture on how the economy is faring.
Toronto’s main stock market index climbed 2.5 percent on Thursday as energy shares climbed in tandem with oil prices and financial shares gained as results from some of Canada’s big banks topped market expectations.
Four Canadian banks reported results on Thursday that were stronger than expected, even as they set aside more money to cover bad loans. [ID:nN28311974]
Royal Bank of Canada RBC.TO reported a second-quarter loss on Friday, reflecting a previously announced C$1 billion ($909 million) writedown for a drop in the value of the bank’s U.S. assets and a rise in provisions for bad loans. [N25399893]
Here are some of the stories that may affect the market:
Gold rallied through $970 an ounce for the first time since February in Europe on Friday as traders bought the metal as a hedge against weakness in the dollar. [nLT268826]
The dollar fell to a five-month low against a basket of currencies on Friday and the yen also dropped as signs the global recession may have passed its worst prompted investors to seek riskier assets.[nLT940460]
Oil rose to a six-month high above $66 per barrel on Friday, on track for its largest monthly percentage gain in more than a decade, after Japanese and U.S. data suggested the economic downturn may be moderating. [nSYD450019]
State-owned Russian Railways plans to order high-speed trains worth between 500 million and 550 million euros ($699.7-$769.6 million) from Bombardier (BBDb.TO), the world’s No. 1 passenger train maker. [nLT300292]
Germany raced to overcome a transatlantic spat and growing tensions among Opel bidders to clinch a deal for the German carmaker on Friday, as parent General Motors (GM.N) hurtled toward bankruptcy. [nLT218182]
CANADA‘S LUNDIN SEEKS EXTENSION OF WAIVER PERIOD
Canada’s Lundin Mining Corp (LUN.TO) said on Thursday it is seeking to extend the waiver period for non-compliance on terms of a credit line by 30 days. [nBNG399347]
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. For more, see [RCH/CA]
*Genuity cuts Canadian Imperial Bank of Commerce (CM.TO) price target to C$71 from C$76; Rating Buy
*Genuity raises National Bank of Canada (NA.TO) price target to C$64 from C$60; Rating Hold
*Genuity raises Toronto-Dominion Bank (TD.TO) price target to C$61 from C$60; Rating Hold
*Raymond James cuts Baytex Energy Trust BTE_u.TO to Market Perform from Outperform
*Canaccord Adams raises Goldcorp GG.N target price to $40 from $36.50; Keeps hold rating ($1=$1.10 Canadian) (Reporting by Scott Anderson, Editing by Chizu Nomiyama)