June 28 (Reuters) - Toronto’s main stock index could open higher on Monday as commodity prices firmed on optimism regarding a global economic recovery following the G20 summit over the weekend.
Leaders of the Group of 20 industrialized and emerging economies pledged to tackle government deficits while ensuring the global recovery stays intact, offering a potential boost to equities markets.
Mining stocks could take the spotlight after the Australian government’s hopes of defusing a damaging row over its planned mining tax hit a snag when the Greens party vowed to block any attempt to water down the tax.
European shares rose, snapping a four-session losing run, with financials featuring among the gainers.
Major Asian stocks were down, with China’s key stock index shedding 0.7 percent on tight liquidity conditions.
Here is some news that could affect stock prices:
Oil eased below $79 a barrel on Monday, turning lower after prices touched their highest in almost eight weeks as tropical storm Alex disrupted Mexican exports and prompted some U.S. producers to evacuate platforms. [O/R]
Copper climbed towards its highest in almost a month on Monday as equity markets rose while traders awaited for key U.S. macroeconomic data for more clues about the strength of the global economic recovery. [MET/L]
Gold nosed at last week’s record highs on Monday, buoyed by a dip in the dollar in Asian trading and worries about the global economy, although a lack of consumer demand could push prices lower in the near term. [GOL/]
The Canadian dollar edged higher on Monday, supported by firmness in global stock markets, but stayed mostly range-bound as investors shrugged off the accomplishments of the G20 summit. [CAD/]
A judge found Syncrude Canada Ltd, Canada’s largest oil sands producer, guilty on Friday in the deaths of 1,600 ducks that landed on a toxic Northern Alberta tailings pond in 2008, ruling the company should have had deterrents in place. Syncrude faces maximum penalties of C$500,000 for provincial charges and C$300,000 under federal charges in the case. [ID:nN25256733]
The vote on Magna International Inc’s MGa.TO plan to buy its founder’s controlling shares for nearly $900 million will go ahead, but only after it complies with an order to give shareholders more information on the deal. Magna said on Friday it would set a new date “in due course” for the shareholder vote it had planned for Monday. [ID:nN25106640]
GRAN TIERRA CONFIRMS OIL DISCOVERY Canadian oil and gas explorer and producer Gran Tierra Energy Inc (GTE.TO) confirmed an oil discovery at the Chaza block in the Putumayo Basin in Colombia, and said on Monday it expects long-term testing and early production in the first quarter of 2011. [ID:nSGE65R0FD]
Canada’s Mullen Group Ltd MTL.TO on Friday nearly doubled its stake in Logan International Inc LII.TO to 12.5 percent. [ID:nSGE65O0H7]
Software and hardware maker Versatile Systems Inc VV.V said on Monday it cut jobs and moved its research and development (R&D) personnel to its professional services group, to reduce costs. [ID:nSGE65R0DN]
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.
* Research in Motion Ltd RIM.TO rating raised to outperform from market perform at Raymond James
* Quadra FNX Mining Ltd QUX.TO price target cut to $19; rating buy at Paradigm
Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Frank McGurty