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TSX May Find Support At 12K - Canadian Commentary

4/10/2012 8:52 AM ET

After falling in the past four sessions to dip to a 3-month low, Canadian stocks may open higher Tuesday. Even as commodities were struggling to move higher, value buying at bottom levels might help stocks post gains during the course of the session.

U.S. stock futures were pointing to a marginally higher open

On Monday, the S&P/TSX Composite Index extended losses for a fourth session, dipping 84.61 points or 0.70 percent to 12,018.50.

The price of crude oil was extending losses for a second session Tuesday morning after data showed that China unexpectedly swung to a trade surplus in March, which raised concerns about oil demand growth in the world's second-biggest consumer. China recorded a $5.35 billion trade surplus in March as import growth eased back from a 13-month peak while exports grew faster than expected, customs data showed. Crude for May delivery was down $0.15 to $102.31 a barrel.

The price of gold was holding on to its recent gains Tuesday morning even as the U.S. dollar was trading firm versus a basket of currencies. Gold for June edged up $5.20 to $1,649.10 an ounce.

In corporate news from Canada, Bombardier (BBD_B.TO) inaugurated a new office in Shanghai, which will be home to the Bombardier Commercial Aircraft teams working with the Commercial Aircraft Corporation of China Ltd., Bombardier Aerospace's Supply Chain organization in China, and is the headquarters for the Bombardier Commercial Aircraft sales and marketing team for China and North Asia.

Oil and gas industry services provider GASFRAC Energy Services (GFS.TO) announced that revenues and profit before income taxes for the first quarter of 2012 are expected to be lower than for the fourth quarter of 2011.

Precious metals miner Premier Gold Mines (PG.TO) said it would acquire the high-grade Cove Gold Project in Nevada for approximately $28 million.

In economic news from the euro zone, Germany's merchandise trade surplus increased more than economists expected in February, data released by the Federal Statistical Office showed. The trade surplus increased to EUR14.7 billion in February from EUR11.9 billion a year earlier. Economists were looking for a trade surplus of EUR12 billion. On a seasonally adjusted basis, the trade balance was a surplus of EUR13.6 billion.

by RTT Staff Writer

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