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TSX May Edge Up At Open On Steady Commodities - Canadian Commentary

4/24/2012 8:52 AM ET

Canadian stocks may edge up at open Tuesday as commodities were steady after Spain received strong demand for its nearly $2.6 billion auction of short-term debt, though it had to pay sharply higher interest rates. However, political uncertainty in the euro zone, which cast doubt about the region's ability to forge tough austerity measures, may cap big gains during 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 second session, dipping 158.3 points or 1.30 percent to 11,988.95.

The price of crude oil was little changed Tuesday morning as traders await more clues from the US inventories data. Today after the market hours, the API will release its report on US crude oil inventories for the weekended April 20.

The price of gold was leveling off from its two-week low Tuesday morning amid a mixed U.S. dollar.

In corporate news from Canada, base-metals miner Teck Resources (TCK_B.TO) reported adjusted first quarter profits of C$504 million or C$0.86 per share up from C$450 million or C$0.76 per share n the prior-year quarter.

Canadian Pacific Railway (CP.TO) declared an increase in its next quarterly dividend to C$0.35 per share, from C$0.30 per share. Last Friday, Canadian Pacific Railway reported first-quarter net income of C$142 million or C$0.82 per share, higher than C$34 million or C$0.20 per share a year ago.

Electronics components company Celestica Inc. (CLS.TO) reported that its first-quarter IFRS net earnings was $43.2 million or $0.20 per share, up from $30.0 million or $0.14 per share in the same quarter last year. Non-IFRS Adjusted net earnings declined to $53.6 million or $0.25 per share, down from $54.7 million or $0.25 per share in the same quarter last year. Analysts were expecting the company to report earnings of $0.21 per share

In economic news, Canadian retails sales edged down 0.2 percent to $38.9 billion in February ,recording gains in the previous month, Statistics Canada said. Lower sales were reported in 5 of 11 sub-sectors, representing 57 percent of total retail sales. In volume terms, retail sales decreased 0.6 percent.

From the euro zone, the U.K.'s public sector net borrowing rose from a year-ago level in March, data from the Office for National Statistics showed. Public sector net borrowing (PSNB) excluding temporary effects of financial interventions, was GBP 18.2 billion in March, up from last year's GBP 17.95 billion. This was also higher than GBP 12.2 billion in borrowing in February and above economists' forecast of GBP 16 billion.

by RTT Staff Writer

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