CANADA STOCKS-TSX may open higher after Spain austerity plan

May 12 (BestGrowthStock) – Toronto’s main stock index could open
higher on Wednesday after Spain unveiled tough austerity
measures that eased fears on how euro zone countries will cut
budget deficits.

Spain’s prime minister said Madrid would slash civil
service pay by 5 percent this year, freeze it in 2011 and axe
13,000 public sector jobs this year in a drive to meet European
Union deficit targets. [ID:nLDE64B0SK]

European markets also rebounded on strong quarterly results
from banks, supported by better-than-expected German GDP data.
Asian equities were mixed.

U.S. stocks (Read more about the stock market today. ) are set for a higher open ahead of Cisco’s
(CSCO.O: ) quarterly result that is expected to be better than a
year earlier. [.N]

Here is some news that could affect stock prices:

OIL DROPS

Oil fell towards $76 a barrel after the International
Energy Agency (IEA) trimmed its 2010 oil demand forecast and as
investors awaited U.S. inventory data expected to show rising
supplies.[O/R]

METALS RISE

Industrial metals rose, with copper edging up as the euro
firmed versus the dollar, but market sentiment was jittery as
mounting debt problems in the euro zone continued to worry
inventors. [MET/L]

GOLD HITS RECORD HIGHS

Gold surged to a record high as investors piled in, seeking
safety from turmoil in government bond markets and the risks of
Greece’s debt crisis spreading to other countries. [GOL/]

TALISMAN PRODUCTION VIEW

Talisman Energy Inc (TLM.TO: ), Canada’s No.4 independent oil
and gas explorer, said on Wednesday that it expects production
growth of 5 percent to 10 percent in 2011. [ID:nSGE64B0G6]

QUEBECOR OPERATING PROFIT UP

Quebecor Inc (QBRa.TO: )(QBRb.TO: ) reported a 9 percent rise
in first-quarter operating earnings on Wednesday, driven by
growth in its telecommunications segment and cost-cutting
measures in its news media business. [ID:nN12166036]

AETERNA ZENTARIS GETS FDA NOD

Drugmaker Aeterna Zentaris (AEZ.TO: ) said on Wednesday that
it expects to begin a key mid-stage trial for its bladder
cancer treatment later this year after U.S. regulators approved
the company’s investigational new drug application.
[ID:nN12266035]

SOBEYS OPENS DISCOUNT CHAIN

Canada’s No. 2 grocer Empire Co (EMPa.TO: ) said on Wednesday
that its Sobeys Inc division planned to open a new chain of
discount food stores in the Toronto area as it ramps up the
discount food fight in the area. [ID:nN12167281]

TIMMINCO LOSS NARROWS

Timminco Ltd (TIM.TO: ) reported a slimmer quarterly loss on
Tuesday due to strong demand from the chemical and aluminium
industries for silicon metal products. [ID:nN11114750]

SINO-FOREST PROFIT RISES

Sino-Forest Corp (TRE.TO: ), which owns and manages forest
plantations in China, on Wednesday posted first-quarter
earnings that topped market estimates on strong demand for wood
fiber. [ID:nSGE64B0G2]

JAGUAR MINING POSTS LOSS

Gold producer Jaguar Mining Inc (JAG.TO: ) posted a
first-quarter loss on Tuesday, hurt by higher costs, lower
grades at its Turmalina operation and the strengthening of the
Brazilian real. [ID:nSGE64A0M6]

CASPIAN ENERGY’S GOING CONCERN DOUBTS

Caspian Energy Inc (CEK.TO: ) reported a first-quarter loss
on Tuesday and said its ability to continue as a going concern
is in substantial doubt and is dependent on negotiations taking
place with Asiastar Petroleum Ltd. [ID:nWNAB9350]

BIONICHE POSTS PROFIT

Biopharmaceutical company Bioniche Life Sciences Inc
(BNC.TO: ) posted a quarterly profit on Wednesday, partly helped
by licensing revenue from its U.S. pharmaceutical partner.
[ID:nSGE64B0GR]

TSO3 LOSS WIDENS

TSO3 Inc (TOS.TO: ), which designs sterilization technology
for medical devices, on Wednesday reported a slightly wider
quarterly loss, as sales of its sterilizers fell sharply.
[ID:nSGE64B0FC]

FORTRESS PAPER PROFIT DROPS

Fortress Paper Ltd (FTP.TO: ) posted a 95 percent drop in
quarterly profit on Tuesday hurt by a foreign exchange loss.
[ID:nSGE64A0LY]

RESEARCH ROUNDUP

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.

* Canadian banks sector raised to positive from neutral at
Barclays [ID:nWNAB9504]

* B2Gold Corp (BTO.TO: ) price target raised to $2 from
$1.80; rating outperform at Raymond James

* Bank of Montreal (BMO.TO: ) rating raised to overweight
from equal-weight at Barclays

* Bank of Nova Scotia (BNS.TO: ) price target raised to $53
from $45; rating underweight at Barclays

* Baytex Energy Trust (BTE_u.TO: ) price target raised to
$36.50 from $36; rating outperform at Raymond James

* CIBC (CM.TO: ) price target raised to $78 from $64; rating
equal-weight at Barclays

* Crew Energy (CR.TO: ) price target raised to $18.25 from
$17.50; rating market perform at Raymond James

* Crombie REIT (CRR_u.TO: ) price target cut to $11 from
$11.50; rating market perform at Raymond James

* Fortress Paper (FTP.TO: ) price target raised to $35 from
$30; rating strong buy at Raymond James

* Legacy Oil Plus Gas (LEG.TO: ) price target raised to
$15.50 from $15; rating strong buy at Raymond James

* Norbord Inc (NBD.TO: ) rating cut to sell from neutral at
Goldman Sachs

* Omni-Lite Industries Canada (OML.V: ) rating raised to
strong buy from outperform at Raymond James

* RBC (RY.TO: ) rating raised to equal-weight from
underweight at Barclays

* Rock Energy (RE.TO: ) price target raised to $6.50 from
$5.50; rating overweight at Thomas Weisel

* Semafo Inc (SMF.TO: ) price target raised to $8 from $6.25;
rating overweight at Thomas Weisel

* TD Bank (TD.TO: ) price target raised to $83 from $73;
rating overweight at Barclays

* Trican Well Service (TCW.TO: ) rating raised to overweight
from market weight at Thomas Weisel

* Twin Butte Energy (TBE.TO: ) rating raised to outperform
from market perform at Raymond James

Stock Market Investing

($1=$1.02 Canadian Dollar)
(Reporting by Bangalore newsroom, editing by Savio D’Souza and
Jeffrey Hodgson)

CANADA STOCKS-TSX may open higher after Spain austerity plan