CANADA STOCKS-TSX may open up on commodities; oil spill a worry

May 3 (BestGrowthStock) – Firmer commodity prices could lift
Toronto’s main stock index on Monday, but gains could be
limited by concerns about the oil spill in the U.S.

Mining stocks could be in focus after the Australian
government said it planned to slap a 40 percent tax on mining
profits as commodity prices soar.

With no economic data set for release, investors will keep
a tab on Wall Street, which is also set for higher open on news
that UAL Corp (UAUA.O: ) will buy Continental Airlines Inc
(CAL.N: ) to form the world’s largest airline. [.N]

European shares edged lower on concerns that a massive
bailout package for Greece may face political obstacles and on
doubts that Athens can implement tough austerity measures
agreed in exchange for aid.

Asian equities fell after China on Sunday increased the
amount that lenders must keep in reserve at the central bank as
it struggles to temper inflationary pressures, its third such
move this year.

Markets in the United Kingdom, China and Japan are among
those that are closed today.

Here is some news that could affect stock prices:

OIL UP

Oil edged above $86 a barrel, gaining for a fourth session,
balanced by concerns about the oil spill in the United States
and doubts about a massive bailout package for Greece. [O/R]

GOLD HITS HIGH

Gold rose to a 2010 high in Europe, with prices keeping
their safe-haven cachet, as a 110 billion-euro aid plan for
Greece failed to quell wider concerns on euro zone debt. [GOL/]

C$ RISES VS US$

Canada’s dollar rose against the U.S. currency on Monday as
commodity prices were higher and U.S. stock index futures
signaled strength at the open, suggesting investors were
willing to take on more risk. [CAD/]

AUSTRALIA MINING TAX

Australian mining shares tumbled on Monday after the
government slapped a 40 percent tax on mining profits to fund a
boost to workers’ incomes in an election year, sparking
warnings that huge new investments could be lost.
[ID:nSGE64200]

UAL TO BUY CONTINENTAL

UAL Corp (UAUA.O: ), parent of United Airlines, said it will
buy Continental Airlines Inc (CAL.N: ) for about $3.17 billion in
stock, forming the world’s largest carrier and further
shrinking the U.S. airline industry. [ID:nN02143069]

TRANSCANADA’S KEYSTONE LINE UNHURT

Canada’s energy sector will have to wrestle with a period
of oil pipeline overcapacity, but TransCanada Corp’s (TRP.TO: )
new Keystone system won’t be affected, executives said on
Friday. [ID:nN29127454]

GENERAL GROWTH VOTE ON BIDS

General Growth Properties Inc’s (GGP.N: ) board was expected
to have voted this weekend to choose between rival
recapitalization offers from Brookfield Asset Management
(BAMa.TO: ) and Simon Property Group Inc (SPG.N: ), a source
familiar with the situation said on Saturday. [ID:nN01168578]

BARRON’S ON GOLDCORP

Shares in miner Goldcorp (G.TO: ) could climb since they have
been trading at 1.5 times net asset value over the past year,
compared to the industry average of 1.75 times, Barron’s
reports. [ID:nN02168817]

BELLAMONT UPS PRODUCTION VIEW

Oil and gas company Bellamont Exploration Ltd (BMXa.V: ) said
it raised its year-end production outlook by 8 percent, citing
a C$5 million ($4.95 million) increase in its 2010 capital
budget and successful drilling so far in the year.
[ID:nSGE6420FN]

KINGSWAY COURT RULING

Kingsway Financial Services Inc (KFS.TO: ) said Pennsylvania
Insurance Department has filed a notice of appeal to
Pennsylvania Supreme Court relating to the Commonwealth Court
of Pennsylvania’s decision to dismiss all claims against
Kingsway and Kingsway America Inc challenging the disposition
of Lincoln General Insurance Co. Kingsway said it will oppose
the appeal. [ID:nWNAB5092]

BNS GETS PUERTO RICO BANK

A unit of The Bank of Nova Scotia (BNS.TO: ), Scotiabank de
Puerto Rico, acquired the operations of R-G Premier Bank of
Puerto Rico. The acquisition was $5.6 billion in assets
including $5.3 billion in loans and $2.2 billion in deposits.
[ID:nN30211197]

RESEARCH ROUNDUP

Following is a summary of research actions on Canadian
companies reported by Reuters on Friday. [RCH/CA]

Note: All values in RESEARCH ROUNDUP in Canadian currency,
unless otherwise stated.

* Breakwater Resources (BWR.TO: ) price target raised to
$0.60 from $0.50; rating outperform at Raymond James

* Parex Resources (PXT.V: ) rating raised to outperform from
market perform at Raymond James

* RioCan REIT (REI_u.TO: ) rating raised to outperform from
market perform at Raymond James

Stock Market Investing

($1=$1.01 Canadian)
(Reporting by Bangalore newsroom, editing by Savio D’Souza and
Jeffrey Hodgson)

CANADA STOCKS-TSX may open up on commodities; oil spill a worry