Toronto Stocks Set to Open Higher on Golds
TORONTO (Reuters) - Toronto stocks were poised to open higher on Wednesday on the back of continued strong gold and oil stocks, but gains could be limited ahead of a key speech by U.S. Federal Reserve Chairman Alan Greenspan.
Greenspan was set to testify to Congress on the U.S. economy at 10:00 am (1500 GMT) amid hopes that he will give a positive update on the troubled economy.
"People will pay attention to what he has to say. They would like some more highlights on what the Fed thinks about the economy," said one Toronto-based trader.
"It sure looks like they (the Fed) are finished cutting rates, so nobody is expecting another rate cut."
However, investors will watch the Fed chairman for telltale signs of where the economy, that has been severely beaten in the past year, is headed.
The Toronto market showed no signs of slowing in activity on Tuesday. The Toronto Stock Exchange 300 composite index notched its third straight higher close as gold prices rose on renewed talk about U.S. military action in Iraq, as worries over corporate accounting issues began to fade.
The TSE 300 (^TSE - news) closed up 55.01 points, or 0.7 percent, at 7,567.47.
In activity on Tuesday, the gold and precious minerals group rose 4.4 percent and the oil and gas sector climbed 1.9 percent.
The market is expected to record similar gains on Wednesday, helped by the continued strong gold price. Spot gold in London was fixed at $298.60 an ounce, up from New York's close of $297.50.
"Gold is up again so I think the gold stocks will have a good time," the trader said.
Oil stocks could also show some strength in the upcoming session following Tuesday's news that Nabors Industries Inc (AMEX:NBR - news), the world's top land-based drilling contractor, was buying Enserco Energy Service Co. Inc. (Toronto:ERC.TO - news) for more than C$400 million ($252 million) to expand in Canada.
($1=$1.61 Canadian)
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