TORONTO, March 30 (Reuters) - Canada's main stock market index may open higher on Tuesday as firm resource prices and a purchase in the domestic telephone directory sector puts investors in a buying mood.
But gains could be limited as investors could remain cautious ahead of upcoming U.S. housing and consumer confidence data that could show that the economy was stabilizing.
Toronto's main stock index closed higher on Monday for the first time in four sessions, jumping back above the 12,000 mark as commodity prices rallied on U.S. dollar weakness, propping up the market's heavyweight resource shares.[ID:nN29106344]
Here is some news that could affect stock prices:
YELLOW MEDIA
Yellow Media Inc, a subsidiary of Yellow Pages Income Fund (YLO_u.TO), said it agreed to buy local search and directories publisher Canadian Phone Directories Holdings Inc (Canpages) for about C$225 million ($220.6 million).[ID:nSGE62T0D9]
IRON ORE PRICES
Vale (VALE5.SA) (VALE.N) and BHP Billiton (BHP.AX)(BLT.L) will sell Japanese steelmakers iron ore priced quarterly from April 1, signaling the demise of annual fixed-price contracts that were costing miners billions of dollars in lost revenue as spot prices rocket.[ID:nSGE62T02E]
U.S. DATA
Tuesday's economic diary includes the January S&P/Case-Shiller index, due at 9:00 a.m. (1330 GMT), and March Consumer confidence data, due at 10:00 a.m. (1400 GMT). S&P/Case-Shiller's 20-city home price index is forecast to dip 0.2 percent in January from December, according to a Reuters poll, and a separate report on March consumer confidence is expected to show a monthly rise to 50.0 from 46.0.[ID:nLDE62S1GI]
U.S. CRUDE OIL
Oil consolidated above $82 a barrel on Tuesday after a near 3 percent gain in the previous session, as a weaker dollar and optimism about the global recovery kept prices close to their highest level this month.[ID:nSGE62T04R]
GOLD FIRM
Gold firmed early in Europe on Tuesday, supported by the euro holding ground against the dollar on market relief that Greece was able to raise funds after a pledge of aid from EU countries.[ID:nLDE62T0WI]
U.S./CHINA RELATIONS
President Barack Obama told China's new ambassador Washington wanted to "further develop" a positive relationship with China, the White House said in a statement on Monday. [ID:nN29118264]
VERO ENERGY
Canadian natural gas firm Vero Energy Inc (VRO.TO) expects its 2010 exit rate production to increase as much as 35 percent, and will shift its focus to drilling for light oil from natural gas, a top executive said.[ID:nWNAB4756]
CANADA CORPORATE TAX
Canada's Conservative government said on Monday it will go ahead with planned corporate tax cuts, rebuffing an opposition Liberal call to shelve the tax cuts for the time being.[ID:nN29106517]
CATALYST PAPER
Canada's Catalyst Paper Inc (CTL.TO) said it will restart the second line of pulp production at its Crofton NBSK kraft mill in early May, driven by a strong market.[ID:nSGE62S0KJ]
CANADA DOLLAR
Bank of Canada Senior Deputy Governor Paul Jenkins reiterated on Monday that the central bank has no target value for the Canadian dollar and that it would be inappropriate to forecast its future level.[ID:nTOR007333]
GAMMON GOLD
Gammon Gold Inc (GAM.TO) said it discovered two new gold and silver deposits at its key mine in Mexico and that it plans to begin drilling at its new exploration project, Guadalupe y Calvo, in April.[ID:nSGE62T0DC]
RESEARCH ROUNDUP
Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. [RCH/CA]
* Paradigm raises Teck Resources (TCKb.TO) price target to C$49 from C$42; Rating Buy
* RBC raises Reitmans (RETa.TO) to Outperform from Sector Perform
* UBS cuts Enbridge Inc (ENB.TO) to Neutral from Buy
* Raymond James raises Domtar Corp (UFS.TO) to Strong Buy from Outperform ($1=$1.02 Canadian) (Reporting by Scott Anderson; Editing by Theodore d'Afflisio)
