September 23, 2011 / 12:27 PM / 6 years ago

TSX set to open lower on commodity drop

(Reuters) - Toronto’s main stock index was set open lower on Friday, extending the previous day’s heavy losses, as investors continue to liquidate risky assets on concerns that a struggling global economy will dent demand.

FACTORS TO WATCH

Canadian equity futures pointed to a lower open.

U.S. stock index futures fell as talk of a Greece default gained pace and a day after markets spiraled downward on deepening worries about global economic stagnation. .N

European shares fell after a fresh pledge of support from leading global economies to shore up the financial sector failed to placate markets, leaving them on course for a fifth straight month of losses. .EU

Asian markets were largely down on fears of renewed recession in the developed world.

COMMODITY PRICE MOVES

The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 1.50 percent in early trade.

Brent crude oil turned lower to hit a six-week low near $103 a barrel after an initial rally faded, on concern about the outlook for the economy and oil demand. <O/R>

Gold prices fell further, dropping to a 6-week low, weakening in tandem with a sharp sell-off across commodities as the dollar pared falls and traders cited selling in the precious metal to cover losses in other asset classes. <GOL/>

LME lead fell 5 percent as investors continued to liquidate risky assets on concerns that a struggling global economy may dent demand. <MET/L>

CANADIAN STOCKS TO WATCH

Strategic Oil & Gas Ltd. SOG.V: The junior oil and gas company said its CFO Jim Screaton has resigned to pursue other opportunities.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters. <RCH/CA>

Amica Mature Lifestyles ACC.TO coverage started with outperform; price target of C$9.25 at National Bank

Keegan Resources KGN.TO price target cut to C$12 from C$14 at CIBC

MBAC Fertilizer MBC.TO price target raised to C$5.75 from C$5.50 at National Bank

Orbit Garant Drilling Inc (OGD.TO) price target cut to C$7 from C$7.60 at National Bank

Reporting by Anil Kumar; Editing by Jeffrey Hodgson

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