June 29, 2012 / 12:53 PM / 5 years ago

CANADA STOCKS-TSX may rise on EU summit surprise; RIM to drag

4 Min Read

June 29 (Reuters) - Canada's main stock index was set to rise for a fourth straight session, boosted by stronger commodities, which rose after euro zone leaders agreed to measures to cut borrowing costs in Spain and Italy and recapitalise the region's banks.

Top Stories

* Euro zone leaders agreed on Friday to bend their aid rules to shore up banks and bring down the borrowing costs of stricken members like Italy and Spain, in a sign the bloc is adopting a more flexible approach to solving its two-year old debt crisis.

* Research In Motion Ltd delayed the make-or-break launch of its next-generation BlackBerry phones until next year, in a devastating setback to the once-dominant technology company whose sales are crumbling.

* Euro zone inflation held steady at a 16-month low in June, in line with expectations and keeping the door open for the European Central Bank to cut interest rates as a dramatic fall in oil prices helps take the pressure off consumer prices.

* Canadian Pacific Railway named Hunter Harrison as chief executive, months after the company's top shareholder pitched for the former CEO of rival Canadian National Railway .

* Anheuser-Busch InBev, the world's biggest brewer, will swallow the half of Grupo Modelo it does not already own for $20.1 billion in the latest in a string of deals by big brewers looking for growth in emerging markets.

Market Snapshot

* Canada stock futures traded up 1.2 percent

* U.S. stock futures , , were up around 1 percent to 1.5 percent

* European shares, were up

Commodity Price Moves

* Thomson Reuters-Jefferies CRB Index : 276.57; rose 1.75 percent

* Gold Futures : $1,580.7; rose 2 percent

* US Crude : $80.35; rose 3.41 percent

* Brent Crude : $94.28; rose 3.2 percent

* LME 3-month Copper : $7,596; rose 2.86 percent

Canadian Stocks to Watch

* Bombardier Inc. : The company said it will supply 210 double-deck commuter train cars for line A of the RER, the Greater Paris commuter network.

* EXFO Inc. : The telecom services provider posted a third-quarter loss, hurt by delays in spending by network operators.

* Thompson Creek Metals Co Inc. : The molybdenum miner said it expects second-quarter output to be hurt by a wall slough that occurred at its Idaho mine in May.

Analyst Recommendations

Following is a summary of research actions on Canadian companies reported by Reuters.

* Alexco Resource : Canaccord cuts target to C$8.50 from C$9 on valuation; rating speculative buy

* Fortis : CIBC cuts price target to C$34.50 from C$35.50 on lower earnings expectation after equity issue; NBF resumes coverage with sector perform

* Metro Inc. : Barclays reinstates with equal weight rating and price target of C$53, says company's acquisition of Statoil Fuel & Retail could add to earnings

* Progress Energy : Canaccord Genuity cuts to hold from buy after company received offer from Petronas

* Research In Motion : CIBC cuts rating after company reported steeper-than-expected quarterly loss and announced delay in launch of its BlackBerry 10 model; 10 other brokerages cut price target

On the Calendar

* Major Canadian economic data includes GDP and producer prices

* Major U.S. events and data includes personal income, Chicago PMI and Reuters/University of Michigan sentiment index

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