August 30, 2012 / 12:27 PM / 5 years ago

CANADA STOCKS-TSX may open lower, banks in focus

Aug 30 (Reuters) - Toronto’s main stock index looked set to open lower, tracking global markets, on uncertainty over the next moves by central banks and the outlook for the global economy.

Financial stocks will be in focus after three of Canada’s major banks reported strong quarterly results.

TOP STORIES

* Royal Bank of Canada profit rose 73 percent in the fiscal third quarter, topping estimates on the back of higher loan volumes and fixed-income trading results, prompting the bank to unexpectedly raise its quarterly dividend.

* Toronto-Dominion Bank’s quarterly profit rose 14 percent, driven by a sharp jump in trading-related revenue, and the bank raised its quarterly dividend.

* The Canadian Imperial Bank of Commerce’s quarterly profit rose 42 percent, driven by higher lending volumes, the No. 5 bank said.

* Britain’s Barclays has picked softly spoken retail boss Antony Jenkins as its new chief executive to fill the shoes left by Bob Diamond, the colorful American investment banker who resigned after a rate-rigging scandal.

* China is prepared to buy more EU government bonds amid a worsening European debt crisis that is dragging on the world economy, Premier Wen Jiabao said, in the strongest sign of support for its biggest trading partner in months.

MARKET SNAPSHOT

* Canada stock futures traded down 0.32 percent

* U.S. stock futures , , were down around 0.3 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 307.24; was up 0.04 percent

* Gold futures : $1,655.1; fell 0.3 percent

* US crude : $95.46; fell 0.03 percent

* Brent crude : $113.28; rose 0.66 percent

* LME 3-month copper : $7,620.5; rose 0.6 percent

CANADIAN STOCKS TO WATCH

* Bank of Nova Scotia : The bank agreed to buy ING Groep’s Canadian online bank for C$3.1 billion, taking advantage of a rare opportunity to grab market share in the country’s crowded retail banking space.

* Excellon Resources Inc. : Mexican police, soldiers and some miners breached a picket line at a silver mine owned by the mining company on Wednesday, but striking miners vowed to continue their near two-month stoppage.

ANALYST RECOMMENDATIONS

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

* Alimentation Couche-Tard Inc : NBF ups target to C$55 from C$54 on expectations of growth in earnings ahead of its results on Sept. 5

* Banro Corp. : CIBC cuts price target to C$7 from C$8, says initial production at Twangiza targeted at 8,000 oz. per month versus CIBC’s forecast of 10,000 oz. per month

* Fairborne Energy Ltd. : CIBC cuts price target to C$2 from C$2.25, says it will be hard to grow production in constrained budget unless there is a material improvement in gas prices

* Teranga : SocGen starts with hold and sets a price target of C$2.21, says company is focused on growth through exploration and regional opportunities, but short mine life remains a concern

ON THE CALENDAR

* Major Canadian economic data includes current account deficit

* Major U.S. events and data includes initial jobless claims and personal income

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