July 26, 2011 / 12:22 PM / 6 years ago

CANADA STOCKS-TSX may rise at open, weak dollar may lift miners

5 Min Read

Jul 26 (Reuters) - Toronto's main stock index looked set to open higher on Tuesday, led by mining shares that could benefit as a falling U.S currency made dollar-denominated commodities cheaper to buy.

Factors to Watch

* Canadian equity futures <0#SXF:> pointed to a higher open.

* U.S. stock index futures were slightly higher after earnings from Ford Motor Co (F.N) and other blue chip companies bolstered optimism about a strong earnings season[.N]

* European stocks extended their losses as results from an Italian debt auction reignited concerns over the euro zone debt crisis and weaker-than-expected results from oil major BP and Swiss bank UBS. [.EU]

* Asian markets were mostly higher, but Indian shares were slammed after the central bank stunned markets with a hefty rate increase, stoking expectations that policy rates may be peaking.

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.39 percent in early trade.

* Oil prices rose bolstered by dollar weakness as a political tussle on raising the U.S. debt ceiling persisted, though investors shrugged off fears that a U.S. default would undermine the appetite for riskier assets. [O/R]

* Gold eased as investors cashed in some gains after the previous session's record high, but the political impasse in the United States over raising the debt ceiling kept prices firmly supported above $1,600 an ounce. [GOL/]

* Copper rallied to its highest in a week on Tuesday, lifted by a sagging dollar, fund buying and a strike at the world's biggest copper mine, which focused investors on supply. [MET/L]

Canadian Stocks to Watch

* Rogers Communications (RCIb.TO): The company said profit was little changed as its leading position in Canada's wireless sector was assailed by competitors. [ID:nN1E76O1QC]

* Cenovus Energy Inc. (CVE.TO): The company's second-quarter profit rose more than three times, helped by higher refining margins and strong crude price. [ID:nL3E7IQ2E5]

* CGI Group (GIBa.TO): The technology outsourcing and consulting company, posted a 38 percent rise in third-quarter profit, helped by C$1.44 billion of new contract wins. [ID:nL3E7IQ2L2]

* Canadian National Railway Co. (CNR.TO): Canada's biggest railway reported a 4 percent increase in quarterly earnings on Monday as freight volumes rose and revenues increased across commodity groups. [ID:nN1E76K2GN]

* Royal Bank of Canada (RY.TO): The bank may spend up to C$1 billion to buy asset managers outside Canada as it aims to triple wealth management profit over four years, Bloomberg reported, citing a company executive. [ID:nL3E7IQ1L2]

Analyst Recommendations

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

* Angle Energy NGL.TO price target raised to C$13 from C$12.50; rating outperform at National Bank

* ARC Resources (ARX.TO) price target raised to C$29 from C$28 at CIBC

* Bombardier (BBDb.TO) price target cut to C$8 from C$8.50; rating overweight at JP Morgan

* Bonavista Energy Corp (BNP.TO) price target raised to C$32.50 from C$32 at CIBC

* Crescent Point Energy Corp (CPG.TO) price target cut to C$55 from C$61 at CIBC

* Enerplus Corp (ERF.TO) price target cut to C$35.50 from C$37 at CIBC

* NAL Energy NAE.TO price target cut to C$17 from C$17.50 at CIBC

* Penn West Petroleum Ltd PWT.TO price target cut to C$34 from C$35.50 at CIBC

* Petrobakken PBN.TO price target cut to C$25 from C$28 at CIBC

* Peyto Exploration & Development Corp (PEY.TO) rating raised to sector outperformer from sector performer at CIBC

* Trilogy Energy (TET.TO) price target raised to C$32 from C$26.50 at CIBC

* Wi Lan WIN.TO price target raised to C$14 from C$10; rating strong buy at Fraser Mackenzie ($1= $0.94 Canadian) (Reporting by Anil Kumar)

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