August 4, 2011 / 12:22 PM / 6 years ago

TSX may open lower, weighed down by metal prices

6 Min Read

Aug 4 (Reuters) - Toronto's main stock index looked set to open lower on Thursday with miners expected to decline along with copper and other metal prices.

Factors to Watch

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

* The Canadian dollar weakened a more than three-week low against the greenback after Japan intervened to stem the rise in the yen, boosting the U.S. dollar across the board. [CAD/]

* Wall Street equity futures fell, indicating the market may resume its downturn after snapping a seven-day losing streak ahead of a report on the labor market that will give clues on economic health. [.N]

* European shares fell further, hitting a 11-month low. Mining issues fell as the price of copper and other metals dropped on worries about the outlook for demand following recent weak economic data. [.EU]

* Asian stocks were mixed with the Nikkei coming off five-week lows after Japan intervened in currency markets to stem the yen's climb and the central bank eased monetary policy. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at [CA/MNC] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.50 percent in early trade.

* Brent oil dived a dollar to its lowest in a month as concerns over sovereign debt and economic adjustments threatened to dent fuel demand, while Japan's intervention to stem the rise in the yen boosted the U.S. currency. [O/R]

* Gold steadied, supported by Swiss and Japanese currency intervention, but remained below records hit in the previous session as risk aversion receded and attention turned back to the U.S. economy. [GOL/]

* Copper dropped to its lowest in almost a month, as slower economic growth fueled worries over metals consumption and as the dollar rose after Japanese authorities intervened in the market and sold yen. A strike at the world's largest mine limited the decline by copper. [MET/L]

Canadian Stocks to Watch

* Canadian Natural Resources Ltd. (CNQ.TO): The independent oil explorer posted a 43 percent rise in second-quarter profit and said production at its Horizon oil sands project in northern Alberta is set to resume in the third quarter. [ID:nL3E7J42J2]

* Air Canada Inc.ACa.TOACb.TO: Canada's biggest carrier reported a 55 percent rise in operating earnings, but said it expects higher fuel prices will add about C$800 million to operating costs in 2011. [ID:nL3E7J42T5]

* Sun Life Financial (SLF.TO) and Great-West Lifeco GWO.TO: The insurers reported stronger than expected second-quarter profit on Wednesday, helped by surprisingly strong market-related results. [ID:nN1E7721ZS]

* SXC Health Solutions Corp. SXC.TO: The provider of pharmacy benefits management posted a 26 percent rise in second quarter profit as its prescription claim volume almost doubled, helping it raise its full year forecast. [ID:nL3E7J430R]

* Petrominerales Ltd. PMG.TO: The oil and gas producer quarterly profit trailed analysts' expectations, hurt by lower crude output. Second-quarter profit rose to $215.7 million, or 99 cents a share, from $95.7 million, or 93 cents a share, last year. [ID:nL3E7J42L2]

*Alamos Gold Inc. (AGI.TO): The company posted a rise in second-quarter profit, as higher realized gold prices offset lower production at its flagship Mulatos mine in Mexico. [ID:nL3E7J42S8]

* Russel Metals (RUS.TO): The metals processing and distribution company posted a higher second-quarter profit on Wednesday despite soft steel prices, and boosted its dividend by 9 percent. [ID:nN1E7721PL]

* Rogers Sugar (RSI.TO): The company on Wednesday reported a lower quarterly profit hurt by lower shipments to the United States. [ID:nL3E7J344Q]

* Canaccord Financial Inc. (CF.TO): The investment bank and brokerage on Wednesday reported an increase in quarterly profit, but the results fell short of analysts' estimates as market volatility and lower trading volumes hit its core businesses. [ID:nL3E7J34TE]

* Constellation Software (CSU.TO): The company's second-quarter profit beat estimates, helped by an income tax recovery and a 28 percent uptick in revenue from the public sector. For 2011, it expects revenue of $755-$775 million and adjusted EBITDA of $155-$170 million. [ID:nL3E7J34OA]

Analyst Recommendations

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

* Avalon Rare Metals Inc (AVL.TO) price target cut to C$9.30 from C$9.5 at CIBC

* CRH Medical Corp CRM.V price target cut to C$1.25 from C$1.75; rating hold at Bloom Burton

* Fortis Inc (FTS.TO) price target cut to C$33.50 from C$34 at CIBC; price target cut to C$33 from C$33.50; rating sector perform at National Bank ($1= $0.97 Canadian) (Reporting by Shrutee Sarkar)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below