August 18, 2011 / 12:29 PM / 6 years ago

CANADA STOCKS-TSX may open lower on global growth worry

3 Min Read

Aug 18 (Reuters) - Toronto's main stock index looked set to open lower on Thursday as commodity prices declined on heightened worries about sluggish global economic recovery, prompting investors to cut exposure to riskier assets.

Factors to Watch

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

* U.S. stock index futures sank as a gloomy forecast on global growth and worries about the European debt crisis shook up investors ahead of data on jobless claims and consumer prices. [.N]

* European shares extended losses, with Germany's DAX falling about 4 percent. [.EU]

* Japan's Nikkei fell for a second straight day and dropped below the closely watched 9,000 line, hurt by the yen's persistent strength and fears the United States might be heading for another recession. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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 1.02 percent in early trade.

* Brent crude fell to below $110, dropping from two-week highs, with worries about euro zone debt problems and slower global growth outlook pressing on prices. [O/R]

* Gold rallied back towards record highs above $1,800 an ounce, driven by unease over the lack of a solution to the European debt crisis and sluggish growth in the developed world [GOL/]

* Copper prices sagged as the euro zone debt crisis and worries about a slowdown in top consumer China reinforced gloomy growth and demand prospects, while a higher dollar also undermined sentiment. [MET/L]

Canadian Stocks to Watch

* Thomson Reuters Corp. (TRI.TO): The provider of information and news to financial, legal and accounting professionals bought Chicago-based crop forecaster Lanworth Inc., expanding its commodity analytics group with a company that was an early leader in the use of satellite imagery to predict crop size. [ID:nN9E7IJ004]

* JDS Uniphase Corp. JDU.TO: The provider of broadband and optical communication components forecast weak first-quarter revenue on macro-economic challenges and inventory corrections but said booking trends were encouraging. [ID:nL3E7JH3FA]

* WiLan WIN.TO. The technology licensing company is making an unsolicited all-cash offer to buy fellow patent company Mosaid MSD.TO for about C$480 million. [ID:nN1E77G1WU]

Analyst Recommendations

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

* ATS Automation Tooling Systems Inc (ATA.TO) price target cut to C$7.50 from c$8.50 at CIBC ($1= $0.99 Canadian) (Reporting by Shrutee Sarkar)

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