September 6, 2011 / 12:22 PM / in 6 years

TSX may open lower on global growth concerns

Sept 6 (Reuters) - Toronto’s main stock index looked set to open lower on Tuesday on concerns about the health of global economy, with the United States showing signs of falling into recession and the euro zone’s sovereign debt crisis worsening.

FACTORS TO WATCH

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

* U.S. stock index futures fell, putting the S&P 500 on track for a third straight decline, on renewed fears the euro zone’s sovereign debt crisis was worsening, and tracking a slump in European stocks.

* European shares fell for a third straight session in choppy trade, led by peripheral euro zone banks, as rising debt yields and an increasingly fractious political backdrop to the region’s debt crisis spooked investors. [.EU]

* Markets in Asia were largely low, with the Nikkei average sliding 2.2 percent to a two-year closing low. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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 1.27 percent in early trade.

* Brent crude oil rose above $111 per barrel as expectations of a U.S. economic stimulus outweighed fears of recession and worries over the euro zone debt crisis. [O/R]

* Gold fell from record highs, after Switzerland’s decision to peg its currency to the euro shook financial markets and battered the franc, putting the price of bullion in Swiss francs on track for its largest daily gain in three years. [GOL/]

* Copper was slightly steadier as an earlier price correction enticed bargain hunting from top consumer China, cushioning prices, but concerns about slowing growth in the world’s top economies muddied the metal’s demand picture [MET/L]

CANADIAN STOCKS TO WATCH

* Research in Motion RIM.TO: South Africa is considering regulation on users of RIM‘S Blackberry Messenger to prevent crime, a deputy minister said in speech this week. [ID:nL5E7K61N0]

* TransCanada Corp. (TRP.TO): The pipeline operator has made another attempt to restructure how tolls are calculated on its natural gas mainline, the company’s historic foundation, as it tries to keep the huge network viable as conventional gas volumes dwindle. [ID: nN1E7811HU]

* Bombardier Inc. (BBDb.TO): The company’s train unit said it has received an order for 76 metro cars worth about $120 million from India’s Delhi Metro Rail Corp, adding to its 114-vehicle contract announced last year. [ID:nL3E7K51H4]

* SNC-Lavalin Group Inc. (SNC.TO): Canadian authorities are investigating employees of the company for possible corruption involving a $1.2 billion World Bank bridge project in Bangladesh, a bank spokesman said on Friday. [ID:nN1E7811WF]

* Precision Drilling (PD.TO): The oil-and-gas well drilling company said it will get $71 million in refund after it reached a tax reassessment agreement with the Canada Revenue Agency. [ID:nL3E7K620X]

* CAE Inc (CAE.TO): The maker of flight simulators and aviation trainers, said it received a series of military contracts totalling more than C$100 million. [ID:nL3E7K6216]

* Great Canadian Gaming Corp (GC.TO): The operator of casinos and racetracks said its CEO, Ross McLeod, had died. It named Rod Baker, its president, as interim CEO. [ID:nL3E7K61IX]

ANALYST RECOMMENDATIONS

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

* Canadian Western Bank CWB.TO rating cut to sector performer from sector outperformer at CIBC

* Com Dev International Ltd (CDV.TO) rating raised to outperform from sector perform at National Bank

* Laurentian Bank LB.TO rating raised to outperform from sector perform at National Bank; rating raised to buy from hold at TD Securities

$1= $0.99 Canadian Reporting by Karan Khemani; Editing by Frank McGurty

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