June 18, 2012 / 12:53 PM / 5 years ago

CANADA STOCKS-TSX may open lower, Europe debt costs a concern

June 18 (Reuters) - Canada’s main stock index looked set to open lower, as initial excitement over a victory for Greece’s pro-bailout parties faded and the focus returned to investor worries about the rising cost of borrowing in Spain and Italy.

TOP STORIES

* Euro zone paymaster Germany, relieved at a narrow election victory for Greece’s pro-bailout parties, signaled it may be willing to grant Athens more time to meet its fiscal targets to avert a catastrophic euro exit.

* World leaders, relieved that pro-bailout parties won a narrow election victory in Greece, will pile pressure on Europe at the G20 summit on Monday to outline a lasting strategy to save the euro currency and end financial turmoil.

* China’s home prices dipped for the eighth straight month in May but the pace of decline eased, fanning talk that the market may be bottoming out and that recent monetary stimulus could set the stage for a rebound.

* Yamana Gold will buy Extorre Gold Mines Ltd for C$412.9 million in a cash-and-stock deal, it said.

* Fairfax Financial Holdings Ltd’s : RiverStone runoff unit will buy Brit Insurance Ltd of London from Brit Group for about $300 million to expand in the reinsurance market.

MARKET SNAPSHOT

* Canada stock futures traded down 0.08 percent

* U.S. stock futures , , were down around 0.2 to 0.3 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jeffries CRB Index : 271.39; fell 0.31 percent

* Gold Futures : $1619.5; fell -0.46 percent

* US Crude : $83.16; fell 1.04 percent

* Brent Crude : $96.68; fell 0.95 percent

* LME 3-month Copper : $7486; fell 0.33 percent

CANADIAN STOCKS TO WATCH

* Bank of Nova Scotia : The bank will record a C$600 million after-tax gain in its fiscal third quarter from the sale of its Scotia Plaza office complex in Toronto, it said as it announced the closing of the deal on Friday.

* Viterra Inc. : Swiss commodities trader Glencore International Plc said on Friday it has agreed to an extension of the Canadian government’s review of its proposed takeover of the grain handler.

* TransCanada Corp. : The scope of a planned environmental review of the Keystone XL oil pipeline from Canada could go beyond a small disputed portion in Nebraska and threatens to delay the project further, its Republican backers in Congress said on Friday.

* Air Canada : The airline won a long-running contract dispute with its mechanics and baggage handlers on Sunday, after an arbitrator opted to enforce its final offer over one put forward by the union.

ANALYST RECOMMENDATIONS

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

* Exchange Income Corp. : CIBC raises to sector outperformer from sector performer on company’s growth opportunities

* Pretium Resources : CIBC cuts target to C$18.50 from C$19, as it expects higher pre-production capital expenditures, mining costs at company’s Brucejack exploration project; rating sector performer

* San Gold : CIBC cuts price target to C$1.50 from C$2.25, after the company reported a decrease in M&I tonnage

ON THE CALENDAR

* Major Canadian economic data includes foreign investment in Canadian securities and Canadian investment in foreign securities

* Major U.S. events and data includes NAHB Index

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