July 3, 2013 / 12:39 PM / 4 years ago

CANADA STOCKS-TSX may open lower on Chinese data and Portugal crisis

July 3 (Reuters) - Canada’s main stock index looked set to open lower on Wednesday, pulled down by disappointing services sector data from China and a political crisis in Portugal.

TOP STORIES

* China’s services sector expanded modestly in June with the vast construction industry acting as a drag on output, in a further sign that the world’s second-largest economy is losing momentum.

* The euro zone economy looks on course to stabilise in the second half of this year, even if a return to outright growth is still a while off, business surveys suggested.

* Two more Portuguese ministers from the junior ruling coalition party were ready to resign, local media said, deepening turmoil that could trigger a snap election and derail Lisbon’s exit from an EU/IMF bailout.

* A federal judge has approved HSBC Holdings Plc’s record $1.92 billion settlement with federal and state investigators of charges that it flouted rules designed to stop money laundering and thwart transactions with countries under U.S. sanctions.

* Toyota Motor Corp, said it was recalling around 185,000 vehicles globally, including the Yaris compact, owing to a glitch in the electric power steering system that could make the steering heavier.

MARKET SNAPSHOT

* Canada stock futures traded down 0.4 percent

* U.S. stock futures , , were down around 0.54 percent to 0.47 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 282.0187; rose 0.64 percent

* Gold futures : $1,250; rose 0.51 percent

* US crude : $101.62; rose 2.03 percent

* Brent crude : $105.38; rose 1.33 percent

* LME 3-month copper : $6,937; rose 0.39 percent

ANALYSTS’ RECOMMENDATIONS

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

* Bonterra Energy : NBF resumes coverage with outperform, says the company’s capital budget is expected to provide for the drilling of about 30 net Cardium wells in West Central Alberta and deliver a stable average production base of 12,000 boe/day.

* Brigus Gold : BMO cuts price target to C$0.70 from C$0.85, says while the the company’s resource update is positive to net present value, this is offset by the decline in the spot gold price.

* Coastal Energy : CIBC cuts target to C$19 from C$20, says Bua Ban North is a good asset which can provide significant free cash flow but management must improve its market disclosure.

* Elemental Minerals Ltd : NBF cuts price target to C$0.64 from C$1 on valuation.

* Kirkland Lake Gold : BMO ups target to C$19 from C$17, expects the company to generate sufficient cash at the spot gold price to fund its capital program internally.

ON THE CALENDAR

* Major Canadian economic data includes exports, imports and trade balance.

* Major U.S. events and data includes initial and continuing claims, mortgage index, ADP national employment and ISM non-manufacturing index

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