November 28, 2011 / 1:18 PM / 6 years ago

TSX may open up as commods rise on euro zone hopes

4 Min Read

Nov 28 (Reuters) - Toronto's main stock index was set to open higher on Monday as commodity prices rose on hopes that Europe will unveil fresh measures to tackle the region's growing debt crisis.

Factors to Watch

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

* U.S. stock index futures jumped on optimism over the latest round of proposals out of Europe to corral the growing euro zone debt crisis. [.N]

* European shares jumped, led by bank and insurance stocks on hopes euro zone leaders will unveil fresh measures to fight the region's debt crisis, ahead of a summit next week. [.EU] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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, rose 1.54 percent in early trade.

* Oil rose sharply, with U.S. crude futures climbing above $100 per barrel as concerns of a supply disruption from the Middle East overshadowed worries over oil demand growth and a worsening economic outlook for the euro zone. [O/R]

* Gold rose above $1,700 to its highest level in a week, helped by a strong euro and gains in equity markets, and hopes Europe will unveil fresh measures to tackle the region's growing debt crisis. [GOL/]

* Copper rallied to its highest in a week amid hopes about Europe, although the metal remained vulnerable ahead of European bond auctions later in the day. [MET/L]

Canadian Stocks to Watch

* Cameco Corp (CCO.TO): The uranium miner said it is backing out of a bidding war for Hathor Exploration HAT.TO after Anglo-Australian miner Rio Tinto sweetened its bid to C$654 million. [ID:nN1E7AR0BF]

* Cominar Real Estate Investment Trust (CUF_u.TO): The company plans to buy units of Canmarc REIT CMQ_u.TO it does not already own, in a deal that values the latter at C$1.07 billion. [ID:nL4E7MS1XG]

* Bombardier Inc. (BBDa.TO) (BBDb.TO): The company's train unit received a contract to make railway equipment for India's Mumbai Railway Vikas Corp. [ID:nL4E7MS1WA]

* Imperial Oil Ltd. (IMO.TO): The company and Ottawa have resumed talks over a financial support package for the Mackenzie gas pipeline in the Far North, but Imperial would not say if it was any closer to proceeding with the C$16.2 billion project.[ID:nN1E7AO1GI]

Analyst Recommendations

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

* Advantage Oil & Gas (AAV.TO): coverage started with outperform; price target C$7.75 at National Bank Financial

* Arcan Resources Ltd ARN.V: rating cut to sector performer from sector outperformer; price target cut to C$7.25 from C$8 at CIBC

* Arianne Resources Inc (DAN.V): coverage started with outperform; price target C$1.39 at National Bank Financial

* Avalon Rare Metals Inc (AVL.TO): coverage started with buy rating; price target C$6 at Citigroup ($1= $1.03 Canadian) (Reporting By Chandra Ramarathnam)

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