May 8, 2012 / 12:42 PM / 5 years ago

CANADA STOCKS-TSX may open lower as euro zone uncertainty weighs

May 8 (Reuters) - Canada’s main stock index looked set to open lower on Tuesday, as worries over the political uncertainty in the euro zone crimped investor appetite and pushed commodities lower.

TOP STORIES

* Greece’s Left Coalition party will get an historic chance to form a government opposed to the country’s EU/IMF bailout, after the mainstream conservatives failed to cobble together a coalition following shock election results.

* HSBC beat expectations with an underlying first-quarter profit of $6.8 billion as Europe’s biggest bank saw a rebound in investment banking, growth in Asia and a fall in U.S. bad debts.

* Franco-Nevada Corp said its first-quarter profit more than doubled, largely driven by high bullion prices.

* Yellow Media Inc posted a C$2.9 billion net loss in the first quarter on an impairment charge and the debt-ridden company began a scramble to refinance debt set to mature from this year.

* The Bank of Canada’s low inflation mandate does not prevent it from acting, in exceptional circumstances, to protect overall financial stability, a senior official said on Monday.

MARKET SNAPSHOT

* Canada stock futures traded down 0.57 percent

* U.S. stock futures , , were down around 0.13-0.21 percent

* European shares, inched lower

COMMODITY PRICE MOVES

* Thomson Reuters-Jeffries CRB Index : 296.43; fell 0.35 percent

* Gold Futures : $1630.1; fell 0.55 percent

* US Crude : $97.37; fell 0.58 percent

* Brent Crude : $112.38; fell 0.69 percent

* LME 3-month Copper : $8172.75; fell 0.03 percent

CANADIAN STOCKS TO WATCH

* Air Canada : The airline and the union representing its 3,000 pilots will start 10 days of talks on Thursday under a Canadian government-appointed arbitrator, according to an internal pilots memo, in a final effort to agree on a new labor contract.

* Uranium One Inc. : The uranium producer’s on Monday reported a drop in quarterly profit as lower realized uranium prices outweighed higher sales volumes.

* Alexco Resource Corp. : The miner’s quarterly profit fell 62 percent, hurt by lower metal prices.

* Avalon Rare Metals Inc. : The miner said on Monday it expects delays in a feasibility study on its flagship Nechalacho rare earth project in Canada’s Northwest Territories, as it needs more time to complete metallurgical studies.

ANALYST RECOMMENDATIONS

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

* Tim Hortons : Canaccord Genuity ups target to C$55 from C$52, ahead of the company’s 1st-quarter results; rating hold

* Enbridge Income Fund : National Bank Financial raises target to C$25 from C$24.50 on strong Q1 earnings; rating outperform

* Cineplex Inc : NBF raises price target to C$28.50 from C$28; and expects the company to increase its dividend

* Ensign Energy Services : CIBC cuts to sector performer from sector outperformer on valuation

* Inmet Mining : CIBC cuts price target to C$68 from C$84 to reflect added financing and execution risks associated with the Cobre Panama project

ON THE CALENDAR

* Major Canadian economic data include housing starts

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