July 30, 2012 / 12:57 PM / 5 years ago

CANADA STOCKS-TSX may open lower, ECB and Fed eyed

July 30 (Reuters) - Canadian stock index futures pointed to a slightly lower open on Monday, with investors still hoping for policy action in Europe after Mario Draghi last Thursday vowed that the European Central Bank will do whatever it takes to preserve the euro.

TOP STORIES

* U.S. stock index futures dipped, indicating the S&P 500 may give back some gains from the prior two sessions that pushed the benchmark index to its highest close since May 3.

* HSBC’s underlying profit dipped 3 percent from a year ago to $10.6 billion as Europe’s biggest bank set aside $2 billion to cover U.S. law enforcement and regulatory costs and to compensate UK customers for mis-selling.

* Italy’s benchmark 10-year borrowing costs eased below 6 percent at auction as rising expectations of bolder policy moves to counter the euro zone’s debt crisis boosted demand for debt issued by the bloc’s most vulnerable members.

* Spain slid deeper into recession in the second quarter as a tough new round of austerity to head off the budget crisis that threatens the euro took effect both on overall demand and the price consumers have to pay for goods.

* Second-quarter profit at Canadian Oil Sands Ltd, which owns the largest stake in Syncrude Canada Ltd, sank 71 percent due major plant maintenance that reduced production, lower oil prices and higher operating costs.

MARKET SNAPSHOT

* Canada stock futures traded lower

* U.S. stock futures , , were down around 0.15-0.27 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 299.65; rose 0.02 percent

* Gold futures : $1,617.3; fell 0.04 percent

* US crude : $89.56; fell 0.63 percent

* Brent crude : $105.79; fell 0.64 percent

* LME 3-month copper : $7,522.25; fell 0.57 percent

CANADIAN STOCKS TO WATCH

* Enbridge Inc. : The company prepared on Sunday to replace part of a pipeline that leaked more than 1,000 barrels of oil in a Wisconsin field, shutting down a key conduit from Canada and provoking fresh ire from Washington.

* Fibrek Inc. : The specialty pulp maker said it was temporarily halting production at its market pulp mill in Saint-Félicien, Quebec to carry out repairs.

* U.S. Silver Corp : The company urged shareholders to reject Hecla Mining Co’s hostile bid for the company, calling it “inadequate” and “highly opportunistic,” and asked them to vote in favor of RX Gold & Silver Inc’s offer.

ANALYST RECOMMENDATIONS

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

* Barrick Gold : Credit Suisse cuts target of its U.S.-listed shares to $46 from $55 on valuation due to higher capex and long term cash costs, but rates outperform due to focus on FCF and high-return projects

* Domtar Corp. : JP Morgan raises to overweight from neutral rating on valuation, says going ahead there is limited downside in pulp prices

* Eldorado Gold : RBC cuts price target of its U.S.-listed shares to $16 from $18, CIBC cuts target to $18 from $20 following disappointing second-quarter results and full year outlook

* TransCanada Corp. : NBF cuts price target to C$42.50 from C$43 and rates underperform on lower-than-expected second quarter earnings and weak earnings outlook

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes Chicago Midwest and Dallas Fed Mfg Index

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