August 1, 2012 / 12:32 PM / 5 years ago

CANADA STOCKS-TSX may open higher, Fed outcome eyed

4 Min Read

Aug 1 (Reuters) - Canada's main stock index looked set to open higher, with all eyes on the outcome of a meeting where the U.S. Federal Reserve is expected to show it is ready to act against a weakening economy, but stop short of aggressive measures for now.

Top Stories

* The euro zone's manufacturing sector contracted for the 11th straight month in July as output and new orders plummeted, a business survey found.

* Talisman Energy Inc, the No.5 Canadian independent oil producer, reported a 72 percent fall in second-quarter profit on low natural gas prices and higher operating costs.

* Canadian publisher Torstar Corp reported a 68 percent fall in second-quarter profit citing weak spending by advertisers.

* The takeover of Canadian stock market operator TMX Group by a group of financial institutions has been approved by TMX's shareholders, bringing all of Canada's main securities exchanges under a single umbrella.

Market Snapshot

* Canada stock futures traded up 0.29 percent

* U.S. stock futures , , were up around 0.3 to 0.4 percent

* European shares, were up

Commodity Price Moves

* Thomson Reuters-Jefferies CRB Index : 299.74; rose 0.08 percent

* Gold futures : $1,612.7; rose 0.14 percent

* US crude : $88.66; rose 0.68 percent

* Brent crude : $105.88; rose 0.91 percent

* LME 3-month copper : $7,500.5; fell 0.79 percent

Canadian Stocks to Watch

* Catamaran Corp : The pharmacy benefit manager formerly known as SXC Health Solutions, posted a 27 percent increase in second-quarter profit, helped by its acquisition of HealthTran.

* Hemisphere GPS Inc. : The company,reported a quarterly loss on a severe drought in the United States, its biggest market.

* Canadian property and casualty insurer Intact Financial Corp reported a 90 percent jump in operating profit for the second quarter on higher underwriting and investment income.

* Genworth MI Canada : The mortgage insurer quarterly profit fell 5 percent on lower net premiums earned.

Analyst Recommendations

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

* Autocanada : Canaccord Genuity raises price target to C$15.50 from C$15 following the announcement that AutoCanada has secured a new floorplan financing agreement at more attractive interest rates.

* Inter Pipeline Fund : CIBC raises price target to C$24 from C$22, Canaccord Genuity raises price target by C$1 to C$22 after the company announced its intention to proceed with its $2.1 billion of expansion plans

* Rona Inc : Canaccord Genuity cuts to hold from buy and raises target price to C$14 from C$12 citing the potential transaction with Lowe's

* Thomson Reuters : CIBC cuts price target on its U.S. listed shares to $31.50 from $32 after the company reported second-quarter results, says Financial & Risk segment continues to face headwinds

* TransAlta Corp : National Bank Financial cuts price target to C$14.50 after the company reported loss in its second-quarter

On the Calendar

* Major Canadian economic data includes RBC Manufacturing PMI

* Major U.S. events and data includes FOMC meeting, auto sales, ADP employment report, construction spending and Markit manufacturing index

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