September 18, 2012 / 12:37 PM / in 5 years

CANADA STOCKS-TSX set to open lower as commodity prices fall

Sept 18 (Reuters) - Canadian stock index futures pointed to a lower open on Tuesday, as a fall in commodity prices and uncertainty about Spain’s desire for an international aid package weighed on investor sentiment.

TOP STORIES

* Spain easily sold 4.6 billion euros of short-term debt but uncertainty over whether the country will apply for an aid program and trigger a European Central Bank bond-buying program kept yields at a high level.

* European car sales fell 8.5 percent in August, for an 11th straight monthly decline, as Ford, General Motors, Fiat and mid-market brands bore the brunt of the slump in markets including Italy, France and Germany.

* German investor morale improves after ECB bond move: German analyst and investor morale picked up in September after the European Central Bank announced it was willing to buy the bonds of struggling euro zone states, suggesting the slowdown in Europe’s largest economy will be moderate.

* UK inflation dips in Aug despite higher fuel costs: British inflation ticked down in August despite a rise in oil and fuel costs, data showed, providing the Bank of England with more leeway to inject additional cash into the fragile economy.

MARKET SNAPSHOT

* Canada stock futures traded down 0.06 percent

* U.S. stock futures , , were down around 0.16 to 0.35 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 312.54; fell 0.61 percent

* Gold futures : $1,767.7; were unchanged

* US crude : $95.45; fell 1.21 percent

* Brent crude : $113.03; fell 0.67 percent

* LME 3-month copper : $8,232.75; fell 0.82 percent

ANALYST RECOMMENDATIONS

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

* Rona Inc. : Canaccord Genuity cuts target price to C$12 from C$14 and National Bank Financial cuts target price to C$13 from C$14; citing Lowe’s Cos Inc withdrawal of its proposal to acquire the home improvement retailer

* Gold metal: National Bank Financial raises Yamana Gold Inc and Aurico Gold Inc to outperform from sector perform; cites Fed’s stimulus as a factor for reduced risk of deflation and higher and longer precious metal price assumptions

* Base metals: National Bank Financial raises First Quantum Minerals Ltd price target to $24 from $23, raises Capstone Mining Corp price target to $3.50 from $3.25; says investment demand for base metal equities and base metal prices have increased significantly

ON THE CALENDAR

* No Major Canadian economic data

* Major U.S. events and data includes current account, NAHB housing market index and net capital inflows

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