September 24, 2012 / 12:47 PM / 5 years ago

CANADA STOCKS-TSX may open lower, euro zone crisis in focus

4 Min Read

Sept 24 (Reuters) - Canada's resource heavy main stock index looked set to open lower on Monday, following a sharp decline in commodity prices, as investors dumped riskier assets with their focus moving back to Europe's debt crisis.

Top Stories

* German business sentiment dropped for a fifth straight month in September to its lowest since early 2010, raising fears of recession and underlining that a bold bond-buying plan laid out by the European Central Bank is no economic elixir.

* Some of the world's top financial regulators will answer questions in the European Parliament about market manipulation such as the rigging of benchmark interest rate Libor.

* Taiwan's Foxconn Technology Group, Apple's primary vendor, closed its Taiyuan plant in northern China after a personal dispute spiraled into a brawl involving 2,000 workers in a dormitory late on Sunday night, injuring 40.

* Spain will not rush to seek external aid to finance its debt, Economy Minister Luis de Guindos said on Saturday, adding that the country's banks would need 60 billion euros to clean up the toxic property assets on their balance sheets.

* The Chinese fertilizer maker Hanfeng Evergreen reported a fourth-quarter loss primarily due to a C$10.1 million impairment charge on property and equipment.

Market Snapshot

* Canada stock futures traded down 0.63 percent

* U.S. stock futures , , were down around 0.30 percent

* European shares, were down

Commodity Price Moves

* Thomson Reuters-Jefferies CRB Index : 306.53; fell 0.79 percent

* Gold futures : $1,775.5; was unchanged 0 percent

* U.S. crude : $91.87; fell 1.1 percent

* Brent crude : $110.16; fell 1.13 percent

* LME 3-month copper : $8,163; fell 1.43 percent

Canadian Stocks to Watch

* Nexen Inc. : China's ambassador to Canada warned in remarks published on Saturday against letting domestic politics drive the Canadian government's decision on whether to approve Chinese state-owned CNOOC Ltd's proposed $15.1 billion takeover of Calgary-based Nexen.

* Questerre Energy : Any further restrictions on developing Quebec's shale gas resources are unlikely to affect the company's business plans, CEO Michael Binnion said in a statement, responding to the natural resources minister who said last week she does not believe hydraulic fracturing or fracking is safe.

Analyst Recommendations

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

* Linamar Corp. : CIBC starts with sector outperformer as the auto parts maker's revenue has increased and North American production forecasts have gradually risen

* Magna International Inc. : CIBC starts with sector outperformer, says the auto parts manufacturer's 48 new facilities will leverage opportunities in markets such as China and South America

* Martinrea International Inc. : CIBC starts with sector performer rating, the auto parts maker's challenge has been to match its growth with margin improvement

* Orbit Garant Drilling Inc. : National Bank Financial cuts target to C$4 from C$5.25 on reduced gross margins assumptions after fourth-quarter results

On the Calendar

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes Chicago Fed index and Dallas Fed manufacturing index

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