July 29, 2013 / 12:45 PM / in 4 years

CANADA STOCKS-TSX may open lower, eye on U.S. Fed meeting, HBC shares

July 29 (Reuters) - Canada’s main stock index looked set to extend the previous session’s losses on Monday as investors turn cautious ahead of major central bank meetings later this week, of which the U.S. Federal Reserve will be most closely watched.

TOP STORIES

* Hudson’s Bay Co, operator of department store chains Lord & Taylor in the United States and The Bay in Canada, said on Monday that it would buy luxury retailer Saks Inc SKS.N for $16 per share, or $2.9 billion in cash, including debt.

* A proposed mega-merger between global ad agencies Publicis and Omnicom could bring rival accounts such as Coca-Cola and PepsiCo under one firm, underscoring the scale of the $35.1 billion deal and the potential conflicts it raises.

* U.S. drugmaker Perrigo agreed to buy Elan for $8.6 billion in a deal that will hand it tax savings from being domiciled in Ireland and royalties from a blockbuster multiple sclerosis treatment.

* Valeant Pharmaceuticals International Inc, which has offered to buy Bausch & Lomb Holdings for $8.7 billion, said it may slash 10 to 15 percent of the combined company’s workforce.

MARKET SNAPSHOT

* Canada stock futures traded down 0.04 percent

* U.S. stock futures , , were down around 0.15 percent and 0.18 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 285.196; rose 0.07 percent

* Gold futures : $1,321.7; was unchanged 0 percent

* US crude : $105.13; rose 0.41 percent

* Brent crude : $107.72; rose 0.51 percent

* LME 3-month copper : $6,872; rose 0.15 percent

CANADIAN STOCKS TO WATCH

* Migao Corp : Russia’s Eurochem said it plans to set up a joint venture with the Chinese fertilizer maker to expand its presence in the region.

* Turquoise Hill : Rio Tinto has put on hold all work on an underground expansion of the Oyu Tolgoi copper mine in Mongolia after the government said parliament will need to approve financing for the project, which is expected to cost more than $5 billion.

ANALYSTS’ RECOMMENDATIONS

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

* Alamos Gold : RBC raises target price to C$18 from C$16 after the company reported yet another strong quarterly result, following its two previous quarters when respective quarterly production records were also achieved.

* Canadian Utilities : Canaccord Genuity raises rating to buy from hold after the company reported better-than-expected second-quarter earnings.

* Celestica : Canaccord Genuity raises rating of its U.S. listed shares to buy from hold on the company’s stronger-than-expected second-quarter revenue and earnings per share and in-line earnings guidance given better-than-expected margin recovery.

* Potash Corp : CIBC cuts target price to $38 from $40 of its U.S. listed shares, says the company will face a softer second half, given no sign of China contract, weaker Indian demand, and increased competition in Latin America.

* Precision Drilling : CIBC ups target price to C$13 from C$12 after the company reported an operationally solid second quarter with stronger-than-expected EBITDA (earnings before interest, taxes, depreciation, and amortization)

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes pending home sales

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