January 4, 2011 / 1:48 PM / 7 years ago

CANADA STOCKS-TSX set to open higher as global stocks rally

3 Min Read

Jan 4 (Reuters) - Toronto's main stock index was set to open higher on Tuesday, matching gains by other major indexes on Monday when the Canadian market was closed, and helped by continued bullish sentiment.

Factors to Watch

* Canadian equity futures <0#SXF:> pointed to a higher open.

* U.S. stock index futures rose as optimism continued to permeate the market ahead of data on factory orders and car sales. [.N]

* European equities were at a one-week high, with London-listed commodity shares tracking strong oil and metals prices and catching up with gains elsewhere when London was closed for a holiday on Monday. [.EU]

* Japanese stocks led Asian equities higher

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.17 percent in early trade.

* Oil hovered near the highest price levels in more than two years on accelerating manufacturing activity in developed economies and expectations that U.S. crude inventories will continue to drain. [O/R]

* Gold eased in the first trading day of 2011 on the London financial markets, coming under pressure from a firmer dollar, but investor concerns over debt and inflation continued to support the metal. [GOL/]

* Copper hit a record high in London, buoyed by positive manufacturing data from around the world as the new year's trading began. [MET/L]

Canadian Stocks to Watch

* Baffinland Iron Mines BIM.TO:

- ArcelorMittal said on Tuesday it would not raise its C$550 million bid for Canadian miner, which owns vast iron ore deposits in the Canadian Arctic. [ID:nLDE7020A0]

- The junior minor's board on Monday reaffirmed its recommendation that shareholders reject Nunavut Iron's revised offer to acquire a majority stake in the company. [ID:nN03192642]

- Nunavut Iron -- backed by U.S. private equity firm Energy & Minerals Group and formed solely to bid for Baffinland -- raised its offer late Friday by 5 Canadian cents a share to C$1.45 a share, valuing the company at about C$570 million. [ID:nN03192642]

* Ivernia Inc. IVW.TO: The miner said airborne lead levels in shipping containers do not pose a public health risk and asked to meet with Australian officials to reverse a halt on lead shipments from its Magellan mine. [ID:nL3E7C40AJ ]

* Pengrowth Energy Corp. PGF_u.TO: One of the company's gas pipelines in north central Alberta exploded and caught fire on Saturday, forcing it to shut-in part of its production, the company said on Sunday. [ID:nN02145377]

Analyst Recommendations

Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]

* Baffinland Iron Mines Corp BIM.TO target price raised to C$1.40 from C$1.25; keeps market perform rating at Raymond James

* BMO (BMO.TO) price target cut to C$61 from C$65 at KBW

* TD Bank (TD.TO) rating raised to outperform from market perform at KBW

$1=$1.00 Canadian Reporting by Kishan Nair and Bangalore Newsroom; editing by Jeffrey Hodgson

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