November 4, 2010 / 1:07 PM / 7 years ago

RPT-CANADA STOCKS-TSX may open higher; Fed overshadows Potash

(Repeats with new headline)

Nov 4 (Reuters) - Toronto’s resource heavy main stock index looked set to open higher on Thursday after commodity prices rallied on the U.S. Federal Reserve’s plans for more quantitative easing, which overshadowed Canada’s decision to block a bid for Potash Corp. (POT.TO)

FACTORS TO WATCH

* Potash Corp. (POT.TO): Canada blocked BHP audacious US$39 billion bid for Potash and left little room for a modified offer, throwing the spotlight on how the world’s largest miner can find new avenues for growth.[ID:nN03272751]

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

* The Canadian dollar extended gains to hit a near three-week high against the U.S. dollar as investors dumped the greenback after the U.S. Federal Reserve launched a new bout of quantitative easing. [CAD/]

* U.S. stocks index futures rose as more monetary stimulus from the U.S. Federal Reserve aimed at boosting the ailing economy fueled investor risk appetite. [.N]

* European shares rose to their highest level since April after the U.S. Federal Reserve unveiled a plan to buy assets, while BHP Billiton jumped after Canada blocked its Potash bid. [.EU]

* Asian stocks rose to their highest levels since June 2008, with Nikkei gaining 2.2 percent after its 7-week lows.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 1.76 percent in early trade.

* Oil rose for a fourth day, hitting fresh six-month highs near $86 a barrel, after the dollar fell following a U.S. Federal Reserve decision to pump more money to stimulate the economy of the world’s top oil user. [O/R]

* Gold rose 1 percent in Europe, lifted by the dollar’s slide to 11-month lows versus a basket of currencies after the Federal Reserve said it would inject a further $600 billion into the financial markets. [GOL/]

* Copper climbed after the U.S. Federal Reserve took steps to boost growth and demand in the world’s largest economy and the market tried to factor in higher energy costs in top consumer China. [MET/L]

CANADIAN STOCKS TO WATCH

* Suncor Energy Inc. (SU.TO): The energy company said on Thursday its third-quarter net profit rose 10 percent, helped by additional upstream production and higher benchmark oil prices. [ID:nSGE6A30C2]

* Canadian Natural Resources Ltd (CNQ.TO): The independent explorer reported on Thursday a third-quarter profit that beat analysts’ expectations and continued to see strong production growth at its projects. [ID:nSGE6A30FZ]

* BCE Inc. (BCE.TO): The communications company reported on Thursday a dip in quarterly profit, even as it recorded a record number of wireless activations. [ID:nN04175100]

* HudBay Minerals (HBM.TO): The miner reported on Wednesday third-quarter profit which fell more than 40 percent on lower sales volumes, higher taxes and exploration expenses. [ID:nN03127375]

* Kinross Gold (K.TO): The miner reported a third-quarter profit on Wednesday on the back of big gains in the price of bullion, and raised its 2010 production forecast. [ID:nN03258303]

* Yamana Gold (YRI.TO): The miner said on Wednesday its quarterly profit nearly doubled, helped by a stronger gold price, and it raised its dividend by 200 percent. [ID:nN03139237]

* Air Canada ACa.TO ACb.TO: The airliner reported on Thursday a nearly five-fold rise in operating profit on the back of increased passenger traffic. [ID:nSGE6A30H3]

* Enbridge Inc. (ENB.TO): The pipeline company shut down one of its major oil pipelines in the U.S. Midwest for the second time in two months to investigate high-pressure alarms, the company said on Wednesday. [ID:nN03151282]

* Alamos Gold Inc. (AGI.TO): The miner reported on Thursday quarterly profit which rose 38 percent, helped by a one-time gain, and forecast increased production for the fourth quarter. [ID:nSGE6A30GM]

* Katanga Mining Ltd. (KAT.TO): The copper and cobalt producer reported on Thursday its fourth straight quarterly profit, helped by increased copper and cobalt sales. [ID:nSGE6A30I9]

* Cott Corp. (BCB.TO): The soft-drink maker on Thursday reported a 40 percent drop in third-quarter net profit on expenses related to its Cliffstar acquisition. [ID:nN03115597]

ANALYST RECOMMENDATIONS

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

* Aecon Group (ARE.TO) rating cut to outperform from strong buy at Raymond James

* Amerigo Resources Ltd. (ARG.TO) target price cut to C$1 from C$1.10; keeps market perform at Raymond James

* Calfrac Well Services Ltd. (CFW.TO) price target raised to C$35 from C$31.50; keeps outperform rating at Raymond James

* Canaccord Financial Inc CF.TO price target raised to C$14 from C$13 at KBW

* Daylight Resources Trust DAY.TO price target raised to C$12 from C$11.50; keeps outperform rating at Raymond James

* Denison Mines (DML.TO) rating cut to market perform from outperform at Raymond James

* Dundee Real Estate Investment Trust (D_u.TO) target price raised to C$32.25 from C$30; keeps outperform rating at Raymond James

* Killam Properties KMP.TO target price raised to C$11 from C$10.75; at Raymond James

* MAG Silver (MAG.TO) rating cut to market perform from outperform at Raymond James

* North American Energy Partners Inc (NOA.TO) rating raised to outperform from market perform at Raymond James

* Taseko Mines (TKO.TO) target price cut to C$6.50 from C$7.50; keeps outperform rating at Raymond James

* Ur Energy (URE.TO) rating cut to market perform from outperform at Raymond James

* Westjet Airlines (WJA.TO) target price raised to C$13.75 from C$12.75; keeps market perform rating at Raymond James

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

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