July 7, 2009 / 12:42 PM / in 8 years

CANADA STOCKS-TSX may open higher on firm oil, metals

TORONTO, July 7 (Reuters) - Toronto's main stock index could open higher on Tuesday as commodity prices recovered from Monday's steep drop, but the gain could be capped by nagging concerns about the global economic recovery.

The euro rose broadly, world stocks turned higher, and energy and commodity prices rebounded on Tuesday after upbeat German manufacturing data helped to inject optimism about a global economic recovery. [ID:nL7646094]

But S&P 500 and Nasdaq futures turned negative, while Dow futures pared gains on Tuesday, as investors turned anxious about the potential strength of an economic recovery ahead of earnings season. [nN07547571]

On Monday the S&P/TSX composite index .GSPTSE closed 255.67 points, or 2.5 percent, lower at 10,027.43.

Below is some news that could affect the market:

MANULIFE FINANCIAL CORP (MFC.TO)

Manulife Financial Corp, Canada's top life insurer, said late on Monday its Manulife Financial Capital Trust II unit would issue C$1 billion ($862 million) of notes for Tier 1 capital, strengthening its balance sheets.[ID:nN06286715]

MAGNA MGa.TO

Canadian auto parts supplier Magna has delayed to July 14 a board meeting where it was to approve its takeover of carmaker Opel from bankrupt U.S. parent General Motors, a source with knowledge of the matter said on Monday. [ID:nL6323825]

OIL RISES

Oil rose above $64 a barrel on Tuesday, after falling for four consecutive sessions on doubts over global economic recovery and potential improvement in demand for fuel.[ID:nSP379393]

GOLD, BASE METALS

Gold inched higher in Europe on Tuesday as the dollar pared gains against a basket of currencies, with traders awaiting new direction from the foreign exchange markets after a meeting of G8 leaders later this week..[ID:nL7678488]. Most base metals were up.[ID:nL711666]

NORTEL NETWORKS NRTLQ.PK

U.S. private equity firm MatlinPatterson Global Advisors confirmed on Monday that it plans to put forward a comprehensive proposal to reorganize the businesses of bankrupt Canadian telecom equipment maker Nortel Networks.[ID:nN06526486]

GREAT LAKES HYDRO INCOME FUND GLH_u.TO

Great Lakes Hydro Income Fund will pay C$945 million ($815 million) for its biggest shareholder's Canadian power operations in a deal aimed at positioning itself for a conversion into a corporation by 2011, it said on Monday.

CANADA BROADCAST REGULATOR

Canada's broadcast regulator signaled support on Monday for having the country's cable and satellite providers pay local broadcasters for programming they now get for free.[ID:nN06284442]

AIR CANADA ACa.TO, WESTJET AIRLINES LTD (WJA.TO)

Canada's two largest airlines, WestJet Airlines Ltd and Air Canada said on Monday their planes flew less full in June amid a recession-driven slowdown in air travel.[ID:nN06268767]

GLOBE AND MAIL

Workers at Canada's Globe and Mail newspaper voted in favor of a five-year labor contract that freezes wages for the next two years, reflecting the distressed state of the industry, the union said on Monday.[ID:nN06282464]

CANADA RESEARCH

* Barclays cuts Petro-Canada PCA.TO price target to C$63 from C$64; rating overweight.

* Barclays cuts Suncor Energy (SU.TO) price target to C$49 from C$50; rating overweight.

* Raymond James cuts Canadian Pacific Railway (CP.TO) price target to C$42.75 from C$48; rating market perform.[ID:nBNG393551]

For more research, please see: [CA-RCH]

$1=$1.15 Canadian Reporting by Nina Lex; Editing by Jeffrey Hodgson

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