February 8, 2010 / 1:40 PM / 8 years ago

CANADA STOCKS-TSX may open higher on resources, euro zone eyed

TORONTO, Feb 8 (Reuters) - Canada’s main stock market index could open higher on Monday as firm gold and energy prices and a deal by Canpotex to sell about 350,000 tonnes of potash to China’s Sinofert 0297.HK could help boost the commodity-laden index.

But persistent worries over euro zone sovereign debt could temper the gains.

Toronto’s main stock market index fought its way to a higher close on Friday, pushed up by Barrick Gold Corp (ABX.TO) and other heavyweight gold miners, after touching a three-month low earlier in the day. [ID:nN05113397]

Here is some of the news that may affect the market.

EURO ZONE WORRIES

The euro and growth-linked currencies fell on Monday as investors unwound risky trades amid growing worries about euro zone’s debt problems, dismissing assurances from European finance ministers at the weekend. [ID:nTOE61702V]

CANPOTEX DEAL

Canpotex, the export arm of Canadian potash producers, said on Monday it signed a deal to sell about 350,000 tonnes of potash to China’s Sinofert 0297.HK at competitive prices. [ID:N08104080]

FIRM OIL

Oil held above $71 a barrel on Monday, supported by a weaker U.S. dollar and as some investors viewed the previous session’s decline to a near two-month low as a buying opportunity.[nSGE61708E]

GOLD RISES

Gold rose in Europe on Monday, rebounding from Friday’s three-month low, as the dollar weakened against the euro, encouraging investors to buy into the metal at lower prices.[ID:nLDE6170V7]

POTASH CORP

Potash Corp of Saskatchewan (POT.TO) bought an additional 1.4 percent of fertilizer and specialty chemicals maker Israel Chemicals (ICL) (ICL.TA), raising its stake to 13.9 percent, ICL said on Sunday. [ID:nLDE61604R]

WI-LAN AGREEMENT

Technology licensing firm Wi-LAN Inc WIN.TO said on Monday that it has signed a letter of intent to settle a lawsuit filed against it by Canada’s No. 2 phone company, Telus Corp (T.TO).[ID:nN08135143]

VITRAN RESULTS

Canadian transportation company Vitran Corp VTN.TO posted a narrower quarterly loss, helped by a smaller loss from operations at its less-than-truckload segment.[nSGE6170HP]

RESEARCH ROUNDUP

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

* RBC cuts Shoppers Drug Mart Corp SC.TO price target to C$52 from C$56; Rating Outperform

* RBC cuts Canadian Tire Corp CTCa.TO price target to C$63 from C$64; Rating Sector Perform

* UBS raises BCE Inc (BCE.TO) price target to C$29.50 from C$29; Keeps Neutral rating

* UBS cuts Manitoba Telecom Services Inc MBT.TO price target to C$32 from C$34; Keeps Neutral rating. ($1=$1.07 Canadian) (Reporting by Scott Anderson)

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