November 8, 2010 / 2:03 PM / 7 years ago

CANADA STOCKS-TSX may open lower after reaching 2-year high

5 Min Read

Nov 8 (Reuters) - Toronto's main stock index looked set to open lower on Monday after hitting its highest level since September, 2008 on Friday, as a firmer U.S. dollar put downward pressure on commodity prices.

Factors to Watch

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

* U.S. stock index futures fell as a rise in the U.S. dollar weighed on commodity prices and looked set to put pressure on natural resource stocks. [.N]

* European shares slipped back as investors paused for breath after a key market index hit a six-month high on Friday, with chartists suggesting that stocks now looked overbought.[.EU]

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was little changed in early trade.

* Oil prices touched two-year highs of $87.49 a barrel, before easing towards $86 a barrel as a stronger dollar prompted profit-taking. [O/R]

* Gold eased for the first time in three sessions but remained near record highs after a pick-up in the dollar dented precious metals prices. [GOL/]

* Copper slipped as the dollar rose and the market decided recent gains were overdone, but prices are expected to be underpinned by strong fundamentals over coming months. [MET/L]

Canadian Stocks to Watch

* Ensign Energy Services Inc. (ESI.TO): The oilfield services firm reported on Monday a third-quarter profit that edged past market estimates, helped by better demand for oilfield services equipment. [ID:nN0552824]

* Royal Bank of Canada (RY.TO): The bank said on Monday that it has bought Fortis Wealth Management Hong Kong Ltd as it looks to expand into emerging markets, joining a list of rivals targeting Asian markets. [ID:nTOE6A701W]

* Ventana Gold Corp. VEN.TO: The gold miner said on Monday it would commission full pilot processing at its La Bodega property in Colombia in the second quarter of 2011 with a startup capital cost of $297 million. [ID:nSGE6A70MH]

* Cameco Corp (CCO.TO): The company said on Monday its third-quarter operating profit fell 15 percent, due to higher exploration expenditure and a decrease in uranium sales volumes. [ID:nN08200319]

* European Goldfields EGU.TO: The gold producer said on Monday a public consultation is underway regarding its Environmental Impact Study in Greece, another step towards gaining a permit to develop its Olympias and Skouries projects. [ID:nLDE6A70AJ]

* Hemisphere GPS Inc. HEM.TO: A maker of GPS products for agriculture, marine and other markets, reported on Monday a wider-than-expected third-quarter loss, hurt in part by higher expenses. [ID:nSGE6A70MX]

* Brookfield Real Estate Services Fund BRE_u.TO: The fund reported on Monday lower third-quarter results, hurt by a drop in sales in the industry, but expects a steadier housing industry through 2011. [ID:nSGE6A70O8]

Analyst Recommendations

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

* Consolidated Thompson Iron Mines Ltd. CLM.TO price target raised to C$13 from C$12; keeps outperform rating at Raymond James

* Enablence Technologies Inc. (ENA.V) price target raised to C$0.60 from C$0.45; keeps market perform rating at Raymond James

* Gran Tierra Energy Inc. (GTE.TO) price target raised to C$11 from C$10; keeps strong buy rating at Raymond James

* Horizon North Logistics Inc. (HNL.TO) price target raised to C$3.20 from C$2.80; keeps outperform rating at Raymond James

* MDA (MDA.TO) price target raised to C$62 from C$58; keeps outperform rating at Raymond James

* Secure Energy Services Inc. (SES.TO) price target raised to C$5.50 from C$4.75; keeps outperform rating at Raymond James

* SNC Lavalin Group Inc. (SNC.TO) price target raised to C$64 from C$58; keeps outperform rating at Raymond James

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

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