May 9, 2011 / 12:48 PM / 6 years ago

CANADA STOCKS-TSX may open higher on strong commodity recovery

May 9 (Reuters) - Toronto’s main stock index looked set to open higher on Monday as commodity prices recovered from the last week’s hefty losses, which should boost shares of mining and energy companies.

FACTORS TO WATCH

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

* U.S. stock index futures rose as commodities and the euro bounced back from last week’s hefty losses. [.N]

* European shares fell after top euro zone finance officials discussed the need for new adjustments to Greece’s aid program, with fund managers advising caution on the euro zone peripheries. [.EU]

* Markets in Asia were largely up except Nikkei, which fell after Prime Minister Naoto Kan called for the closure of Chubu Electric’s nuclear plant due to worries that a large earthquake could trigger another nuclear crisis.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 1.41 percent in early trade.

* Oil rebounded by more than $3, helped by a weaker dollar as the euro strengthened and bargain hunting by traders and investors after Brent crude lost over $16 last week. [O/R]

* Gold climbed back above $1,500 an ounce as a retreat in the dollar and a rebound in oil prices helped the precious metal recover from its biggest weekly loss since early 2009, while beleaguered silver also rose. [GOL/]

* Copper rose as a weaker dollar and upbeat U.S. employment data helped lure investors back after the commodities sell-off last week. [MET/L]

CANADIAN STOCKS TO WATCH

* Silver Wheaton Corp. SLW.TO: The company’s first-quarter profit jumped 142 percent, helped by strong silver prices, and it said it expects increased silver deliveries throughout 2011. [ID:nL3E7G91OY]

* First Quantum Minerals (FM.TO): The Africa-focused copper and gold miner posted a 37 percent rise in quarterly profit on higher copper prices. [ID:nL3E7G91LP]

* Ensign Energy Services Inc ESI.TO: The oilfield services company’s first-quarter profit doubled, helped by higher drilling activity in crude oil and liquids-rich natural gas resource plays. [ID:nL3E7G91KD]

* Teck Resources TCKb.TO: The diversified miner reached a deal with employees at its Fording River coal mine in British Columbia. [ID:nL3E7G90DK]

* Thompson Creek Metals TCM.TO: The molybdenum miner reported a higher quarterly profit above market expectations helped by higher molybdenum prices and a rise in production. [ID:nL3E7G63RI]

ANALYST RECOMMENDATIONS

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

* Pengrowth Energy Corp (PGF.TO) price target raised to C$15.50 from C$15; rating sector performer at CIBC

* Royal Host RYL.TO rating raised to sector perform from underperform at RBC

* Vermilion Energy Inc (VET.TO) price target cut to C$56.50 from C$58.50; rating sector performer at CIBC

$1= $0.96 Canadian Reporting by Kishan Nair; editing by Jeffrey Hodgson

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