May 10, 2011 / 12:31 PM / 6 years ago

CANADA STOCKS-TSX may open higher on strong Chinese data

May 10 (Reuters) - Toronto main stock index looked set to open higher on Tuesday after strong Chinese trade data lifted optimism about the pace of economic recovery and demand for raw materials.

FACTORS TO WATCH

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

* U.S. stock index futures rose as strong Chinese trade data eased concerns of a slowdown in the world's second-largest economy and pointed to strong global demand. [.N]

* European shares rose, with higher metals prices boosting heavyweight miners as strong Chinese trade data lifted optimism about the pace of economic recovery. [.EU]

* Markets in Asia were mixed, with Nikkei edging up on a report that Toyota Motor Corp's output will likely return to normal two or three months earlier than expected.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.32 percent in early trade.

* Oil prices shed more than 1 percent amid higher margins for oil futures trade but unexpectedly high Chinese crude imports were supportive. [O/R]

* Gold was set for a third daily rise, after a retreat in the dollar helped reverse earlier losses, while concern about Greece's debt crisis was expected to insulate the price from any severe declines. [GOL/]

* Copper climbed, as robust China trade figures burnished demand expectations for the metal used in power and construction offsetting news that headline imports in April fell. [MET/L]

CANADIAN STOCKS TO WATCH

* PetroBakken Energy Ltd. PBN.TO: The oil firm's first-quarter profit more than halved, partly hurt by lower production. [ID:nL3E7GA0G3]

* Trican Well Service Ltd. (TCW.TO): The oil field services company said its first-quarter net income more than doubled, helped by an increase in drilling activity in oil and liquids-rich plays on the back of surging oil prices. [ID:nL3E7GA00N]

* Gran Tierra Energy Inc. (GTE.TO): The oil exploration and production company posted a higher quarterly profit helped by an increase in realized crude oil prices and raised its capital expenditure forecast for 2011. [ID:nL3E7GA1J8]

* Rocky Mountain Dealerships Inc. (RME.TO): The construction and agriculture equipment broker posted a 52 percent rise in its first-quarter profit, helped by higher new and used equipment sales. [ID:nL3E7GA21J]

* North American Palladium Ltd. (PDL.TO): The precious metals company's first-quarter loss narrowed, but the company cut its 2011 palladium production forecast as it shifts focus to development from production. [ID:nL3E7GA0CY]

* Mega Brands Inc. MB.TO: The toymaker said that Quebec's financial regulator has undertaken an administrative proceeding regarding the exercise of options in 2005 by current and former executives, including CEO Marc Bertrand. [ID:nL3E7GA0CU]

* Flint Energy Services Ltd. FES.TO: The oilfield service firm posted a quarterly loss, hurt mainly by weaker activity across all but one of its segments. [ID:nL3E7G93KV]

ANALYST RECOMMENDATIONS

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

* Canadian Tire Corp Ltd (CTC.TO) price target raised to C$72 from C$71; rating sector outperformer at CIBC

* East Asia Minerals Corp EAS.V price target cut to C$4.60 from C$7.50; rating hold at Canaccord Genuity

* Ensign Energy Services Inc (ESI.TO) price target raised to C$22 from C$21, rating sector performer at CIBC; price target raised to C$21 from C$18, rating sector perform at RBC

* Forzani Group Ltd FGL.TO rating cut to sector performer from sector outperformer at CIBC

* Katanga Mining Ltd (KAT.TO) price target raised to C$2.10 from C$2; rating sector performer at CIBC

* Orbit Garant Drilling Inc (OGD.TO) coverage started with outperform rating; C$8 price target at National Bank

* Thompson Creek Metals Co Inc TCM.TO price target cut to C$18 from C$19; rating sector outperformer at CIBC

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

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