August 12, 2010 / 1:07 PM / 7 years ago

CANADA STOCKS-TSX may open lower as growth fears hit commodities

Aug 12 (Reuters) - Toronto’s resource-heavy main stock index looked set to open lower on Thursday as commodity prices slipped on lingering doubts about the outlook for the global economic recovery.

Canadian equity futures <0#SXF:> pointed to a lower open as the Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.46 percent in early trade.

Wall Street is also set for a lower start after a steep sell-off in the previous session that erased gains for the year. U.S. stock futures added to losses after initial jobless claims there unexpectedly rose in the latest week. [.N]

European shares were mixed with food and telecom stocks leading the gainers as worries about global economic growth prompting investors to take refuge in defensive sectors.

Most markets in Asia were down with the Nikkei hitting its lowest level in 13 months, hammered by concerns over a global slowdown that pushed the dollar to its weakest level in 15 years against the yen.

Here is some news that could affect stock prices:

OIL FALLS

Oil slipped to around $77 a barrel on Thursday, heading for a third straight session of losses, on lingering doubts over the outlook for fuel demand in the world’s biggest energy consumers. [O/R]

COPPER DIPS

Copper fell to a two-week low on Thursday as the market fretted about growth, but expectations of stronger Chinese demand will help bolster sentiment and prices over coming months. [MET/L]

GOLD RALLIES

Gold prices headed towards session highs on Thursday, as flagging confidence in the global economic outlook battered stock markets and prompted a flurry of investment in perceived safe-haven assets. [GOL/]

C$ DRIFTS

The Canadian dollar edged slightly lower against the greenback on Thursday morning following a sharp sell-off triggered by growing doubts over the outlook for the global economy. [CAD/]

Canadian stocks to watch include:

RESEARCH IN MOTION RIM.TO

RIM’s popular BlackBerry email and messenger services will be shut down if the Canadian maker does not address Indian security concerns by Aug. 31, a senior government source said on Thursday. [ID:nSGE67B09R]

TIM HORTONS INC THI.TO

Canada’s largest restaurant chain posted a 21 percent rise in net income on Thursday and said it is selling its 50 percent interest in Maidstone Bakeries to its European joint venture partner Aryzta AG ARYN.S. [ID:nN11243667]

SUNCOR ENERGY INC (SU.TO)

Canada’s largest energy company said early on Thursday that it has struck a deal with Direct Energy to sell natural gas assets for about C$375 million ($357 million). [ID:nSGE67B08I]

AETERNA ZENTARIS INC AEZ.TO p

The drugmaker posted a smaller quarterly loss on Thursday, attributed to lower research and development costs and higher foreign exchange gains. [ID:nN11241118]

LABOPHARM INC DDS.TO

The biotech company reported a bigger second-quarter loss on Thursday, citing unfavorable currency translations. [ID:nN12271492]

AURIZON MINES (ARZ.TO)

The junior gold miner said on Thursday its operating earnings rose as higher gold prices overshadowed lower production and sales from its Casa Berardi mine in Quebec. [ID:nN12210179]

FNX MINING LTD QUX.TO p

The Canadian miner Quadra posted a second-quarter profit, boosted by strong copper prices, but cut its full-year production view at its Robinson Mine in Nevada, which generated the majority of overall revenue in the quarter. [ID:nSGE67B0FD]

STELLA-JONES INC SJ.TO

The maker of treated wood products, reported a 49 percent drop in quarterly profit, hurt mainly by weaker utility pole sales, but said the railway tie market was gradually improving. [ID:nSGE67B0K6]

SPROTT INC (SII.TO)

The Canadian fund manager posted a higher second-quarter profit as assets under management (AUM) increased 25 percent. [ID:nSGE67B0K7]

CML HEALTHCARE INCOME FUND CLC_u.TO

The company, which specializes in imaging and laboratory services, posted a lower quarterly profit, hurt by weak conditions at its U.S. operations. [ID:nSGE67B0II]

NIKO RESOURCES LTD NKO.TO

The Canadian oil and gas company’s quarterly profit nearly doubled, helped mainly by higher oil production at its key project in India. [ID:nSGE67B0G0]

CRYPTOLOGIC LTD CRY.TO

The gambling software company said Chief Executive Brian Hadfield had resigned and it would implement a programme of job cuts this year after plunging to a bigger-than-expected second-quarter loss. [ID:nSGE67B08M]

RESEARCH ROUNDUP

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

* CAP REIT CAR_u.TO target price raised to C$16.50 from C$15; rating sector perform at RBC

* Farallon Mining FAN.TO target price cut to C$0.65 from C$0.75; rating outperform at Raymond James

* Great Basin Gold GBG.TO rating raised to outperform from market perform at Raymond James

* Opti Canada OPC.TO target price cut to C$1.50 from C$2.25; rating market perform at Raymond James

* Pacific Rubiales Energy PRE.TO target price raised to C$35 from C$33; rating strong buy Raymond James

* Perpetual Energy (PMT.TO) target price raised to C$4.75 from C$4.50; rating market perform at Raymond James

$1=1.05 Canadian Dollar Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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