April 13, 2011 / 12:36 PM / 6 years ago

CANADA STOCKS-TSX may open higher after commodity prices recover

4 Min Read

Apr 13 (Reuters) - Toronto's main stock index looked set to open higher on Wednesday as commodity prices edged up and with financial stocks expected to gain after JPMorgan's quarterly results beat forecasts.

Factors to Watch

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

* U.S. stock index futures rose, rebounding from the previous day's decline, after results from JPMorgan Chase beat expectations and spurred bets that other bank earnings will be strong. [.N]

* European shares extended gains, with banks rising after results at JPMorgan Chase (JPM.N) beat forecasts. [.EU]

* Asian stocks rose with investors looking for fresh opportunities to bet on risky assets after a sharp drop in oil the previous day caused an unwinding of positions.

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.27 percent in early trade.

* Oil crept back above $121, partly reversing a deep sell-off as foreign ministers met for talks on Libya's future and the market awaited U.S. inventory data for possible signs of demand attrition. [O/R]

* Gold rose in Europe, recovering after its biggest one-day drop in nearly a month as the dollar retreated amid expectations the U.S. Federal Reserve will maintain its accommodative monetary policy for now. [GOL/]

* Copper steadied as a round of global risk aversion abated and focus switched to earnings reports for new light on the global economic recovery, while reports of declining output continued to cushion prices. [MET/L]

Canadian Stocks to Watch

* MacDonald, Dettwiler and Associates Ltd. (MDA.TO): The satellite and data distribution company has signed a contract in excess of C$40 million with a confidential customer to provide technology support for a satellite communications and information service, the company said. [ID:nL3E7FD0DU]

* Lundin Mining (LUN.TO): The company said on Tuesday it continues to explore strategic alternatives, and repeated that shareholders should reject the unsolicited C$4.7 billion bid from rival Equinox Minerals EQN.TO. [ID:nN12197494]

* Nexen Exploration NXY.TO: The company drilled a dry well in the Norwegian Sea some seven kilometres southeast of the Heidrun field in production license 434, Norway's petroleum directorate said. [ID:nOSN005144]

* Harry Winston Diamond Corp HW.TO: The company said its quarterly diamond production from its Diavik mine fell sequentially, hurt partly by maintenance at a processing plant. [ID:nL3E7FD1TR]

* Northgate Minerals Corp. NGX.TO: The gold miner expects production at its Young-Davidson gold mine in Northern Ontario to start in late first-quarter of 2012. [ID:nL3E7FD1WR]

* WesternZagros Resources WZR.V: The oil and gas explorer's fourth-quarterly loss almost doubled as a result of a rise in expenses. [ID:nL3E7FC2S3]

* Win-Eldrich Mines Ltd. WEX.V: Precious metals miner said quarterly production at its Ashdown molybdenum mine in Nevada was at peak levels last achieved in 2008, before lower prices forced the mine into maintenance. [ID:nL3E7FC2Y5]

Analyst Recommendations

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

* Ag Growth International AFN.TO price target cut to C$50 from C$53; rating sector performer at CIBC

* Altus Group AIF.TO rating cut to sector performer from sector outperformer at CIBC

* Black Diamond Group Ltd (BDI.TO) target price raised to C$31 from C$28 at Raymond James

* Creston Moly CMS.V rating downgraded to market perform from outperform; target price to C$0.60 from C$1 at Raymond James

* Geologix Explorations Inc GIX.TO coverage started with outperform rating and C$1.10 price target at Raymond James

* Mercator Minerals Ltd ML.TO rating cut to neutral from outperform at Macquarie

$1= $0.96 Canadian Reporting by Karan Khemani; editing by Jeffrey Hodgson

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