September 15, 2010 / 12:41 PM / 7 years ago

CANADA STOCKS-TSX set to open lower as resources drag

TORONTO, Sept 15 (Reuters) - Toronto’s main stock index looked set to open lower on Wednesday after three days of gains, as commodity prices slipped on worries about demand from top resource consumer China.

FACTORS TO WATCH

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

* U.S. stock index futures were modestly lower on Wednesday as investors looked set to consolidate recent gains. [.N]

* European shares were lower by midday on Wednesday, with drugmakers falling with AstraZeneca slipping as its heart drug Brilinta faced a delay in getting U.S. approval. [.EU]

* Markets in Asia were broadly up with the Nikkei jumping 2.3 percent to a one-month closing high after Japan intervened to weaken the yen for the first time in six years. [nTOE68E02W]

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.64 percent in early trade.

* Oil fell for a second day on Wednesday as pipeline operator Enbridge prepared to reopen the biggest Canada-U.S. crude line, which analysts said could limit the drainage of record-high inventories. [O/R]

* Spot gold traded flat on Wednesday, hovering near record highs hit in the previous session, as investor buying and lingering doubts about the global economy offset a firm dollar. [GOL/]

* Copper prices lurched lower on Wednesday as the market worried about demand from top consumer China on talk of higher capital adequacy ratios for the country’s banks. [MET/L]

CANADIAN STOCKS TO WATCH

* Potash Corp POT.TO: China’s state-owned Sinochem Corp appears unwilling to make a bid for Potash, even as Beijing voiced concern over BHP Billiton’s (BHP.AX) $39 billion bid for the Canadian firm on Wednesday. [ID:nSGE68E0AG]

* First Quantum Minerals (FM.TO): First Quantum Minerals is suing units of Eurasian Natural Resources Corp ENRC.L which bought rights to Kolwezi, a disputed copper project, after Democratic Republic of Congo withdrew First Quantum’s licence. [ID:nLDE68E05M]

* MDS MDS.TO: The world’s biggest suppliers of medical isotopes on Tuesday reported third-quarter loss from continued operations of $18 million or 27 cents per share, compared with a profit of $9 million or 8 cents a share, a year ago. [ID:nN14266985]

* Enbridge Inc (ENB.TO): The U.S. government will allow Enbridge to restart a key oil pipeline that sends Canadian crude to refineries in the Midwest by this weekend, Bloomberg News reported on Wednesday, citing a federal official. [nSGE68E00T] [ID:nN14265233]

* 20-20 Technologies Inc TWT.TO: The software maker for the interior design industry on Tuesday posted third-quarter earnings that met estimates, but revenue fell, hurt by weak performance in home and office segments. [ID:nSGE68D0LI]

* Zenn Motor Co Inc. ZNN.V: The company’s commitment to energy storage developer EEStor remains unwavering despite its recent revelation that it is working on other projects, Zenn’s CEO said on Tuesday. [ID:nN1492707]

ANALYST RECOMMENDATIONS

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

* Dollarama Inc (DOL.TO) target price cut to C$30 from C$31; rating outperform at Raymond James. Price target raised to C$31 from C$29; rating buy at Versant Partners.

* Pacific Rubiales Energy PRE.TO target price raised to C$34 from C$33; rating strong buy at Raymond James

$1=$1.03 Canadian Reporting by Bangalore newsroom and Jennifer Kwan; Editing by Jeffrey Hodgson

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