April 16, 2010 / 1:03 PM / 7 years ago

CANADA STOCKS-TSX set to open lower on weak commodity prices

5 Min Read

April 16 (Reuters) - Toronto's main stock index could open lower on Friday with commodities dipping as investors fretted about the outlook for demand in the U.S. and China.

Wall Street is also set to open lower as initial investor optimism on corporate earnings tempered.

Markets will likely seesaw between Bank of America and General Electric's expectation-beating results and Google, which disappointed some investors accustomed to blowout results despite topping analyst forecasts. [.N]

European shares ticked higher as industrials gained after strong SKF results, and banks recovered.

Asian stocks retreated from 22-month highs, and higher-yielding currencies fell, as investors booked profits after risky assets ran up in recent sessions.

Factors to watch on Friday include:

Oil Dips

Oil prices fell below $85 a barrel as doubts over U.S. crude demand re-emerged and the dollar strengthened, making imports more expensive for emerging economies where consumption is surging. [O/R]

Gold Softens

Gold eased in Europe, pressured by dollar strength as concern over Greece's ability to service its debts weighed on the euro, though underlying demand for the metal as a portfolio diversifier supported prices. [GOL/]

Stocks to Watch This Morning

Aura Minerals Inc (ORA.TO)- The company on Thursday said its first-quarter gold production rose 32 percent to 19,299 ounces form year ago period and it is confident to meet or exceed its gold production guidance of 90,000 ounces for 2010.

Genivar Income Fund GNV_u.TO. The fund on Friday agreed with Genivar Inc to convert from an income trust structure to a publicly traded corporation on or about Jan. 1, 2011. The company said the new corporation will be named Genivar Inc and would be listed on the TSX under the symbol "GNV" upon completion of the arrangement.

GLG Life Tech (GLG.TO). The life sciences company said on Friday that it had reached agreements in Australia and Latin America to distribute its stevia line of natural sweeteners. The company signed an agreement with Essentia Stevia for the distribution and marketing of GLG's high stevia extracts in 18 countries throughout Latin America. The second agreement, with leading Australian sugar refiner Sugar Australia, is subject to certain conditions

Jaguar Mining Inc JAG.TO. The company on Thursday said its first-quarter gold production fell 5 percent, partly hurt by lower grades at its Brazilian mines. The company produced 31,223 ounces of gold at an average cash operating cost of US$595 per ounce, compared with 32,868 ounces at an average cash operating cost of US$409 an ounce, a year ago.

Viterra Inc VT.TO. The grain handler on Friday said it launched a global financing facility of C$1.6 billion for working-capital requirements. The three-year unsecured facility will replace Viterra's existing C$800 million line of credit in Canada and the A$1.2 billion operating line in Australia. Viterra, which completed its takeover of Australia's ABB Grain in September, said it has the right to increase the facility by up to C$400 million.

Analyst Recommendations

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

* ADF Group Inc (DRX.TO) price target cut to C$3.50 from C$4; rating outperform at Raymond James

* Air Canada ACa.TO rating raised to strong buy from outperform at Raymond James

* BCE Inc (BCE.TO) rating raised to buy from neutral at UBS

* Boardwalk REIT BEI_u.TO price target raised to C$39 from C$37; rating hold at Genuity

* CAE Inc (CAE.TO) price target raised to C$11 from C$9.50; rating neutral at UBS

* Canexus Income Fund CUS_u.TO started with buy rating; price target of C$7.80 at Acumen Capital

* Ithaca Energy IAE.V price target raised to C$3.60 from C$3; rating overweight at Thomas Weisel

* Mirabela Nickel MBN.AX price target raised to C$3.50 from C$3; rating buy at UBS

* Osisko Mining (OSK.TO) price target raised to C$10.50 from C$10.10; rating market perform at Raymond James

* WestJet Airlines (WJA.TO) rating raised to outperform from market perform at Raymond James (Reporting by Bangalore newsroom, editing by Savio D'Souza and Jeffrey Hodgson)

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