August 16, 2010 / 12:59 PM / 7 years ago

CANADA STOCKS-TSX may open lower; Japan data fuels growth fears

Aug 16 (Reuters) - Toronto’s main stock index looked set to open lower on Monday as far weaker-than-expected growth numbers from Japan added to concerns the global economic recovery will falter.

FACTORS TO WATCH

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

* Wall Street is also set for a lower open. Mining stocks could be in focus after Vedanta Resources (VED.L) said it will spend up to $9.6 billion to acquire as much as 60 percent of Cairn India (CAIL.BO). [.N]

* European stocks were down, surrendering small gains made in the previous two sessions, led lower by banking and energy stocks.

* Most Asian stocks fell after Japan GDP data painted a gloomy picture for the economy. Japan’s quarterly GPD growth came at 0.1 percent, which translates to an annualized expansion of 0.4 percent, well below the median market forecast of 2.3 percent.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.12 percent in early trade.

* Oil edged higher towards $76 a barrel on Monday with a boost from a weaker dollar, but concerns about faltering economic recovery in some big oil-consuming nations capped gains. [O/R]

* Gold rose to its strongest in seven weeks on Monday, boosted by its safe haven appeal as gloomy Japanese economic data stoked investors’ concerns about the health of the global economic recovery. [GOL/]

* Copper prices rose on Monday as the market focused on falling inventories, supply constraints and growth in China, the world’s largest consumer of industrial metals. [MET/L]

CANADIAN STOCKS TO WATCH

* Agrium Inc (AGU.TO): The Canadian fertilizer maker offered $1.1 billion for Australia’s AWB AWB.AX, trumping a rival bid from local player GrainCorp (GNC.AX) as it seeks to expand its Asian retail operations. [ID:nSGE67E03D]

* Enbridge Inc (ENB.TO): Enbridge lowered capacity on its 490,000 barrel-per-day Line 5, the main alternative to its Michigan pipeline that ruptured last month, but said on Friday it does not expect the move to reduce shipments on the key line. [ID:nN13206018]

* Shaw Communications Inc (SJRb.TO): Shaw Communications’ C$2 billion ($1.9 billion) purchase of Canwest Global Communications Corp’s CGS.V broadcast arm will not substantially reduce or prevent competition in the sector, Canada’s Competition Bureau said on Friday. [ID:nN13194571]

* Medicago Inc MDG.TO: The Canadian biotechnology company on Friday reported a wider quarterly loss, hurt mainly by a rise in research and development expenses related to an upcoming mid-stage study of its H5N1 bird-flu vaccine. [ID:nSGE67C0I2]

* Anvil Mining Ltd AVM.TO: The company on Monday posted a second-quarter profit, boosted by higher sales and lower expenses, but said it expects some delay in commissioning its Kinsevere project in Congo. [ID:nSGE67F0GG]

* Electrovaya (EFL.TO): The zero-emission lithium ion battery systems maker on Monday reported a narrower quarterly loss as it ramped up supply of its battery packs. [ID:nSGE67F0G3]

* First Majestic Silver Corp (FR.TO): The company, which operates silver properties in Mexico, reported a nearly nine-fold increase in quarterly profit as it was helped by higher precious metal prices and improved production at its mines. [ID:nSGE67F0FU]

ANALYST RECOMMENDATIONS

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

* Boardwalk REIT (BEI_u.TO) rating raised to outperform from market perform at Raymond James

* Exchange Income (EIF.TO) target price raised to C$18 from C$16; rating outperform at Raymond James

* Petrobank Energy and Resources PBG.TO target price cut to C$51 from C$58; rating outperform at Raymond James

* Savanna Energy SVY.TO target price cut to C$7 from C$7.50; rating outperform at Raymond James

* Toromont Industries (TIH.TO) target price raised to C$31.50 from C$30; rating outperform at Raymond James

$1=$1.04 Canadian Dollar Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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