October 18, 2010 / 12:51 PM / 7 years ago

CANADA STOCKS-TSX may open lower as softer commodities weigh

4 Min Read

Oct 18 (Reuters) - Toronto's main stock index could open lower on Monday hurt by falling commodity prices, which declined as the U.S. dollar bounced back from its recent hefty losses.

Factors to Watch

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

* Wall Street pointed to a lower open on Monday as investors remained cautious ahead of major corporate results and factory data that could offer a clue whether the economy is slipping back into recession or not. [.N]

* European shares turned positive, with financial services companies continuing their rise, while earlier takeover news from BlueBay had also lifted sentiment. [.EU]

* Asian stocks pulled back from a two-year high as markets awaited details of a widely expected easing in U.S. monetary policy.

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was flat in early trade.

* Oil hovered near $81 a barrel on Monday, after earlier hitting its lowest in over a week, pressured by uncertainty over the U.S. economic outlook and as the battered dollar rallied. [O/R]

* Gold slipped below $1,360 an ounce in Europe on Monday as the dollar bounced back from its recent hefty losses, with market watchers worried that expected U.S. monetary easing had already been too heavily priced in. [GOL/]

* Copper fell on Monday as a rebound in the dollar halted a rally that took the metal up to 27-month highs last week, even as an increasingly tight fundamental backdrop backed lofty price levels. [MET/L]

Canadian Stocks to Watch

* Royal Bank of Canada (RY.TO). The bank on Monday agreed to buy fund manager BlueBay Asset Management for around 963 million pounds, as part of the Canadian group's plans to become a top 10 global wealth manager. [ID:nLDE69H06R]

* Research in Motion RIM.TO: The Blackberry-maker had launched new Middle East services, the firm's co-CEO said on Monday, after it resolved a row with the United Arab Emirates over data security earlier this month. [ID:nLDE69H0EL]

* Bombardier Inc (BBDb.TO): The civil aircraft maker outlined details on Saturday of two new jets it will launch to expand its product line of large-cabin business aircraft. [ID:nN16242951]

* First Quantum Minerals (FM.TO). The copper and gold miner plans to buy Antares Minerals, owner of a major undeveloped copper deposit in Peru, moving into Latin America at a time when licence issues have halted its operations in the Democratic Republic of Congo (DRC). First Quantum said it agreed to buy Antares in a cash and share deal worth about C$460 million. [ID:nLDE69H0B1]

* Quadra FNX Mining Ltd QUX.TO: The Canadian miner's third-quarter copper and gold production at its Robinson mine in Nevada fell, and forecast 2010 output from the mine to be at the lower end of its prior outlook. [ID:nSGE69H0HH]

* U.S. Silver Corp USA.V: The silver producer posted lower third-quarter silver production, hurt in part by the protracted effects of a contractor fatality in late June, and trimmed its full-year production forecast. [ID:nSGE69E0JO]

* Western Energy Services WRG.V: The company said it will buy all outstanding units of Pantera Drilling Income Trust RIG_u.TO for about C$47.5 million in stock, to augment its oilfield services in Canada. [ID:nSGE69H0HP]

Analyst Recommendations

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

* Easyhome EH.TO price target cut to C$15 from C$16; keeps outperform rating at Raymond James

$1= $1.02 Canadian Reporting by Bangalore Newsroom; Editing by Jeffrey Hodgson

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