August 19, 2010 / 12:56 PM / 7 years ago

CANADA STOCKS-TSX may open lower on weak Canadian, U.S. data

Aug 19 (Reuters) - Toronto’s main stock index could open lower on Thursday after data showed initial U.S. jobless claims unexpectedly rose and Canadian wholesale trade and leading indicator data came in lower than expected.

FACTORS TO WATCH

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

* Canadian wholesale trade unexpectedly fell 0.3 percent in June from May on faltering sales of machinery, equipment and supplies in another sign the economic recovery lost some momentum in the second quarter. [ID:nN19243100]

* The rise in Canada’s composite leading indicator posted the slowest increase in a year at 0.4 percent in July from 0.7 percent in June, as the cooling housing market partially offset a comeback in manufacturing. [ID:nN19270234]

* U.S. stock index futures turned negative after data showed first-time jobless claims rose unexpectedly in the latest week, underscoring labor market weakness. [.N]

* European shares extended gains after Germany’s Bundesbank said the country’s economy will grow by 3 percent this year against a previous forecast of almost 2 percent. [.EU]

* Asian stocks were up with the Nikkei gaining 1.3 percent, buoyed by short-covering and bargain-hunting by domestic investors after falls earlier this week, but the yen’s overall strength against the dollar capped further gains.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.09 percent in early trade.

* U.S. crude oil futures prices turned negative on Thursday after a government report showed new claims for jobless benefits unexpectedly climbed to a nine-month high last week. [O/R]

* Gold held near $1,230 an ounce on Thursday as concerns over economic growth supported prices near the last session’s near seven-week high, with investors awaiting U.S. data due later in the day for fresh direction. [GOL/]

* Copper rose to its highest in more than week on Thursday as traders priced in growing appetite for assets perceived to be risky, but lingering concerns about demand are expected to cap gains. [MET/L]

CANADIAN STOCKS TO WATCH

* Potash Corp (POT.TO) (POT.N): BHP Billiton (BHP.AX) (BLT.L), the world’s largest miner, is betting the absence of any rival offers will sway Potash Corp investors to support its bid, said the source familiar with the situation. [ID:nSGE67I049]

* Research In Motion RIM.TO RIMM.O: India’s security agencies are testing ways to access corporate email on Blackberry devices by obtaining encrypted data in a readable format, a government source said on Thursday. [ID:nSGE67I098]

* Open Text Corp OTC.TO: The Canadian business software maker’s quarterly profit rose sharply on strong revenue growth and cost controls, the company said Wednesday. [ID:nN18128989]

* Lake Shore Gold Corp LSG.TO: The Canadian gold miner said on Wednesday it would raise up to C$76.9 million ($74.7 million) in a bought deal and use the proceeds to expand operations at its Ontario mines. [ID:nSGE67H0L6]

ANALYST RECOMMENDATIONS

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

* Detour Gold Corp (DGC.TO) price target raised to C$34 from C$29; rating outperform at RBC

* Osisko Mining Corp. (OSK.TO) price target raised to C$15 from C$13; rating sector perform at RBC

* Sterling Resources SLG.V price target cut to C$3.15 from C$3.30; rating outperform at RBC

$1=$1.03 Canadian Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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