June 20, 2011 / 12:27 PM / 6 years ago

CANADA STOCKS-TSX may open lower on Greek debt woes

June 20 (Reuters) - Toronto’s main stock index looked set to open lower on Monday as uncertainty surrounding a resolution of the Greece crisis made investors wary of committing more cash to equities.

Crude prices fell and bond yields in heavily indebted euro zone countries jumped after the region’s finance ministers delayed a final decision on extending emergency loans to Greece. [MKTS/GLOB]

FACTORS TO WATCH

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

* U.S. stock index futures fell after euro zone finance ministers postponed a final decision on extending emergency loans to debt-stricken Greece. [.N]

* European shares fell led by banks after euro zone finance ministers delayed a decision on extending emergency loans to Greece and ratings agency Moody’s threatened to cut Italy’s credit rating. [.EU]

* Markets in Asia were largely lower, with Nikkei stock average ending flat, with investor caution before the Federal Open Market Committee meeting this week offset gains in power companies, which rose on a minister’s call for the restart of nuclear reactors.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.55 percent in early trade.

* Crude oil prices fell by more than $1, extending last week’s losses, with risk aversion rising after euro zone finance ministers postponed a final decision on emergency loans to Greece. [O/R]

* Gold gave up early gains but was still supported by euro zone debt woes after ministers delayed a decision on emergency loans to Greece, while bullion priced in sterling struck a lifetime high. [GOL/]

* Copper fell as investors lost their appetite for risk after European finance ministers postponed an emergency loan to help Greece avoid defaulting on its debt and China demand worries weighed. [MET/L]

CANADIAN STOCKS TO WATCH

* Agrium Inc. (AGU.TO): The farm products retailer and potash miner, raised its second-quarter earnings outlook citing very strong retail sales and increasing nutrient pricing. [ID:nL3E7HK1Q2]

* Royal Bank of Canada (RY.TO): PNC Financial Services Group Inc agreed on Sunday to buy the banks U.S. retail bank operations for $3.45 billion, helping it expand in markets in the U.S. Southeast, two people familiar with the matter said on Sunday. [ID:nN1E75I0A3]

* Boyd Group Income Fund (BYD_u.TO): The fund plans to buy Cars Collision Center, a private collision repair company based in the United States, for $21 million. [ID:nASA02C5L]

* Teck Resources TCKb.TO: The diversified miner forecast second-quarter coal sales at the lower-end of its outlook range and expects lower selling price after customers deferred shipments due to the earthquake and tsunami in Japan. [ID:nL3E7HK0MT]

* Research in Motion RIM.TO: Barron’s financial weekly said it “goofed” in its bullish view of the BlackBerry maker two months ago, with the only choice now being to sell the shares. [ID:nN1E75I05T]

ANALYST RECOMMENDATIONS

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

* Bridgewater Systems Corp BWC.TO price target raised to C$8.20 from C$7, rating sector perform at National Bank; rating raised to sector performer from sector underperformer at CIBC

* Brookfield Real Estate Services Inc BRE.TO price target cut to C$15.50 from C$16; rating sector performer at CIBC

* Capstone Mining Corp (CS.TO) price target raised to C$6.70 from C$6.40; rating sector outperformer at CIBC

* Claude Resources Inc CRJ.TO price target cut to C$2.10 from C$2.25; rating sector performer at CIBC

* Contrans Group Inc CSS.TO coverage started with sector performer rating; C$10 price target at CIBC

* Research In Motion RIM.TO rating cut to underperform from market perform at Bernstein

* Transforce TFI.TO coverage started with sector outperformer rating; C$18.50 price target at CIBC

$1= $0.98 Canadian Reporting by Kishan Nair; Editing by Jeffrey Hodgson

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