October 4, 2011 / 12:47 PM / 6 years ago

CANADA STOCKS-TSX set to open lower on Greek default worries

Oct 4 (Reuters) - Toronto's resource heavy main stock index looked set to open lower on Tuesday after increased risk aversion on Greek debt default worries battered global equities and commodities.

FACTORS TO WATCH

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

* U.S. stock index futures fell, a day after equities hit 13-month lows, on increased worries about a major banking crisis in Europe and expectations Greece would default soon. [.N]

* Britain's top share index fell sharply by midday as worries over the euro zone debt crisis and the sustainability of global growth prompted investors to cut positions in riskier assets such as banks and commodity stocks. [.EU]

* Asian stocks fell, with Nikkei down 1 percent. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at [CA/MNC] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 1.11 percent in early trade.

* Brent crude futures LCOc1 dropped below the psychologically-important $100 per barrel level, dragged lower on fears that the euro zone might struggle to contain the unfolding Greek crisis. [O/R]

* U.S. gold futures rose on safe-haven buying due to fears a Greek default could spread across the banking system. Copper slid as the weak economic outlook was seen deflating demand for the red metal. [GOL/]

* Copper fell for a fifth day, as lingering concerns about the euro zone debt crisis and the threat of global recession prompted worries about the outlook for industrial metal demand. [MET/L]

CANADIAN STOCKS TO WATCH

* Jean Coutu Group (PJCa.TO): The pharmacy chain reported a 53 percent rise in second quarter profit, as it gained from the disposal of shares in Rite Aid Corp, a national chain of drugstores in the United States. [ID:nL3E7L41Q3]

* Mercator Minerals ML.TO: The mining company increased output of copper and molybdenum at its Mineral Park Mine in Arizona in the third quarter, helped by the completion of a second phase of expansion at the mine. [ID:nL3E7L41RA]

* Enbridge Inc. (ENB.TO): The company said on Monday it plans to spend C$100 million to add 50,000 barrels per day of new capacity on its Wisconsin to Ontario Line 5 oil pipeline. [ID:nN1E7921UY]

* Shoppers Drug Mart Corp. SC.TO: The drugstore chain said Domenic Pilla has been appointed as its president and CEO, effective Nov. 1. [ID:nL3E7L32F6]

ANALYST RECOMMENDATIONS

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

* Birchcliff Energy (BIR.TO) price target raised to C$14.50 from C$10.75 at Raymond James

* Insignia Energy ISN.TO price target cut to C$2.50 from C$2.75 at Raymond James

* Pacific Rubiales PRE.TO price target raised to C$48 from C$44 at Raymond James

* Peer 1 Network PIX.TO price target raised to C$2.25 from C$2 at National Bank

* Richmont Mines (RIC.TO) rating cut to sector perform from outperform at National Bank

$1= $1.06 Canadian Reporting By Mohit Malukani; Editing by Jeffrey Hodgson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below