October 5, 2011 / 12:43 PM / 6 years ago

CANADA STOCKS-TSX may open higher on Europe hope, U.S. data

Oct 5 (Reuters) - Canadian stocks looked set to open higher on Wednesday, helped by a pledge from policymakers to strengthen the European banking sector and unexpectedly strong U.S. employment data.

Global shares and key commodities bounced after European ministers agreed to shore up euro zone banks against the spreading debt crisis and an IMF director said the fund might offer support by buying Spanish and Italian bonds. [MKTS/GLOB]

FACTORS TO WATCH

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

* U.S. stock index futures briefly added to gains after a private sector employment report showed the economy gained more jobs than expected last month. [.N]

* Britain’s top shares rallied as hopes for further economic stimulus and support for debt-stricken Greece boosted appetite for riskier banking and commodity stocks. [.EU]

* Asian stocks trimmed earlier gains with Nikkei closing 0.86 percent lower. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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, rose 1.06 percent in early trade.

* Brent crude bounced back above $101, snapping a three-day losing streak, as nervous investors were reassured by European finance ministers agreeing to safeguard their banks. [O/R]

* Gold fell more than 1 percent, extending the previous day’s hefty losses, as rising equities diverted some interest from the precious metal and as investors remained wary of buying into the market after its recent volatility. [GOL/]

* Copper bounced back from a five-day slide, with prices of the red metal boosted by the Federal Reserve’s promise to launch more measures to help the fragile U.S. economy. [MET/L]

CANADIAN STOCKS TO WATCH

* Talisman Energy Inc. TLM.TO: The independent oil explorer said its production has been set back by about 20,000 barrels of oil equivalent per day during the third quarter hurt by maintenance issues in North Sea and weather related issues in western Canada. [ID:nL3E7L5053]

* Precision Drilling (PD.TO): The company said it signed eight new build drilling rig contracts, and raised its capital budget for the year by 11 percent to C$880 million. [ID:nL3E7L51S2]

* IGM Financial IGM.TO: The mutual fund company reported a 5 percent fall in assets under management for September, hit by a decline in mutual funds assets. [ID:nL3E7L42R1]

* Guyana Goldfields GUY.TO: The miner said that it had reached a stability agreement with the Guyanese government for the development of the Aurora gold project in the South American country. [ID:nN1E79404C]

* Capstone Infrastructure Corp. CSE.TO: The company said it bought a 70 percent stake in Bristol Water for C$215 million. [ID:nL5E7L52IV]

ANALYST RECOMMENDATIONS

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

* Canaccord Financial (CF.TO) price target cut to C$16 from C$18.50 at KBW

* Jean Coutu (PJCa.TO) price target raised to C$13 from C$12 at CIBC

* MTY Food (MTY.TO) target cut to C$19 from C$19.25; rating outperform at National Bank

* Pacific Rubiales PRE.TO price target cut by C$2.75 to C$33 at CIBC

* Superior Plus (SPB.TO) coverage resumed with outperform rating; C$8.50 target price at National Bank

$1= $1.05 Canadian Reporting By Mohit Malukani; Editing by Jeffrey Hodgson

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