November 15, 2011 / 1:48 PM / 6 years ago

CANADA STOCKS-TSX may open lower as euro zone debt fears grow

6 Min Read

 Nov 15 (Reuters) - Toronto's resource-heavy main stock index looked set to open lower on Tuesday, hurt by falling commodity prices as uncertainties about Europe's debt revived worries about the global economy.
 FACTORS TO WATCH
 * Canadian equity futures <0#SXF:> pointed to a lower open.
 * U.S. stock index futures fell, extending a drop in global equities, as doubts about the ability of Europe to tackle its debt crisis sent Italy's bond yields back into a perceived danger zone. [.N]
 * European stocks fell, adding to the previous session's decline, with banks among the biggest losers as investors saw euro zone bond yields rising to alarming levels, and worried that policymakers were unable to stem the trend. [.EU] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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 0.03 percent in early trade.
 * Brent crude was little changed after solid German and French growth data but worries over the outlook for euro zone deepened as debt yields rose and austerity measures threatened to tip the bloc into recession. [O/R]
 * Gold fell, hit by a sell-off in financial markets and a drop in the euro against the dollar, with persistent doubts about Europe's ability to tackle its growing debt crisis prompting investors to remain cautious. [GOL/]
 * Copper fell about 1 percent as prospects for demand remained gloomy amid renewed doubts that Italy and Greece will be able to successfully tackle their debt and convince the bond markets to lend to them at reasonable rates. [MET/L]
 CANADIAN STOCKS TO WATCH
 * Bombardier Inc. (BBDa.TO) (BBDb.TO):  Turkey's Atlasjet has signed a letter of intent to buy 10 Bombardier CS300 jetliners at a price of $776 million, the planemaker said. [ID:nL5E7MF12B]
 * Sears Canada SCC.TO: The retailer posted a third-quarter loss, hurt by excess inventories and restructuring costs. [ID:nL3E7MF1MY]
 * Suncor Energy Inc. (SU.TO): The oil and gas company said on Monday it resumed normal operations at the 50,000 barrel-a-day Terra Nova field off Newfoundland following a four-week maintenance shutdown. [ID:nN1E7AD1P4]
 * Sino-Forest Corp TRE.TO: The Chinese timber firm listed in Toronto, said an independent committee found no evidence of fraud at the company, whose share price has been savaged this year following allegations by short-seller Muddy Waters. [ID:nL3E7MF0JM]
 * Hathor Exploration HAT.TO: Rio Tinto is unlikely to walk away from a bidding war for uranium developer, investors said, after rival bidder Cameco Corp trumped the global miner with a C$625 million offer [ID:nL3E7MF0IO]
 * Alliance Grain Traders Inc. (AGT.TO): The company posted a massive rise in quarterly adjusted earnings, as the staple food and pulse processor took advantage of increased crop supply, and said it expects the positive export trends to continue into next year. [ID:nL3E7ME28L]
 * Azure Dynamics AZD.TO: The company posted a wider third-quarter net loss on higher cost of sales, and the auto component maker said it expects revenue for the year to be at the lower-end of the forecast range.[ID:nL3E7ME268]
 * Great Panther Silver (GPR.TO): The company posted a higher third-quarter net profit, and the Canadian miner, which operates mainly in Mexico, expects output in the fourth quarter to rise 14 percent over the current period. [ID:nL3E7ME272]
 * Canacol Energy (CNE.TO): The oil company posted a first-quarter profit, helped by a rise in average daily sales volumes. [ID:nL3E7MF1IK]
 * Catalyst Paper CTL.TO: The company posted a narrower-than-expected adjusted net loss in the third quarter on higher sales and improved paper prices. [ID:nL3E7ME29B]
 ANALYST RECOMMENDATIONS
 Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
 * Ag Growth International Inc (AFN.TO) price target cut to C$32 from C$34 at NBF
 * Algonquin Power & Utilities Corp (AQN.TO) rating raised to buy from hold at Salman Partners
 * Enerplus Corp (ERF.TO) price target cut to C$30.50 from C$31.50 at CIBC  
 * Nevsun Resources Ltd (NSU.TO) price target cut to C$8 from C$8.50 at CIBC 
 * Trilogy Energy Corp (TET.TO) price target raised to C$40 from C$38 at CIBC  
 * Vero Energy Inc VRO.TO price target cut to C$5 from C$6 at NBF; price target cut to C$6.50 from C$7.50 at CIBC
 ($1= $1.02 Canadian)  (Reporting by Shivaprasanna Hebbar; Editing by Jeffrey Hodgson)                 

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