October 27, 2011 / 12:53 PM / 6 years ago

CANADA STOCKS-TSX set to jump at open on EU debt crisis deal

Oct 27 (Reuters) - Toronto’s main stock index was set to open sharply higher on Thursday, driven by investor relief that European policymakers reached a deal aimed at halting the region’s two-year old debt crisis.

The deal included a plan to leverage the bloc’s rescue fund to 1 trillion euros, a 50 percent haircut for private holders of Greek debt and recapitalization of banks. [ID:nL5E7LR2LX]

FACTORS TO WATCH

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

* The Canadian dollar strengthened past parity to a one-month high against its U.S. counterpart. [CAD/]

* U.S. stock index futures rose sharply after European leaders agreed to boost the region’s bailout fund. [.N]

* Financial stocks led European shares higher after EU leaders and banks struck a deal intended to draw a line under the euro zone’ spiraling debt problems, setting up the market for its biggest one-month gain in more than two years. [.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, rose 1.45 percent in early trade.

* Oil rose towards $111 a barrel after European leaders struck a deal with private holders of Greek debt, easing concerns that economic weakness could spread and curb energy demand. [O/R]

* Gold steadied after a deal by European leaders to tackle the euro zone debt crisis encouraged investors to delve back into riskier assets such as higher-yielding currencies and equities and also to boost their bullion holdings. [GOL/]

* Copper rose 4 percent to hit its highest in more than a month as investors welcomed a long-awaited deal agreed by European leaders. [MET/L]

CANADIAN STOCKS TO WATCH

* Potash Corp (POT.TO): The world’s top fertilizer maker said that its third-quarter profit more than doubled, as strong grain prices boosted demand for its crop nutrient products. [ID:nN1E79P2GK]

* Barrick Gold (ABX.TO): The gold miner reported a 45 percent increase in its quarterly profit on Thursday, driven by a sharp increase in bullion prices. [ID:nN1E79P2GN]

* Research in Motion RIM.TO: Consumers in the United States and Canada have sued RIM for a days-long service outage on BlackBerry devices that rippled across the world earlier this month. [ID:nN1E79P2GT]

* Goldcorp Inc. (G.TO): The gold miner said on Wednesday its third-quarter operating earnings rose 10.2 percent, driven largely by a sharp increase in the price of gold. [ID:nN1E79P23Q]

* Bombardier Inc. (BBDb.TO) The civil aircraft maker said on Wednesday that an unnamed Chinese airline has tentatively agreed to buy six of its CRJ900 NextGen regional commercial aircraft. [ID:nN1E79P26J]

* Teck Resources TCKa.TOTCKb.TO: The diversified miner said its third-quarter net income more than doubled, driven largely by strong results from its coal and copper businesses. [ID:nN1E79P2GI]

* Cenovus Energy Inc. (CVE.TO): The Canadian oil sands producer posted a 73 percent rise in third-quarter profit on higher production and crude prices. [ID:nL3E7LR1H8]

* Agnico-Eagle Mines (AEM.TO): The company reported a third-quarter net loss on Wednesday, as its results were hurt by a large charge related to the write-off of its investment in the Goldex mine in Quebec. [ID:nN1E79P1F2]

* Nexen Inc. NXY.TO: The independent oil producer quarterly profit fell 65 percent despite higher crude prices as the company had to tackle lower production rates at some assets. [ID:nL3E7LR1B6]

* Pacific Rubiales PRE.TO: Colombia sent 400 additional police to guard Colombia’s largest oil field after the company threatened to suspend operations there unless reinforcements were sent to help quell a violent demonstration. [ID:nN1E79P261]

* Domtar Corp. UFS.TO: The paper and pulp producer reported a 39 percent fall in third-quarter profit on weak pulp prices and higher input costs, and said paper shipments are expected to drop sequentially in the fourth quarter. [ID:nL3E7LR22S]

ANALYST RECOMMENDATIONS

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

* Alimentation Couche Tard (ATDb.TO) price target raised to C$36 from C$34 at National Bank

* Astral Media Inc. ACMa.TO price target cut to C$40 from C$43 at Credit Suisse

* Canadian National Railway (CNR.TO) price target raised to C$80 from C$76 at Raymond James

* Canadian Pacific Railway (CP.TO) price target cut to $58 from $62 at Credit Suisse

* Firstservice Corp. (FSV.TO) price target cut to C$38.00 from C$39.50 at CIBC

* Quest Rare Minerals QRM.V coverage started with outperform; target $4.30 at National Bank

$1= $0.99 Canadian Reporting by Rahul Karunakar; Editing by Jeffrey Hodgson

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