April 20, 2011 / 12:43 PM / 6 years ago

CANADA STOCKS-TSX may open higher as commodity prices leap

April 20 (Reuters) - Toronto’s main stock index looked set to open higher on Wednesday, with a jump in oil, gold and other commodity prices expected boost the resource heavy market.

FACTORS TO WATCH

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

* The Canadian dollar rose to its highest since mid-November 2007 against the greenback on renewed demand for carry trades, higher commodity prices and above-forecast inflation in Canada. [CAD/]

* U.S. stock index futures climbed after solid earnings and outlooks from major technology companies renewed optimism over the economic recovery. [.N]

* European shares gained, with technology stocks buoyed by strong results from U.S. chip maker Intel (INTC.O) ahead of Nokia’s NOK1V.HE earnings on Thursday. [.EU]

* Asian shares rose after encouraging corporate earnings from U.S. bellwethers prompted investors to scoop up beaten down large caps.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.77 percent in early trade.

* Brent crude rose above $122 a barrel, helped by a rebound in equities and a weaker dollar. [O/R]

* Gold shot up above $1,500 an ounce for the first time ever as worries over the health of the global economy boosted the metal as a safe haven. [GOL/]

* Copper climbed for a second session on hopes the U.S. housing sector will show further signs of revival in data due later, while aluminum rallied to new two-and-a-half-year highs. [MET/L]

CANADIAN STOCKS TO WATCH

* Encana Corp. (ECA.TO): The gas producer posted a 19-fold plunge in first-quarter profit, hurt by lower natural gas prices. [ID:nL3E7FK1UI]

* TMX Group (X.TO): An Ontario committee on Tuesday proposed tough terms that could force changes to the London Stock Exchange’s $3 billion bid for TMX Group, and refused to say if it backed the deal. [ID:nN19257192]

ANALYST RECOMMENDATIONS

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

* Air Canada ACa.TO price target cut to C$3.50 from C$4; rating buy at Citigroup

* Precision Drilling Corp (PD.TO) price target raised to C$16 from C$12.50; rating outperform at RBC

* Quadra FNX Mining Ltd QUX.TO price target raised to C$25 from C$24 at CIBC

* Taseko Mines (TKO.TO) price target cut to C$6.50 from C$6.70 at CIBC

* Trilogy Energy Corp TET.TO rating raised to sector performer from sector underperformer at CIBC

$1= $0.95 Canadian Reporting by Shrutee Sarkar; editing by Jeffrey Hodgson

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