March 21, 2011 / 12:31 PM / 7 years ago

CANADA STOCKS-TSX may open higher on rising oil, gold prices

March 21 (Reuters) - Toronto’s main stock index looked set to open higher on Monday with oil and gold prices gaining after Western forces launched a second wave of air strikes on Libya and as unrest proliferated in the Middle East.

FACTORS TO WATCH

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

* U.S. stock index futures indicated a Wall Street rise of about 1 percent at the open after last week’s sell-off as investors welcomed a deal by AT&T to buy the T-Mobile business from Deutsche Telekom. [.N]

* European shares gained after investor confidence rose on signs the situation at Japan’s nuclear plant was improving, with telecoms lifted by Deutsche Telekom’s (DTEGn.DE) sale of T-Mobile USA to AT&T. [.EU]

* Asian stocks rose on bargain hunting after heavy losses last week and investors shrugged off Beijing’s latest tightening move.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.97 percent in early trade.

* Oil prices rose by $2 a barrel as a wave of U.N.-mandated airstrikes on Libya and proliferating unrest in the Middle East fanned concerns about oil supply from the region. [O/R]

* Gold rose for a fourth day, driven by concern over the impact to global growth from the devastation in Japan, while western air attacks on Libya added to investor uncertainty. [GOL/]

* Copper rose slightly in subdued trading, caught between prospects of demand for industrial metals to rebuild Japan’s infrastructure and concerns about conflict in Libya and the Middle East. [MET/L]

CANADIAN STOCKS TO WATCH

* Lundin Mining (LUN.TO): The company’s board on Sunday recommended shareholders reject a C$4.7 billion unsolicited bid by Equinox Minerals Ltd (EQN), arguing the offer undervalues the company and is too uncertain. [ID:nN20254445]

* Air Canada ACa.TO: The airliner agreed to a tentative labor contract with its pilots on Friday, the first such deal the country’s largest airline has reached this year as it engages in contract talks with unions representing 22,000 employees altogether. [ID:nN18146512]

* Lucara Diamond Corp. LUC.V. Gem Diamonds said it is in talks with the company over a possible merger. [ID:nLDE72K090]

ANALYST RECOMMENDATIONS

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

* Black Diamond (BDI.TO) price target raised to C$28 from C$26; rating outperform at Raymond James

* Capital Power (CPX.TO) resumed coverage with sector perform rating at National Bank

* Flint Energy Services Ltd FES.TO price target cut to C$20 from C$21; rating hold TD Newcrest

* Gran Tierra Energy (GTE.TO) price target raised to C$12.50 from C$12; rating strong buy at Raymond James

* Medical Facilities DR_u.TO price target raised to C$13 from C$12; rating outperform National Bank; price target raised to C$11.50 from C$10; rating hold at TD Newcrest

$1= $0.97 Canadian Reporting by Kishan Nair; editing by Jeffrey Hodgson

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