CANADA STOCKS-TSX set for firmer open as resources, gold gain

Wed Sep 22, 2010 8:53am EDT
 
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 TORONTO, Sept 22 (Reuters) - Toronto's main stock index
looked set to open slightly higher on Wednesday, boosted by a
rise in prices for gold and other commodities, which could
offset investor caution after the U.S. Federal Reserve opened
the door to more monetary easing.
 FACTORS TO WATCH
 * Canadian equity futures <0#SXF:> pointed to a higher
open.
 * Canada's dollar touched a session low versus the U.S.
currency on Wednesday after domestic data showed retail sales
fell unexpectedly in July. [CAD/]
 * U.S. stock index futures fell on Wednesday on concerns
about the inflation outlook and as the Federal Reserve inched
closer to expanding its quantitative easing policy, sending
gold prices to a record high. [.N]
 * European shares fell on Wednesday, with banks lower on
lingering concerns over the pace of the global economic
recovery following the latest Federal Reserve's assessment.
[.EU]
 * Asian markets were mixed with the Nikkei down 0.4
percent, but losses were stemmed by expectations that a strong
yen rise would bring further Japanese intervention.
 COMMODITY PRICE MOVES
 * The Thomson Reuters-Jefferies CRB index .CRB, a global
commodities benchmark, rose 0.61 percent in early trade.
 * Oil rose above $75 a barrel on Wednesday, recovering some
of the previous session's losses, supported by a weaker dollar
but ongoing U.S. demand doubts limited gains. [O/R]
 * Gold rose for a third day on Wednesday to hit record
highs above $1,290 an ounce after the Federal Reserve's signal
that it was prepared to pump fresh cash into the economy hurt
the dollar and whet investor appetite for bullion. [GOL/]
 * Copper firmed on Wednesday on the back of a weaker dollar
but the market looked heavy after recent gains and investors
were reluctant to press higher in the absence of Chinese
players and fresh impetus. [MET/L]
 CANADIAN STOCKS TO WATCH
 * Potash Corp POT.TO: China's Sinochem Corp has hired
banks to advise the company on how to foil BHP Billiton's $39
billion bid for Potash, sources said. [ID:nN21234994]
 * Forzani Group Ltd FGL.TO: The retailer said on Tuesday
sales rose in its sporting goods stores opened at least a year
during the back-to-school period compared with the same weeks
of 2009. [ID:nN21184287]
 * Research In Motion RIM.TO: India is in talks with RIM
to gain access to BlackBerry corporate e-mails after securing
access to instant messages sent via the devices, a senior
government source said on Tuesday. [ID:nSGE68L03I]
 --- The Blackberry maker may use a developers' conference
next week to announce plans for a tablet computer to compete
with Apple and Amazon, the Wall Street Journal said.
[ID:nN21183657]
 * Gaz Metro LP GZM_u.TO: The company said it received
approval from a court in Quebec for its previously announced
plan to convert the public ownership structure of the company
into a new dividend-paying corporation. [ID:nSGE68K0MQ]
 ANALYST RECOMMENDATIONS
 Following is a summary of research actions on Canadian
companies reported by Reuters. [RCH/CA]
 * Paradigm cuts CAE Inc CAE.TO to hold from buy.
 ($1=$1.02 Canadian)
 (Reporting by Bangalore newsroom and Jennifer Kwan; editing by
Jeffrey Hodgson)