January 24, 2011 / 1:59 PM / 6 years ago

CANADA STOCKS-TSX set to open higher with commodities firm

4 Min Read

Jan 24 (Reuters) - Canadian stocks looked set to open higher on Monday, with a rise in commodity prices on growing supply concerns expected help lift the resource-rich market.

Factors to Watch

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

* U.S. stock index futures were little changed as investors assessed whether a rally that started about two months ago had any more steam left. [.N]

* European shares fell, after data showed euro zone growth accelerating, but with the peripheral countries way behind Germany, and Philips Electronics (PHG.AS) down on below-forecast fourth-quarter profits. [.EU]

* Asian stocks outside Japan struggled to hold on to gains, as investors remained wary before a slew of corporate earnings in the U.S.

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.45 percent in early trade.

* Brent crude oil held near $98 a barrel on renewed confidence that developed economies are recovering and as Saudi Arabia's oil minister predicted strong oil demand in 2011. [O/R]

* Gold edged up towards $1,350 an ounce in Europe as lower prices attracted buyers after the metal's third consecutive weekly loss, but a more optimistic view of global growth limited fresh investment. [GOL/]

* Copper prices rose as concerns about Chinese demand abated, while tin prices hit a record high with supply constraints supporting the outlook for both metals. [MET/L]

Canadian Stocks to Watch

* Sears Canada Inc SCC.TO: The retailer said it has been warned of a potential safety hazard relating to its snowmobiles and urged customers to immediately stop children from using the product. [ID:nSGE70N0AO]

* Research In Motion RIM.TO: The company aims to keep its dominance of the corporate smartphone market by enabling the BlackBerry to segregate a user's personal data from work-related emails and other applications sponsored by employers. [ID:nN21287150]

* Almaden Minerals Ltd AMM.TO: The mineral explorer said preliminary results of a study at its Elk project in British Columbia showed that the project is viable with a mining life of seven years. [ID:nSGE70N099]

* Baffinland Iron Mines BIM.TO: Stakeholders in the company, owner of a vast Arctic iron ore deposit, have until midnight on Monday to tender to a C$590 million takeover offer led by No. 1 steelmaker ArcelorMittal, ending a months-long standoff. [ID:nN21178661]

* First Quantum Minerals (FM.TO): The company plans to start developing a new copper mine in north-western Zambia in the second-quarter of the year, state-owned ZANIS News Agency reported on Saturday. [ID:nLDE70L03D]

* Canadian National Railway Co. (CNR.TO): A union representing about 4,000 workers at the country's biggest rail carrier have given notice they will strike on Tuesday unless they agree on a new contract. [ID:nN22278952]

* ProspEx Resources PSX.TO: The junior oil and gas explorer said it was reviewing strategic options, including a possible sale of the company, and that it has entered the Montney gas shale formation in British Columbia. [ID:nSGE70N08Q]

Analyst Recommendations

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

* Loblaw Co (L.TO) rating raised to action list buy from buy at TD Newcrest

* Manitoba Telecom MBT.TO rating raised to action list buy from buy at TD Newcrest

* Nordion Inc NDZ.N price target raised to $12.50 from $11.50; rating hold at Newcrest

* Paladin Energy (PDN.TO) price target cut to C$6.70 from C$7.10; outperform rating at Raymond James

* Shoppers Drug SC.TO price target raised to C$42 from C$40; rating hold at TD Newcrest

* The North West Co NWF.TO price target raised to C$23 from C$21; rating hold at TD Newcrest

$1= $0.99 Canadian Reporting by Kishan Nair and Bangalore Newsroom; editing by Jeffrey Hodgson

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