October 29, 2010 / 1:09 PM / 7 years ago

CANADA STOCKS-TSX may open lower, US GDP eyed

Oct 29 (Reuters) - Canada’s stock indexes could open lower on Friday as commodity prices fell.

FACTORS TO WATCH

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

* U.S. stock index futures briefly pared losses in choppy action on Friday after the government said economic growth edged up, as expected, in the third quarter. [.N]

* European shares fell by midday, with mining shares under pressure as the dollar edged up across the board and investors stayed cautious ahead of the release of U.S. third-quarter gross domestic product. [.EU]

* Asian stocks too ended lower dragged by Nikkei down 1.8 percent on signs of sluggish consumer electronics demand in Japan.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.1 percent in early trade.

* Oil fell toward $81 a barrel on a stronger dollar and signs that U.S. economic growth was slack in the third quarter, leaving expectations for monetary easing from the U.S. Federal Reserve unchanged. [O/R]

* Gold eased in Europe as the dollar firmed amid caution ahead of a U.S. Federal Reserve policy meeting next week, while palladium hit its highest in 9- years on expectations for a tightening market balance. [GOL/]

* Base metals fell and copper touched a three-week trough, as markets cut risk and investors turned cautious ahead of next week’s pivotal Federal Reserve meeting and the dollar steadied. [MET/L]

CANADIAN STOCKS TO WATCH

* Research In Motion RIM.TO: The BlackBerry-maker has set up an “interim arrangement” for lawful interception of BlackBerry Messenger services by India and has assured to provide a final solution by Jan. 31, the government said in a statement on Friday. [ID:nDEL003600]

* Brookfield Office Properties BANa.TO: The company, on Friday reported a 37 percent rise in third-quarter FFO, helped by an increase in number of square feet leased. [ID:nN28225013]

* Eldorado Gold (ELD.TO): The miner reported a slightly higher third-quarter profit on Thursday as company benefited from record-high bullion prices. [ID:nN28130646]

* Silver Standard Resources Inc. SSO.TO: The company on Friday agreed to sell its Snowfield and Brucejack projects in northern British Columbia to Pretium Resources Inc, a company led by its former CEO Robert Quartermain, for C$450 million in cash and stock. [ID:nSGE69S0DS]

* OceanaGold Corp. (OGC.TO): The gold miner said on Friday it will restart work on a gold and copper project in the Philippines in the first half of 2011, with initial capital cost estimated at $140 million over the next four to five years. [ID:nSGE69S0CR

* Canfor Corp (CFP.TO): The forest products company posted a surprise third-quarter profit on strong lumber demand from China, which offset the sluggish performance of North American markets. [ID:nSGE69R0N7]

* Celestica Inc. (CLS.TO): The contract electronics maker said on Thursday its adjusted profit rose slightly but trailed estimates on lower demand and delays. [ID:nSGE69R0IO].

* Dalsa Corp DSA.TO: The maker of high performance digital imaging and semiconductor solutions posted third-quarter results that beat market estimates, helped by strength at its digital imaging business. [ID:nSGE69R0MX]

* Fairfax Financial Holdings Ltd (FFH.TO): The company, which deals in property and casualty insurance and reinsurance, said on Thursday it acquired specialty insurer First Mercury Financial Corp. [ID:nN28146387]

* Heroux-Devtek Inc. (HRX.TO): The aerospace and industrial products maker posted quarterly results that missed estimates, hurt in part by weak performance at its landing gear products unit. [ID:nSGE69S0GP]]

* TransForce Inc TFI.TO: The trucker’s third-quarter earnings rolled in above analysts’ expectations fuelled by demand for its package, courier and specialized services. [ID:nSGE69Q0J6]

* Zarlink Semiconductor Inc ZL.TO: The chipmaker posted a second-quarter profit that beat analysts’ estimates, but warned that inventory rebalancing across the supply chain could affect its growth in coming quarter. [ID:nSGE69R0NL]

ANALYST RECOMMENDATIONS

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

* Cogeco Cable (CCA.TO) price target raised to C$48 from C$42; rating buy at Canaccord Genuity

* Canfor Corp (CFP.TO) price target raised to C$11.25 from C$10.50; rating outperform at Raymond James

* Cenovus Energy (CVE.TO) price target cut to C$35 from C$36; rating outperform at Raymond James

* Eastern Platinum ELR.TO price target raised to C$2.30 from C$2.10; rating outperform at Raymond James

* Mullen Group (MTL.TO) price target raised to C$15.75 from C$15; rating market perform at Raymond James

* Opti Canada OPC.TO price target cut to C$0.75 from C$1.25; rating market perform at Raymond James

* RioCan REIT (REI_u.TO) price target raised to C$23 from C$21.75; rating market perform at Raymond James

* Vermilion Energy (VET.TO) coverage started with market perform rating and C$41 target price at Raymond James

$1=$1.02 Canadian Reporting by Bangalore Newsroom; Editing by Jeffrey Hodgson

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