October 28, 2010 / 12:54 PM / 7 years ago

CANADA STOCKS-TSX may open higher on commodity prices

6 Min Read

Oct 28 (Reuters) - Canadian stocks could open higher on Thursday as corporate earnings fueled optimism and commodity prices rose on falling U.S. dollar.

Factors to Watch

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

* The Canadian dollar firmed against its U.S. counterpart on Thursday with the greenback giving back some of the gains made earlier this week as a short-covering rally fizzled and U.S. Treasury yields fell. [CAD/]

* U.S. stocks rose modestly on Thursday as the dollar slipped with investors adjusting expectations of further monetary stimulus, while data on the labor market was due later in the morning. [.N]

* European stocks were up around midday on Thursday, led by shares of telecom and oil companies after solid results from France Telecom, Royal Dutch Shell and Eni. [.EU]

* Asian stocks steadied after their biggest one-day fall in four months, while the yen held firm against a broadly weaker dollar, taking details of the Bank of Japan's stimulus plan in its stride.

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.47 percent in early trade.

* Oil prices edged up on Thursday supported by forecast-beating profits from Royal Dutch Shell and Italy's Eni, as investors awaited U.S. weekly jobless data due later. [O/R]

* Gold rose back towards $1,330 an ounce in Europe on Thursday as fresh dollar weakness reversed the previous session's decline, but trading was cautious ahead of Federal Reserve talks on monetary easing next week. [GOL/]

* Copper rose on Thursday as the dollar slipped, with investors awaiting next week's key U.S. Federal Reserve talks on monetary easing and as the prospect of a mine strike in Chile lent support to the metal. [MET/L]

Canadian Stocks to Watch

* Barrick Gold (ABX.TO): The world's top gold miner on Thursday reported a 75 percent increase in its third-quarter profit, as strong bullion prices boosted earnings. [ID:nN28108425]

*Potash Corp (POT.TO) posted a 62 percent rise in quarterly earnings on Thursday, far surpassing forecasts, as a run-up in grain prices spurred robust demand for fertilizer from the world's No.1 supplier.

* Ottawa is growing skeptical of BHP Billiton's (BHP.AX) $39 billion hostile takeover bid for Potash Corp (POT.TO), a Canadian newspaper reported on Thursday.

*Celestica Inc (CLS.TO): The contract electronics maker posted a third-quarter profit that trailed estimates, hurt by lower demand, but said it expects revenue to rise in the current quarter. [ID:nSGE69R0IO]

*Cogeco Inc. CGO.TO: The media and telecoms company and Cogeco Cable (CCA.TO) subsidiary on Thursday reported lower fourth-quarter results, but backed their fiscal 2011 forecast. [ID:nSGE69R0GJ]

*Goldcorp Inc. (G.TO): The gold miner reported solid quarterly profits on Wednesday, on record bullion prices. Goldcorp reported a 65 percent increase in third-quarter earnings and doubled its annual dividend payout. [ID:nN27265533]

*Thomson Reuters Corp. (TRI.TO): The news and data provider on Thursday raised its full-year revenue forecast after third-quarter revenue in its Markets division, which serves banks and other financial institutions, rose for the first time in nearly two years. [ID:nN25279353]

*Agnico-Eagle Mines (AEM.TO): The gold miner reported solid quarterly profits on Wednesday, on record bullion prices. Agnico jumped to a third-quarter profit from a year-ago loss, when its results were hurt by a foreign exchange-related charge and production issues at its new mines. [ID:nN27265533]

*Husky Energy Corp. (HSE.TO): The company said an equipment failure led to acid gas flaring at its 150,000 barrel-per-day refinery in Lima, Ohio, according to a filing with regulators. [ID:nWNAB7510]

*Macdonald Dettwiler and Associates (MDA.TO): the Canadian satellite and data distribution company said on Wednesday its net profit jumped 34 percent in the third quarter and that it had a strong order backlog. [ID:nN27145146]

*Onex Corp OCX.TO: The leading private equity firm said on Wednesday it expected to raise up to C$300 million with the initial public offering of its high-yield debt fund, known as the OCP Senior Credit Fund. [ID:nN27264431]

*Opti Canada Inc OPC.TO: The company posted a third-quarter loss, hurt in part by a 23 percent rise in operating expenses due to planned well work-overs and increased operating levels. [ID:nSGE69Q0N4]

*RioCan Real Estate Investment Trust REI_u.TO: The company's quarterly funds from operations beat market estimates by a cent, helped by the acquisitions it made in the quarter. [ID:nSGE69Q0N7]

*Nexen Inc. NXY.TO: The independent oil producer posted a four-fold jump in quarterly profit, helped by sales of its non-core assets in Canada and the United States, and said it plans to generate about US$1.5 billion in asset sales in the next 12 months. [ID:nSGE69R0HM]

Analyst Recommendations

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

* Firstservice (FSV.TO) target price raised to $27 from $25; rating market perform at Raymond James

* Paladin Energy (PDN.TO) target price cut to C$5 from C$5.10; rating outperform at Raymond James

($1= $1.02 Canadian)

Reporting by Bangalore Newsroom

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