July 26, 2010 / 12:54 PM / 7 years ago

CANADA STOCKS-TSX may open lower on weaker oil

4 Min Read

July 26 (Reuters) - Toronto's main stock index could open lower Monday as a tropical storm in the Gulf of Mexico faded, sending oil prices down.

Canadian equity futures pointed to a slightly lower open <0#SXF:>. The Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was also down 0.17 percent in early trade.

Wall Street is also set for a lower start as investors take a breather following last week's strong gains, as cautiousness prevailed ahead new home sales data. [.N]

Pharmaceutical stocks are expected to be in the spotlight after the Wall Street Journal reported GlaxoSmithKline (GSK.N) made a casual approach to Genzyme asking to be notified if Genzyme considered selling itself.

European stocks dipped led by drugmakers, eclipsing gains in most banking stocks.

Most Asian markets rose on profit-taking and as investors expect looser Chinese economic policies this year.

Here is some news that could affect Canadian stock prices:

Oil Falls

Oil fell moderately on Monday as Tropical Storm Bonnie faded over the Gulf of Mexico, but trading was cautious ahead of U.S. economic and corporate earnings data. [O/R]

Copper Rises

Copper rose on Monday due to expectations of improving prospects for demand growth and after European bank stress tests revealed no surprises. [MET/L]

Gold Up

Gold prices firmed on Monday, boosted by stronger physical demand from jewelry makers in Asia, but absent investors meant activity was subdued. [GOL/]

Canadian Dollar Little Changed

The Canadian dollar traded sideways against its U.S. counterpart on Monday, lacking significant direction as equities were mixed ahead of key U.S. economic data. [CAD/]

Canadian stocks to watch include:

BIOX CORP (BX.TO)

Canadian biodiesel producer Biox Corp (BX.TO) said on Monday it expects to post a wider loss in the third quarter compared with the second, hurt by a delay in reinstatement of the biodiesel tax incentive. [ID:nSGE66P0HA]

HIGH LINER FOODS INC (HLF.TO) HLF.A

High Liner Foods Inc (HLF.TO) HLF.A said on Monday its largest shareholder Scotia Investments Ltd will transfer its 37 percent holding of common shares in the Canadian company to Thornridge Holdings Ltd, and it granted a waiver under its shareholder rights plan. [ID:nSGE66P0H5]

Tembec Inc tmb.to

Tembec Inc TMB.TO said 680 unionized employees at its operations in Temiscaming, Quebec, ratified a collective bargaining agreement that could improve the competitive position of its operations there. [ID:nWNAB9153]

Research Roundup

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

Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.

* Cirrus Energy CYR.V target price cut to $1 from $2.50; rating outperform at Raymond James

* Enablence Technologies (ENA.V) target price raised to $0.45 from $0.35; rating market perform at Raymond James

* Industrial Alliance Insurance (IAG.TO) started with neutral rating; target price of $37 at Macquarie

* Delphi Energy Corp. (DEE.TO) price target cut to $3.25 from $3.50; rating neutral by Macquarie

($1=$1.03 Canadian)

Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Frank McGurty

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