January 10, 2011 / 1:33 PM / 7 years ago

CANADA STOCKS-TSX may open lower on euro zone debt concerns

Jan 10 - Toronto’s main stock index futures pointed to a slightly lower open on Monday as concerns over the euro zone debt crisis dampened investors’ risk appetite.

FACTORS TO WATCH

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

* U.S. stock index futures fell as renewed concerns about the euro zone sovereign debt crisis overshadowed a number of large acquisitions. [.N]

* European shares fell, as concerns over the euro zone debt crisis dampened risk appetite ahead of a flurry of bond auctions this week, and with caution prevailing ahead of the U.S. earnings season. [.EU]

* Major Asian stocks were down with markets in Hong Kong and China retreating after a report that the southwestern Chinese city of Chongqing may impose a property tax in the current quarter. Indian shares fell 2.4 percent to six-week closing lows on rate increase jitters and fund inflow slow down fears.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.17 percent in early trade.

* Oil traded around 1 percent higher after a leak shut an Alaskan pipeline that carries 12 percent of U.S. crude output, but gains were capped by a strengthening dollar due to worries about Portugal’s debt. [O/R]

* Gold held near $1,370 an ounce in Europe as concerns about the prospects for Portugal’s sovereign debt helped offset downward pressure from a rising dollar. [GOL/]

* Copper fell 1 percent, as investors worried about debt problems in Europe and a rising dollar made metals costlier for non-U.S. investors. [MET/L]

CANADIAN STOCKS TO WATCH

* Canadian Natural Resources Ltd (CNQ.TO): A fire halted production at Canada’s largest independent oil producer’s main oil sands project in northern Alberta. The company could not say when its 110,000-barrel-a-day Horizon facility would resume normal operations, but it said it expects to have a repair schedule readied next week. [ID:nN07198897]

* HudBay Minerals Inc (HBM.TO): The company said it agreed to buy Norsemont Mining Inc NOM.TO for about C$362.8 million in cash and stock to gain access to a major copper deposit in Peru. HudBay’s offer values Norsemont at C$4.39 per share, a 3 percent premium to the stock’s Friday closing price of C$4.27 on the Toronto Stock Exchange. [ID:nSGE70908D]

ANALYST RECOMMENDATIONS

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

* Agrium Inc (AGU.TO) rating cut to hold from buy at TD Newcrest;

* Alamos Gold (AGI.TO) coverage started with outperform rating; price target of C$24 at Raymond James;

* Crocodile Gold CRK.TO coverage started with strong buy rating; price target ofC$2.40 at Raymond James

* Medoro Resources MRS.TO started with strong buy rating; price target of C$4.70 at Raymond James;

* Sulliden Exploration SUE.TO started with strong buy rating; price target of C$3.30 at Raymond James

($1= $1.00 Canadian)

Reporting by Kishan Nair and Bangalore Newsroom

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below