January 11, 2011 / 1:33 PM / 7 years ago

CANADA STOCKS-TSX may open higher on rising commodity prices

4 Min Read

Jan 11 (Reuters) - Canadian stock index futures pointed to a higher open on Tuesday led by rising commodity prices.

Factors to Watch

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

* U.S. stock index futures rose as the fourth-quarter earnings season started with a strong profit beat from Alcoa and as Europe rebounded from recent losses. [.N]

* European shares rose as Alcoa (AA.N) results boosted sentiment ahead of the European earnings season. [.EU]

* Shares in China and Hong Kong rose, with optimism over strong economic growth and corporate earnings.

* Canadian housing starts fell 13.5 percent to a seasonally adjusted 171,500 units in December [ID:nHND005519]

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.59 percent in early trade.

* Oil rose above $89 per barrel on expectations that a key Alaskan pipeline would resume operations within a few days. [O/R]

* Gold rose for a second day, driven by deepening worries about the spread and severity of the European debt crisis and a pickup in demand from number two consumer China [GOL/]

* Copper prices climbed, buttressed by earnings season optimism and expectations of improving 2011 demand. Concerns over European debt and a stronger dollar tempered its advance. [MET/L]

Canadian Stocks to Watch

* Talisman Energy Inc TLM.TO. The independent oil producer forecast a 5 percent to 10 percent rise in production this year and expects exploration and development spending to be little changed as oil and gas prices remained uncertain. The company estimates 2010 production at about 415,000 boe/d and cash spending for 2011 expected at around $4 billion. [ID:nSGE70A07R]

* Daylight Energy Ltd DAY.TO: The oil and gas explorer forecast a 3 percent growth in total production for 2011, as it focuses on developing its light oil assets located in the Pembina region of Alberta. The company earmarked C$250 million in capital expenditures for 2011, with about $150 million allocated to its Pembina assets. [ID:nSGE70A07P]

* Baffinland Iron Mines BIM.TO: The winner of the battle for control of Baffinland may not be known for days after Nunavut Iron Ore and ArcelorMittal on Monday extended the deadlines on their competing bids. Nunavut Iron Ore sweetened its offer, adding one exchange right per common share to a bid worth C$1.45 a share in cash for 60 percent of Baffinland. ArcelorMittal, the world's largest steel company, said it would extend its C$1.40-a-share bid to Jan. 21. [ID:nN10262785]

* Canadian Natural Resources Ltd (CNQ.TO): The independent oil explorer and producer said it may be able to resume limited production at its Horizon oil sands plant in northern Alberta as key parts of the upgrader may still be able to function despite a fire last week. The company said in a statement there was a possibility that two of four drums in its coker unit were only slightly damaged the fire that forced the company to halt production at the 110,000-bpd facility. [ID:nN10269797]

* Goldcorp Inc. (G.TO): The gold miner said it produced 2.52 million ounces of gold in 2010, and aims to double its gold output by 2018 as six new mines fuel growth. [ID:nN10268469]

Analyst Recommendations

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

* Enbridge (ENB.TO) rating raised to buy from neutral; added to conviction buy list at Goldman Sachs

($1= $1.00 Canadian)

Reporting by Kishan Nair and Bangalore Newsroom

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