April 17, 2013 / 12:43 PM / 4 years ago

CANADA STOCKS-TSX set to open lower on global economic concerns

4 Min Read

April 17(Reuters) - Canadian stock index futures were lower on Wednesday, dragged down by weaker commodity prices and global economic recovery concerns a day after the International Monetary Fund trimmed this year's world growth forecast.

Top Stories

* The Bank of Canada is seen as all but certain to hold rates steady at its policy announcement on Wednesday, but is expected to cut overly optimistic growth forecasts and possibly alter language about the need to raise rates.

* Bank of America Corp reported a lower-than-expected first-quarter profit and its revenue fell, sending the No. 2 U.S. bank's shares down 3 percent before the bell.

* Britain's biggest retailer, Tesco, wrote down the value of its global operations by $3.5 billion and announced plans to exit the United States, as it sought to rebuild after a year in which profit fell for the first time in two decades.

* BNY Mellon Corp said that first-quarter revenue fell 1 percent as the world's largest custody bank reported a loss due to a high-stakes tax battle with the U.S. Internal Revenue Service.

* Investment group IMIC is preparing a 147 million pounds offer for West Africa-focused miner Afferro, the biggest move yet in its strategy of building an Africa-orientated resources group.

* Intel Corp said its current-quarter revenue would decline as much as 8 percent and trimmed its 2013 capital spending plans, as personal computer sales drop due to the growing popularity of tablets and smartphones.

Market Snapshot

* Canada stock futures traded down 0.23 percent

* U.S. stock futures , , were down around 0.64 percent to 0.76 percent

* European shares, were down

Commodity Price Moves

* Thomson Reuters-Jefferies CRB Index : 282.2598; fell 0.52 percent

* Gold futures : $1,374.5; fell 0.89 percent

* US crude : $87.43; fell 1.45 percent

* Brent crude : $98.9; fell 1.01 percent

* LME 3-month copper : $7,096.75; fell 2.78 percent

Canadian Stocks to Watch

* Barrick Gold Corp : The mining company said on Tuesday it has tapped two high-profile mining executives to work on its suspended Pascua-Lama gold and silver mine project as it seeks to meet Chilean regulatory requirements to re-activate the project.

* TransCanada Corp : A U.S. House of Representatives panel advanced a bill on Tuesday that would give Congress the power, instead of the Obama administration, to approve the Keystone XL pipeline planned to link Canada's oil sands with Gulf Coast refineries.

* Jean Coutu Group Inc : The drugstore chain said it has sold 72.5 million shares in Rite Aid Corp, bringing its stake in the company to 11.7 percent. It sold the shares at an average price of $2.20 per share for net proceeds of $158.5 million.

Analysts' Recommendations

Following is a summary of research actions on Canadian companies reported by Reuters.

* Canfor Corp : RBC raises target price to C$20 from C$16 on higher EBITDA (earnings before interest, taxes, depreciation, and amortization) estimates.

* Cascades Inc : RBC raises target price to C$6.50 from C$5.50 citing above-consensus first-quarter earnings estimates.

* San Gold Corp : BMO cuts to underperform from market perform and cuts target price to C$0.20 from C$0.50 citing current the gold prices environment, sees a tough road ahead for the company.

* West Fraser Timber : RBC raises target to C$100 from C$80 on valuation citing above-consensus earnings estimates.

On the Calendar

* Major Canadian economic data includes Bank of Canada rate decision

* Major U.S. events and data includes Fed's beige book

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