May 28, 2013 / 12:34 PM / in 4 years

CANADA STOCKS-TSX may open higher as ECB, BoJ stand by monetary easing

May 28 (Reuters) - Canada’s main stock index looked set to open higher as investors took cheer after top officials in the European Central Bank and the Bank of Japan pledged their support for continued monetary easing.

TOP STORIES

* Bank of Nova Scotia said that quarterly profit rose 9.6 percent, as domestic retail banking income was helped by last year’s acquisition of online lender ING Direct.

* The European Central Bank can still cut interest rates further to stimulate the economy if needed, ECB Executive Board member Peter Praet said.

* Bank of Japan board member Ryuzo Miyao said it was vital to keep long- and short-term interest rates stable but offered no new prescriptions to contain the recent bond market turmoil that has threatened to undercut the central bank’s massive easing campaign.

* Europe must urgently tackle youth unemployment, the French, German and Italian governments said, urging action to rescue an entire generation who fear they will not find jobs.

* Offshore oil driller, Seadrill, beat forecasts with record core earnings in the first quarter and it said high day rates and expected orders would make the second quarter strong too.

MARKET SNAPSHOT

* Canada stock futures traded up 0.58 percent

* U.S. stock futures , , were up around 0.68 percent and 0.92 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 286.3144; rose 0.32 percent

* Gold futures : $1,380.8; fell 0.43 percent

* US crude : $95.11; rose 1.02 percent

* Brent crude : $104.14; rose 1.48 percent

* LME 3-month copper : $7,294; fell 0.07 percent

CANADIAN STOCKS TO WATCH

* Valeant Pharmaceuticals International : The drugmaker said that the U.S. Food and Drug Administration denied approval for its drug to treat onychomycosis, a fungal infection of the nail. The regulator raised questions about manufacturing and controls related to the drug’s container in a complete response letter to the company.

ANALYSTS’ RECOMMENDATIONS

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

* Kinross Gold Corp : RBC raises target price to $8 from $7 to reflect that the miner should continue to outperform due to continued optimization of existing mines

* Valeant Pharmaceuticals International Inc : Susquehanna raises target price to $105 from $84, says the acquisition of Bausch & Lomb makes sense and the financial parameters seem better than expected

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes consumer confidence, Richmond Fed manufacturing and Dallas Fed manufacturing data

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