November 23, 2011 / 1:54 PM / 6 years ago

TSX may open down on global economy, debt concerns

(Reuters) - Canadian stocks looked set to open lower on Wednesday as poor data from China heightened concerns over global growth, while a disappointing German bond sale increased investor uncertainty.

FACTORS TO WATCH

* Canadian equity futures pointed to a lower open.

* U.S. stock index futures were lower as worries over Europe once again weighed on investor sentiment, putting the S&P 500 on track for a sixth day of losses. .N

* European stocks fell, with a blue-chip index down for the fifth session in a row, as poor demand at a German government bond sale spurred fears the euro zone debt crisis was spreading to its strongest economy. .EU

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 1.03 percent in early trade.

* Oil fell, dented by weak economic data in China and the United States, while euro zone debt worries and sluggish growth also kept investors wary of holding demand sensitive commodities.

* Gold fell in line with a drop in the euro, which came under pressure as investor anxiety deepened over the European debt crisis, prompting the resulting rise in the U.S. dollar to mitigate the impact of safe-haven bullion buying.

* Copper hit a one-month low, on worries a global slowdown would corrode demand after factory growth in top consumer China slowed in November while a poor bond sale in Germany intensified concerns about the euro zone debt crisis.

CANADIAN STOCKS TO WATCH

* Nexen Inc.NXY.TO: The oil producer confirmed its exit from Yemen’s Masila oilfield, the troubled Arab country’s largest, after its government refused to renew the company’s operating license.

* Franco-Nevada Corp. (FNV.TO): The royalty and metal streaming company said on Tuesday it will raise C$340 million ($327 million) through an equity financing, with the money earmarked for acquisitions and working capital.

ANALYST RECOMMENDATIONS

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

* AbitibiBowater ABH.TO rating cut to sector perform from outperform at RBC

* Alliance Grain Traders (AGT.TO) price target cut to C$22.50 from C$25.00 at National Bank Financial

* George Weston Ltd WN.TO price target cut to C$74 from C$78 at CIBC

* H&R REIT (HR_u.TO) price target raised to C$24 from C$23.50 at RBC; price target raised to C$26 from C$24 at TD Securities

* Shawcor Ltd SCLa.TO price target raised to C$35 from C$33 at RBC

* Viterra Inc VT.TO price target cut to C$8.75 from C$9.00 at National Bank Financial

($1= $1.04 Canadian)

Reporting By Chandra Ramarathnam; Editing by Jeffrey Hodgson

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