June 21, 2012 / 12:52 PM / in 5 years

CANADA STOCKS-TSX may open lower as Europe and China data weigh

June 21 (Reuters) - Canada’s resource-heavy main stock index looked set to open lower on Thursday on a fall in commodity prices, as weak economic data from China and Germany added to investors’ woes after the U.S. Federal Reserve on Wednesday dashed hopes of a new round of quantitative easing.

TOP STORIES

* The downturn in the euro zone’s private sector is becoming entrenched and Chinese factories are finding the going increasingly tough, business surveys showed on Thursday, painting a darker outlook for the world economy.

* Spain’s Treasury sold 2.2 billion euros in medium-term bonds with yields on the 5-year paper rising to 15-year highs, hours before the government is expected to finalize a multi-billion euro rescue package for its banks.

* The Federal Reserve on Wednesday delivered another round of monetary stimulus and said it was ready to do even more to help a U.S. economic recovery that looks increasingly fragile.

* Angela Merkel’s government and the opposition reached an agreement on Thursday on economic growth measures for Europe that will allow Germany’s parliament to approve the permanent bailout scheme for the euro zone and the fiscal pact next week.

* Drugmaker Valeant Pharmaceuticals International Inc said it expects 2012 results to be at the top end of its previous forecast range.

MARKET SNAPSHOT

* Canada stock futures traded down 0.1 percent

* U.S. stock futures , , were up around 0.02 to 0.1 percent

* European shares, were up/down

COMMODITY PRICE MOVES

* Thomson Reuters-Jeffries CRB Index was down 0.58 percent.

* Gold Futures : $1598.9; fell 0.98 percent

* U.S. Crude : $80.69; fell 0.93 percent

* Brent Crude : $91.87; fell 0.90 percent

* LME 3-month Copper : $7411; fell 1.78 percent

CANADIAN STOCKS TO WATCH

* Yukon-Nevada Gold Corp. : The gold miner, which is considering options including a sale of the company, said its CEO, Robert Baldock, resigned. CFO Shaun Heinrichs and COO Randy Reichert will now also serve as co-CEOs, the company said in a statement.

* Gazit America Inc : Gazit-Globe Ltd said it plans to take Gazit America private for $7.32 per share, valuing the company at about $170.6 million.

* Encana Corp. : The natural gas producer will speed its hunt for oil and natural-gas liquids as it looks to diversify its production away from low-value natural gas, the company said on Wednesday.

* Imperial Oil Ltd. : The oil producer and refiner formally withdrew a highly contested plan to truck huge loads of equipment over a mountain pass on the Idaho/Montana border, having already moved them to its Alberta oil sands project via alternative routes.

* Niko Resources Ltd. : The oil and gas producer said total proved plus probable natural gas reserves have fallen almost 51 percent to 377 billion cubic feet equivalent as it struggles with low reserves at its KG D6 block in India.

* Telus Corp. : Globalive, an upstart entrant to Canada’s wireless industry that fought court battles over its own level of foreign ownership, has filed a complaint to the regulator over the concentration of foreign funding at its much larger rival Telus.

ANALYST RECOMMENDATIONS

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

* Oil & Gas: NBF cuts target prices on Canadian Natural Resources, Canadian Oil Sands, Enerplus Corp Petrobakken Energy and several others on expected cuts in E&P spending

* Alimentation Couche-Tard : NBF raises target price to C$49 from C$44 to reflect its higher earnings projections that account for a lower effective tax rate

* Longview Oil : CIBC cuts price target to C$11.50 from C$12.75 after the company cut its 2012 capital expenditure program

* Metro : NBF raises target price to C$60 from C$59 and keeps outperform rating; sees continued earnings growth in 2012 to support steady share price appreciation

ON THE CALENDAR

* Major Canadian economic data includes retail sales

* Major U.S. events and data includes initial jobless claims, manufacturing PMI, leading index and existing home sales

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