August 2, 2011 / 12:17 PM / 8 years ago

TSX may open lower on global growth concerns

Aug 2 (Reuters) - Toronto’s main stock index looked set to open lower on Tuesday, with mining shares likely to drop on worries about the global economic recovery coupled with concerns over the euro zone debt crisis.


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

* Wall Street equity futures were lower as a last-minute congressional deal to raise the U.S. debt ceiling failed to assuage investor concerns about a possible credit rating downgrade. [.N]

* European shares fell for a third straight session to hit a 10-month low as bleak U.S. manufacturing data raised concerns about the health of the global economy, while charts pointed to further weakness for major equity indexes. [.EU]

* Asian stocks were down with the Nikkei falling 1.2 percent, although the heightened risk of intervention in currency markets by Japanese authorities lent support. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

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* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.19 percent in early trade.

* Oil fell on worries about the growth prospects of the United States, the world’s largest crude consumer, after weak global manufacturing data that overshadowed a deal to avert a U.S. debt default. [O/R]

* Gold traded within sight of record highs after a last-minute deal to avoid an unprecedented U.S. debt default and the first bullion purchase by Korea in 13 years, against a backdrop of growing economic pessimism. [GOL/]

* Copper extended a decline on concerns about demand growth, after data showed weaker manufacturing activity in top consumers China and the United States, but supply worries fueled by a strike at the world’s biggest copper mine limited losses. [MET/L]


* Imperial Oil Ltd. (IMO.TO): The company said on Saturday that it had advanced scheduled maintenance at its 82,000 barrel per day refinery at Dartmouth, Nova Scotia, and expects the facility will remain closed until mid-August. [ID:nN1E76T05Q]

* Air Canada ACa.TO: The carrier said it has reached a tentative agreement relating to compensation and benefits with the union that represents its flight attendants. [ID:nL3E7J13HT]

* Canaccord Financial Inc. (CF.TO): The investment bank and brokerage said on Sunday it agreed to buy half of Australian equities advisory firm BGF Capital Group Pty Ltd for A$40 million to expand into Australia and Hong Kong. [ID:nN1E76U0A8]

* Lundin Mining (LUN.TO): The mining group reported a 36 percent rise in quarterly profit as high copper prices offset lower grades of copper ore. [ID:nL3E7IT4L2]

* Arctic Glacier Income Fund AG_u.TO: The packaged ice maker said it reached an agreement with its lenders to waive some covenants in its credit facilities, taking some heat off the debt-ridden company. [ID:nL3E7IT4HV]

* Zarlink Semiconductor ZL.TO: The chipmaker said the Toronto Stock Exchange has deferred the acceptance of its rights plan till regulators review the plan. [ID:nL3E7IT4JA]


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

* Alliance Grain Traders Inc. (AGT.TO) price target cut to C$28.50 from C$30; rating outperform at National Bank

* Canaccord Financial Inc (CF.TO) price target cut to C$18.50 from C$20 at KBW

* Extendicare REIT EXE_u.TO price target cut to C$10 from C$11.50 at CIBC ($1= $0.96 Canadian) (Reporting by Shrutee Sarkar; Editing by Frank McGurty)

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