October 12, 2011 / 12:42 PM / 6 years ago

CANADA STOCKS-TSX may open up on commods, Europe optimism

Oct 12 (Reuters) - Canada’s main stock index looked set to open higher on Wednesday, with miners in focus, as metal prices rose on signs of Chinese restocking.

FACTORS TO WATCH

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

* U.S. stock index futures rose, putting the benchmark S&P 500 on track for its sixth day of gains in seven, as Slovakia moved toward a deal on expanding the euro zone rescue fund. [.N]

* European shares hit a five-week high with miners boosted by stronger metals on signs of Chinese restocking and on expectations that Slovakia’s failure on Tuesday to ratify the euro zone’s rescue plan was a temporary blip. [.EU]

* A rebound in Chinese shares lifted most Asian stocks, but Nikkei fell, with the automobile sector hit on Thailand’s flood damage to factories ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at [CA/MNC] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.51 percent in early trade.

* Brent crude rose over $1 as strong euro zone data and growing hopes that a deal would be done on expanding the zone’s rescue fund prompted a move into riskier assets. [O/R]

* Gold rose 1 percent as the dollar slid to a four-week low against the euro. [GOL/]

* Copper prices rose, but concerns about the debt crisis in Europe and its implications on growth kept investors cautious. [MET/L]

CANADIAN STOCKS TO WATCH

* Research in Motion RIM.TO: Millions of BlackBerry users around the world were left without text communication services for a third day as RIM struggled to fix what it said was a switching failure in its private network. [ID:nL5E7LC1NA]

* Gran Colombia Gold (GCM.TO): The largest underground gold and silver producer in Colombia said its Mazamorras exploration camp was attacked by unknown invaders who set fire to buildings and caused considerable damage. [ID:nL3E7LC2C7]

* Bombardier Inc. (BBDa.TO)(BBDb.TO): Indonesian flag carrier PT Garuda Indonesia said it is in talks with Canada’s Bombardier and Brazil’s Embraer to buy 18 small-sized planes worth up to $720 million. [ID:nL3E7LC0P0]

* EXFO Inc. EXF.TO: The telecom services provider posted a 62 percent fall in quarterly profit and said it expected to post lower first-quarter earnings. [ID:nL3E7LB44G]

* Air Canada ACa.TOACb.TO: The Canadian government will step in to make sure a strike at Air Canada will not start on Thursday morning as scheduled, Labour Minister Lisa Raitt said on Tuesday. [ID:nN1E79A0G1]

* First Uranium Corp. FIU.TO: The uranium and gold producer said on Tuesday that its second-quarter gold sales rose 17.7 percent from the prior quarter and it is maintaining its full year outlook despite problems at both its projects in South Africa. [ID:nN1E79A1VQ]

ANALYST RECOMMENDATIONS

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

* Calfrac Well (CFW.TO) price target cut to C$48 from C$50 at RBC

* Canyon Services Group FRC.TO price target cut to C$17 from C$20 at RBC

* Capstone Mining CS.TO coverage started with outperform rating; C$4.25 target price at National Bank

* Cathedral Energy (CET.TO) price target cut to C$9.50 from C$10 at RBC

* Celtic Exploration CLT.TO coverage resumed with outperform rating at National Bank

* Crescent Point (CPG.TO) price target cut to C$50 from C$56 at CIBC

* Ensign Energy (ESI.TO) price target cut to C$22 from C$25 at RBC

* Exfo Inc EXF.TO rating cut to sector perform from outperform at National Bank

* PHX Energy Services (PHX.TO) price target cut to C$13.50 from C$14 at RBC

* Precision Drilling (PD.TO) price target cut to C$15 from C$19 at RBC

* Trican Well Service (TCW.TO) price target cut to C$26 from C$29 at RBC

* Trinidad Drilling (TDG.TO) price target cut to C$11 from C$12 at RBC ($1= $1.02 Canadian) (Reporting by Anil Kumar)

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