October 17, 2011 / 12:17 PM / 7 years ago

TSX may open lower as Europe optimism fades

Oct 17 (Reuters) - Toronto’s main stock index looked set to open lower on Monday after the German finance minister said an EU summit on Oct 23 would not produce a decisive agreement on resolving the euro zone debt crisis, dampening earlier hopes.


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

* U.S. stock index futures fell after the market’s best two-week run since 2009 as Germany’s finance minister said a forthcoming European summit would not yield a definitive solution to the region’s debt crisis. [.N]

* European shares reversed earlier gains to trade down after Germany warned against unrealistic “dreams” that this weekend’s European Union summit will produce a definitive plan to tackle the region’s sovereign debt crisis. [.EU]

* Asian shares rose with the Nikkei average edging up to a six-week high. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^


* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.09 percent in early trade.

* Brent crude extended losses and U.S. crude turned negative following remarks from Germany that the forthcoming EU summit would not produce a definitive solution to the euro zone debt crisis. [O/R]

* Gold jumped to a three-week high, boosted by fresh investor interest and a softer dollar against the euro after a G20 summit reinforced hopes that European leaders would soon resolve the region’s debt crisis. [GOL/]

* Copper rallied to a three-week peak as prospects for a resolution to the euro zone’s debt crisis spurred risk appetite, while supply concerns gathered momentum due to strikes in Peru and Indonesia. [MET/L]


* Research In Motion Ltd. RIM.TO: The Blackberry maker said it will offer free premium apps worth more than $100, in a bid to appease its customers following BlackBerry service disruption last week. [ID:nL3E7LH182]

* Sun Life Financial (SLF.TO): The insurer said it expects to post a loss in its third quarter due to the impact of unfavorable moves in both interest rates and equity markets. It expects to report a loss of C$621 million in the quarter. [ID:nN1E79G066]

* Imax Corp IMX.TO: The giant movie screen maker will license laser projection technology from struggling Eastman Kodak Co in a deal that will enable more Imax theaters to show digital films. [ID:nN1E79F06O]

* Arctic Glacier Income Fund AG_u.TO: The fund has gained five more days to announce the results of its strategic alternatives review, extending a mutual agreement between it and two warring unitholders. [ID:nL3E7LH1J0]

* Mitec Telecom Inc. MTM.TO: The mobile wireless products maker posted a wider quarterly loss hurt by reduced sales at its wireless and VSAT divisions. [ID:nL3E7LE3CJ]


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

* Daylight Energy DAY.TO reinstated with sector performer rating at CIBC

* Finning International (FTT.TO) price target cut to C$28 from C$32 at CIBC

* Novagold Resources (NG.TO) price target cut to $11 from $16 at RBC

* Torstar Corp (TSb.TO) price target cut to C$11.50 from C$13 at National Bank ($1= $1.01 Canadian) (Reporting by Anil Kumar)

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