April 24, 2012 / 1:07 PM / 6 years ago

CANADA STOCKS-TSX may open higher, Europe worries linger

April 24 (Reuters) - Toronto’s main stock index looked set for a higher open on Tuesday after a successful Dutch debt auction, but gains could be limited as investors remained cautious about the euro zone situation.

TOP STORIES

* Dutch long-term borrowing costs crept up at a bond sale on Tuesday after the government collapsed in a crisis over budget cuts but there was good demand from investors attracted by its top-notch credit rating.

* Diversified miner Teck Resources reported a 13 percent increase in quarterly operating earnings on Tuesday, as strong coal pricing and volumes more than offset the impact of a sharp decline in copper, zinc and lead prices.

* Royal Dutch Shell has agreed to buy Cove Energy for 1.12 billion pounds ($1.8 billion), lifting its offer to access East Africa’s huge gas reserves, but failing to quell hopes of a bid battle for the Mozambique-focused explorer.

* Canadian National Railway said its full-year earnings would come in at the top end of an earlier forecast after a mild winter and improving economy helped it lift first-quarter earnings by 16 percent, beating market expectations.

* Celestica Inc, a contract electronics manufacturer, posted a 44 percent rise in first-quarter net profit and said customer demand is stabilizing.

* Canadian property manager FirstService Corp posted a surprise first-quarter loss as revenue fell by a fourth in its property services segment.

MARKET SNAPSHOT

* Canada stock futures traded up 0.26 percent

* U.S. stock futures , , were up around 0.40 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jeffries CRB Index : 301.41; was up 0.34 percent

* Gold Futures : $1,636.3; rose 0.27 percent

* US Crude : $103.42; rose 0.30 percent

* Brent Crude : $118.63; fell -0.07 percent

* LME 3-month Copper : $8,108.25; rose 0.76 percent

CANADIAN STOCKS TO WATCH

* Senvest Capital : The company has entered the race to discover new natural gas reserves off Israel’s coast by buying a stake in an Israeli oil and gas explorer, the firm Israel Opportunity said.

* Brigus Gold Corp. : The gold miner’s quarterly production nearly doubled and the company said it expects a rise in full-year output as the development of its Black Fox underground mine in Ontario speeds up.

* Canadian Pacific Railway Ltd : The railroad company, which is in the final rounds of a tough proxy fight, said it has increased its quarterly dividend by about 17 percent to 35 Canadian cents per share.

* Telus Corp. : A major investor in the wireless carrier who opposes its move to scrap a dual-class share structure said the move would unfairly discriminate against holders of voting stock.

* First Uranium Corp. The miner said it received an unsolicited offer for its Ezulwini mine in South Africa from Waterpan Mining Corporation and Transalloys Ltd and that they have offered to pay $80 million for the gold-uranium mine, of which $10 million will be paid in advance as short-term bridge financing.

ANALYST RECOMMENDATIONS

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

* Canadian National Railway : CIBC raises price target to C$92 from C$90, Barclays raises price target to C$84 from C$82, National Bank Financial raises to outperform

* MBAC Fertilizer : Canaccord Genuity ups target to C$4.75 from C$4.70, rating buy

* NovaGold Resources Inc. : National Bank Financial cuts price target to C$8 from C$9

ON THE CALENDAR

* Major Canadian economic data includes retail sales

* Major U.S. events and data includes S&P Case/Shiller Home Price Index, consumer confidence and new home sales data

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