July 10, 2012 / 12:44 PM / 7 years ago

CANADA STOCKS-TSX may open higher on Europe hopes

July 10 (Reuters) - Canada’s main stock index looked set to open higher on speculation that Germany will provide more flexibility to use European bailout funds and as European Central Bank President Mario Draghi kept the door open to further interest rate cuts.


* Euro zone ministers struggled to reassure financial markets on Tuesday that an aid package for Spain they outlined overnight will help stabilize the currency bloc - a task made all the harder by a German legal challenge to its crisis-fighting tools.

* China’s June trade data on Tuesday stoked anxiety about the strength of domestic demand in the world’s second biggest economy as imports rose at only half the pace expected, signaling a need for Beijing to do more to bolster growth.

* The European debt crisis and disappointing growth in the United States and China are worrisome, but U.S. monetary policy is correct as it stands, a top U.S. Federal Reserve policymaker said.

* Barclays ex-Chief Executive Bob Diamond will forego his bonus this year and waive all of his unvested deferred bonus awards and long-term share awards, Barclays said on Tuesday.

* Canadian pharmacy chain Jean Coutu Group Inc reported a higher first-quarter profit on a gain related to the sale of its stake in Rite Aid drug stores.


* Canada stock futures traded up 0.36 percent

* U.S. stock futures , , were up around 0.3 to 0.5 percent

* European shares, were up


* Thomson Reuters-Jefferies CRB Index : 292.59; fell 0.04 percent

* Gold Futures : $1,588.6; was unchanged

* US Crude : $85.9; fell 0.1 percent

* Brent Crude : $99.48; fell 0.84 percent

* LME 3-month Copper : $7,557.5; fell 0.03 percent


* Bombardier : Latvia-based Air Baltic Corp has signed a letter of intent to buy 10 CS300 aircraft from Bombardier worth $764 million at list prices, the two firms said at the Farnborough Airshow on Tuesday.

* Research In Motion Ltd. : A delay in the launch of the new generation of BlackBerrys until next year will give retailers more time to focus on the revamped smartphones once they hit store shelves, RIM’s new marketing chief said on Monday.


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

* Genivar Inc. : NBF resumes coverage with outperform, following the company’s acquisition of engineering consultant firm WSP Group.

* Legacy Oil + Gas : NBF resumes coverage with outperform after the company’s sale of Alberta Bakken assets to Bowood Energy Inc was approved by Bowood’s shareholders

* Mining companies: Raymond James cuts price target on Baja Mining Corp to C$0.40 from C$0.45 and on Inmet Mining to C$73 from C$79, in response to the ongoing European sovereign debt crisis and subdued demand for metals in China.

* North American Palladium : Macquarie cuts target to C$4.50 from C$5.50 after the company indicated that heavy rain and flooding are expected to result in several one-time costs in the quarter.

* Petrobakken Energy : Barclays cuts target to C$20 from C$21 on valuation; maintains overweight rating


* Major Canadian economic data includes housing starts

* Major U.S. events and data includes Redbook chain store sales and IBD economic optimism

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