September 14, 2012 / 12:57 PM / in 5 years

CANADA STOCKS-TSX set to extend Fed-inspired rally

September 14 (Reuters) - Canada’s main stock index looked set to open higher, extending the rally also seen in global equity and commodity markets after the U.S. Federal Reserve unleashed a long-awaited stimulus program.

TOP STORIES

* Euro zone finance ministers pressed Spain to clarify whether it will seek financial support after the announcement of the European Central Bank’s new bond-buying program.

* The Federal Reserve launched another aggressive stimulus program on Thursday, saying it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.

* Euro zone finance ministers did not reach an agreement on the pricing of loans from the European Stability Mechanism at their meeting in Cyprus, an EU diplomat said.

* State-backed Royal Bank of Scotland is to press ahead with the forced sale of its Direct Line insurance division in what could be the biggest listing on the London Stock Exchange for more than a year.

MARKET SNAPSHOT

* Canada stock futures traded up 0.92 percent

* U.S. stock futures , , were up around 0.2 - 1.2 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 320.41; rose 0.93 percent

* Gold futures : $1,771.9; rose 0.16 percent

* US crude : $99.76; rose 1.47 percent

* Brent crude : $117.36; rose 1.28 percent

* LME 3-month copper : $8,390; rose 3.9 percent

CANADIAN STOCKS TO WATCH

* Manitoba Telecom Services Inc. : The telecommunications company said on Thursday it is undertaking a wide-ranging strategic review of its Allstream business that could potentially result in the sale of the unit that owns an extensive fibre optic network across Canada.

* Talisman Energy Inc. : The energy producer is giving up its eight-year-long effort to produce oil in Peru, the company said on Thursday, as it continues to shed assets in a bid to boost its share price.

ANALYST RECOMMENDATIONS

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

* Brookfield Renewable Energy Partners : Canaccord cuts target to C$28 from C$30 after the Brazilian government announced measures to reduce the cost of electricity in the country, affecting the energy company’s contracts.

* Macdonald, Dettwiler and Associates Ltd. : NBF cuts price target to C$63 from C$70 on uncertainty surrounding the company’s acquisition of the satellite manufacturing arm of Loral Space & Communications Inc.

* Petrominerales Ltd. : CIBC cuts rating to sector underperformer from sector performer and cuts target to C$8.50 from C$14 on disappointing exploration results from the Bromelia-1 well in the Deep Llanos Basin of Colombia.

* Thomson Reuters Corp. : Barclays cuts price target to $30 from $30.30 after the company’s half-year results where management was more bearish on recovery.

* Transat A.T. Inc. : CIBC raises price target to C$6 from C$5, Canaccord Genuity raises to buy from hold and raises price target to C$7 from C$4.25 based on the travel operator’s better-than-expected third-quarter results.

ON THE CALENDAR

* Major Canadian economic data includes manufacturing sales data

* Major U.S. events and data includes consumer price index, retail sales, industrial output and Reuters/University of Michigan sentiment index

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