May 29 (Reuters) - Toronto’s main stock index looked set to open lower on Wednesday ahead of a Bank of Canada rate decision, as robust U.S. economic data led to speculation the U.S. Federal Reserve would soon begin tapering back its bond-buying program.
Shares of Bank of Montreal were also expected to weigh after the lender said its second-quarter net profit fell 5 percent, due to lower net interest margins in its Canadian business.
* The recession-hit euro zone will fall further behind a generally improving United States and a rebounding Japan this year, the OECD said on Wednesday, cutting its global growth forecasts.
* The International Monetary Fund cut its growth forecast for China this year to 7.75 percent from 8 percent, citing a weak world economy and exports, adding to concerns that the world’s second-largest economy is losing momentum.
* China’s Shuanghui Group has agreed to buy Smithfield Foods for around $5 billion in cash, a person with knowledge of the matter told Reuters.
* The number of Germans out of work jumped more than forecast in May on a seasonally adjusted basis due partly to bad weather but the unemployment rate remained close to its lowest level since Germany reunited more than two decades ago.
* Canada stock futures traded down 0.55 percent
* U.S. stock futures , , were down around 0.59 percent and 0.65 percent
* European shares, were down
* Thomson Reuters-Jefferies CRB Index : 285.9376; fell 0.17 percent
* Gold futures : $1,379.1; was unchanged 0 percent
* US crude : $94.42; fell 0.62 percent
* Brent crude : $103.98; fell 0.24 percent
* LME 3-month copper : $7,263; fell 0.82 percent
* Centerra Gold Inc : Hundreds of villagers blocked the only road to the company’s flagship gold venture high in Kyrgyzstan’s Tien Shan mountains, threatening to move in on the mine unless the government tears up its agreement with the investor.
Following is a summary of research actions on Canadian companies reported by Reuters.
* Bank of Nova Scotia : National Bank Financial cuts target price to C$67 from C$68 after the bank reported weak second-quarter earnings, says its capitalization is strong but the prospect for share repurchases remains uncertain.
* Enerplus Corp : RBC cuts to sector perform from outperform on the basis of the company’s share price appreciation and potential return.
* Gran Tierra Energy : Paradigm Capital raises target to C$9 from C$8 after the company announced successful testing of its Bretana Norte 95-2-1XD well, which was targeting the oil-bearing Vivian sandstone formation.
* Major Canadian economic data include Bank of Canada rate decision
* No major U.S. economic data scheduled for release