July 25, 2012 / 12:36 PM / 7 years ago

CANADA STOCKS-TSX may open higher on ECB rescue fund talk

July 25 (Reuters) - Toronto's main stock index looked set to
open higher on Wednesday, after European Central Bank (ECB)
Governing Council member Ewald Nowotny said there are arguments
for giving Europe's permanent rescue fund a banking licence.

    * ECB Governing Council member Ewald Nowotny has broken
ranks with ECB colleagues, saying that giving Europe's permanent
rescue fund a banking licence to increase its capacity had
    * Canadian Pacific Railway, fresh from a proxy
battle that ousted its chief executive officer and chairman,
reported a 20 percent drop in quarterly earnings on Wednesday
due to the impact of a strike by its engineers in May and
management transition costs. 
    * Britain's economy shrank far more than expected in the
second quarter of 2012, battered by everything from an extra
day's holiday to budget austerity and the neighboring euro zone
    * German business sentiment dropped in July to its lowest
level in more than two years, adding to signs that Europe's
largest economy is losing momentum along with its immunity to
fallout from the region's deepening debt crisis. 
    * Teck Resources Inc, Canada's largest diversified
miner, reported a drop in its second-quarter net profit of
nearly 65 percent, largely due to lower coal and metal prices.
    * Encana Corp reported a second-quarter net loss as
it wrote down assets because of declines in natural gas prices.
    * Precision Drilling Corp, Canada's largest oil and
gas drilling contractor, reported an 11 percent rise in
quarterly profit on higher rates but cut its adjusted capital
expenditure plan for the year citing lower-than-expected
industry activity.MARKET SNAPSHOT 
   * Canada stock futures traded up 0.60 percent
   * U.S. stock futures , , were up around 0.60
   * European shares, were up 

   * Thomson Reuters-Jefferies CRB Index : 296.39; rose
0.01 percent
   * Gold futures : $1,583.3; rose 0.46 percent 
   * U.S. crude : $88.59; rose 0.1 percent 
   * Brent crude : $103.38; fell 0.04 percent 
   * LME 3-month copper : $7,441; rose 0.32 percent

    * Ecopetrol : The oil company's consolidated net
profit fell 2.5 percent in the second quarter from a year
earlier to 3.65 trillion pesos, the company said on Tuesday,
lower than analyst expectations. 
    * Suncor Energy Inc : The oil producer and refiner
posted a second-quarter operating profit that beat analyst
expectations, helped by increased production and higher refinery
    * Bell Aliant Inc : The telecom services provider
posted a lower quarterly profit on higher costs. 
    * Centamin Plc : The gold miner said it had halted
operations at its flagship Sukari gold mine for a second time
this year due to labour unrest. 
    * Cenovus Energy Inc. : The independent oil
producer's second-quarter profit fell 40 percent on weaker
prices for oil and natural gas. 

    Following is a summary of research actions on Canadian
companies reported by Reuters. 
    * Augusta : Canaccord Genuity ups target to C$5.50
from C$4.80 on positive feasibility study for its proposed
Rosemont open-pit copper project, capital and costs in-line with
estimates, speculative buy
    * Brookfield Canada : CIBC ups target to C$30.50
from C$29 and rates sector performer on rising distribution,
steady internal growth and strong core markets
    * Ridgeline Energy : National Bank Financial cuts to
sector perform from outperform on fourth-quarter results below
expectations and slowing market for water segment
    * Rogers Communications : RBC lifts price target to
C$43 from C$42 better-than-expected second quarter operating
results, Canaccord raises target to C$39 from C$37
    * Thomson Reuters : Citigroup assumes coverage with
a buy rating, says the stock offers an attractive risk/reward
profile and signs of positive momentum in the financial and risk

    * Major U.S. events and data includes new home sales for
June and the weekly Mortgage Market Index
0 : 0
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