September 25, 2012 / 12:47 PM / in 5 years

CANADA STOCKS-TSX may open higher, euro zone still a concern

Sept 25 (Reuters) - Canada’s resource heavy main stock index looked set to open higher on Tuesday, helped by strength in commodities, though gains might be capped by uncertainty over a possible Spanish bailout and report that Bundesbank lawyers were checking the legality of the European Central Bank bond-buying plan.

TOP STORIES

* Greece may seek a rollover of its ECB-held bonds or try to raise additional short-term debt to plug a possible financing gap in the coming years, a deputy finance minister said in a document released.

* Chancellor Angela Merkel said that Europe could only hope to come out of its crisis stronger and compete in a globalised world if its members pressed ahead with painful reforms and moved to more responsible budget policies.

* German Economy Minister Philipp Roesler said that purchases of sovereign bonds by the European Central Bank could pose a medium-term risk and that adherence to strict conditionality was important.

* The European Central Bank and Germany’s Bundesbank are examining the legality of the ECB’s new bond-buying program, a German newspaper said, pointing to another possible barrier to moves to end the euro zone debt crisis.

* Cellphone maker Nokia unveiled two new affordable touch-screen cellphone models to defend its mass market position while it struggles to compete in high-end smartphones.

MARKET SNAPSHOT

* Canada stock futures traded up 0.06 percent

* U.S. stock futures , , were up around 0.1 percent - 0.2 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 307.61; rose 0.55 percent

* Gold futures : $1,762.1; were unchanged 0 percent

* US crude : $92.8; rose 0.95 percent

* Brent crude : $110.9; rose 0.99 percent

* LME 3-month copper : $8,247.25; rose 0.79 percent

CANADIAN STOCKS TO WATCH

* Enbridge Inc. : A lawyer for the pipeline operator said on Monday that a prominent economist opposed to its Northern Gateway oil pipeline to Canada’s West Coast is wrong in her contention that the project will raise costs for refiners, regardless of where their crude comes from.

* Forbes & Manhattan Coal Corp. : The coal miner said on Monday it plans to acquire two South African coal mines from a unit of Rio Tinto in a bid to boost its output and enlarge its footprint in Africa.

* Husky Energy Inc. : The integrated oil producer and refiner declared on Monday it had reached an impasse with the United Steelworkers union in a four-month strike at the company’s 155,000 barrel-per-day Lima, Ohio, refinery.

ANALYST RECOMMENDATIONS

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

* AGF Management Ltd. : CIBC raises target to C$13 from C$12, says strategic execution trumps earnings results at this point

* Coastal Energy Co. : Canaccord Genuity raises target to C$25 from C$21 following another successful test result from the company’s Songkhla A-10 well offshore Thailand which tested 4,000 barrels of oil per day

* Hanfeng Evergreen Inc. : Canaccord Genuity cuts target to C$1.45 from C$1.85 after the fertilizer maker’s fourth-quarter earnings missed estimates

* Pacific Rubiales Energy Corp. : CIBC cuts rating to sector performer from sector outperformer due to recent outperformance relative to its peer group and an expected lack of production and reserve growth in 2012

* Yamana Gold Inc. : RBC raises price target to $24 from $21, expects the company to report a record quarter for gold output from its new mines, C1-Santa Luz and Ernesto/Pau-au-Pique, which are on track for start up later this year

ON THE CALENDAR

* Major Canadian economic data includes retail sales data

* Major U.S. events and data includes S&P Case Shiller home prices and consumer confidence index

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