August 6, 2010 / 1:05 PM / in 7 years

CANADA STOCKS-TSX may open lower after weak jobs data

Aug 6 (Reuters) - Toronto’s main stock index could open lower after unexpectedly weak Canadian and U.S. jobs data raised concerns about the strength of the economic recovery.

Canadian equity futures pointed to a lower open <0#SXF:> and the Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was down 0.33 percent in early trade.

Canada’s economy unexpectedly shed 9,300 jobs in July, the first month it failed to create any this year, suggesting the country’s recovery from the recession is starting to cool. [ID:nN06197942]

U.S. stock index futures fell sharply on Friday after U.S. data showed a larger-than-expected drop of 131,000 in July non-farm payrolls. [.N]

Overnight, Asian markets were mixed with China’s key stock index closing up 1.44 percent as higher commodities prices lifted agricultural shares.

Here is some news that could affect stock prices:

OIL EASES

Crude oil prices slipped below $82 a barrel on Friday before a report expected to show U.S. employment declined in July, as investors watch for clues to the pace of economic and energy demand recovery. [O/R]

COPPER RISES

Copper rose on Friday as the market looked beyond moves by China to rein in property market lending and focused on forecasts of strong demand from the country, the world’s largest consumer. [MET/L]

GOLD STEADY

Gold prices held just below $1,200 an ounce in Europe on Friday, little changed from the previous session, as the dollar stayed in a holding pattern ahead of hotly awaited U.S. non-farm payrolls data later in the day. [GOL/]

C$ SLIPS

The Canadian dollar slipped to a session low against the U.S. currency on Friday, while government bonds climbed, after a Canadian employment report showed the economy posted its first job losses of the year. [CAD/]

Canadian stocks to watch include:

RESEARCH IN MOTION RIM.TO RIMM.O

A Saudi threat to cut off Blackberry Messenger services did not take immediate hold on Friday as users in Saudi Arabia were still able to access the service. Talks between RIM and the Saudi telecom regulator have made progress, a source with direct knowledge of the negotiations told Reuters. [ID:nLDE6750Q7]

-- Algeria’s government is reviewing the use of BlackBerry telephones and will ban the devices if it concludes they threaten national security, a newspaper quoted the telecommunications minister as saying early on Friday. [ID:nLDE674287]

SUNCOR ENERGY INC (SU.TO)

Canada’s largest energy company said on Thursday its oil sands production in July was up sequentially averaging about 322,000 barrels per day (bpd), and that it was still aiming for an average production of 280,000 bpd for 2010. [ID:nSGE6740MR]

MAGNA INTERNATIONAL MGa.TO

The Canadian auto parts maker swung back to profit in the second quarter, with sales up about two-thirds on the back of a revival in the battered North American car market. [ID:nSGE6750DP]

ENERPLUS RESOURCES FUND ERF_u.TO

The No. 4 Canadian energy trust posted a quarterly profit, but cut its 2010 production-volume outlook. [ID:nSGE6750EK]

GMP CAPITAL INC (GMP.TO)

GMP Capital second-quarter profit more than doubled, helped by strong performance at its capital markets segment. [ID:nSGE6750E1]

CONSTELLATION SOFTWARE INC (CSU.TO)

Constellation Software posted a quarterly profit that beat estimates, boosted by acquisitions in its public sector segment. [ID:nSGE6740NB]

IMRIS INC IM.TO

Imris on Thursday reported a narrower loss helped by higher sales, and said it sees a strong year of growth with conversion of backlog at a faster rate. [ID:nSGE6740MU]

SHAWCOR LTD SCLa.TO

The Canadian energy services company posted a 68 percent drop in quarterly profit, hurt by weakness in pipeline project activity in North America and Latin America. [ID:nSGE6740LR]

SUPERIOR PLUS CORP SPB.TO

Superior Plus on Thursday reported a second-quarter loss, partly hurt by seasonal losses at its energy services segment, and cut its full-year 2010 adjusted cash flow from operations view. [ID:nSGE6740M4]

DENISON MINES CORP (DML.TO) (DNN.A)

The Canadian uranium producer reported on Thursday a quarterly profit, partly helped by a fall in certain expenses. [ID:nSGE6740N7]

EPSILON ENERGY LTD EPS.TO

The oil and gas explorer posted a quarterly profit as cost of operations fell. [ID:nSGE6740NE]

FLINT ENERGY SERVICES LTD FES.TO

The Canadian oilfield service firm posted better-than-expected quarterly profit, helped by improved margins in its production services segment and higher volumes overall. [ID:nSGE6740LI]

RESEARCH ROUNDUP

Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]

* Canaccord Financial (CF.TO) price target raised to C$11 from C$10.50; rating neutral at Macquarie

* CCL Industries (CCLb.TO) price target raised to C$36 from C$35; rating outperform at Macquarie

* Paladin Energy PDN.TO price target raised to C$4.20 from C$3.80; rating market perform at Raymond James

* Penn West Energy Trust PWT_u.TO price target raised by C$1 to C$24; rating outperform at Macquarie

* Stantec Inc (STN.TO) price target raised to C$33 from C$28; rating outperform at Raymond James

* Trican Well Service Financial (TCW.TO) price target raised to C$18.50 from C$16.25 at Raymond James

* Westjet Airlines (WJA.TO) price target cut to C$15 from C$15.75 at Raymond James

$1=$1.02 Canadian Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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