September 8, 2010 / 12:49 PM / 7 years ago

CANADA STOCKS-TSX may open higher, boosted by gold rush

TORONTO, Sept 8 (Reuters) - Toronto’s main stock index looked set to open higher on Wednesday as gold prices rose for a third day, but gains could be offset by weaker oil and base metals, with investors also looking to the Bank of Canada’s interest rate decision.

FACTORS TO WATCH

* Canadian equity futures <0#SXF:> pointed to a stronger open.

* Twenty-five of 41 forecasters polled by Reuters expected the Bank of Canada to raise its overnight target rate to 1 percent from 0.75 percent. [ID:nN03211893] [CA/POLL]

* U.S. stock index futures rose, tracking a turnaround in European stocks and ahead of comments from the Federal Reserve on the state of the economy. [.N]

* European shares firmed, as BP lifted oil majors after it released a report into its Gulf of Mexico oil spill, offsetting falls in banks on concerns over the financial sector’s resilience. [.EU]

* Markets in Asia fell, led by shares in Japan’s big exporters as a rise in the yen to a new 15-year high threatened to erode their overseas earnings.

* The Canadian dollar traded sideways against the greenback as investors waited to find out whether domestic interest rates will rise for the third time this year. [CAD/]

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.13 percent in early trade.

* Gold rose for a third day, nearing another record high as the waves of nervousness over the global economy steered investors into perceived safe-haven assets. [GOL/]

* Oil fell to around $74 a barrel, declining for a third straight session, but gaining European equity markets helped pare losses. [O/R]

* Copper eased as global growth jitters and concerns about the health of the European banking system weighed on prices. [MET/L]

CANADIAN STOCKS TO WATCH

* Anatolia Minerals Development Ltd ANO.TO: The gold producer agreed to buy Australia’s Avoca Resources AVO.AX for C$1.01 billion ($962 million) to create an intermediate global gold producer. [ID:nSGE6870GO]

* Suncor Energy Inc SU.TO: The company agreed to sell non-core UK North Sea assets to an affiliate of Dana Petroleum for C$390 million. [ID:nWNAB3952]

* Research In Motion RIM.TO: The BlackBerry maker bought some of the assets of Documents To Go developer DataViz and hired most of its workers to focus on supporting its smartphone platform, RIM said on Tuesday. [ID:nN07252362]

* Forzani Group FGL.TO: The retailer on Tuesday posted a narrower second-quarter loss than a year earlier but fell short of analyst forecasts, saying weak consumer confidence was holding back business at its retail stores. [ID:nN07244668]

ANALYST RECOMMENDATIONS

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

* Allied Properties REIT AP_u.TO price target raised to C$22 from C$20.50 at Raymond James

* Boardwalk REIT BEI_u.TO rating cut to market perform from outperform at Raymond James

* Calloway REIT CWT_u.TO price target raised to C$24.75 from C$22.25 at Raymond James

* Cominar REITCUF_u.TO rating cut to market perform from outperform at Raymond James

* First Capital Realty FCR.TO price target raised to C$16.50 from C$15.25 at Raymond James

* Killam Properties KMP.TO price target raised to C$10.25 from C$9.75 at Raymond James

* RioCan REIT REI_u.TO price target raised to C$21.75 from C$21.50 at Raymond James

* H&R REIT HR_u.TO price target raised to C$21.50 from C$19.50 at Raymond James

$1= $1.05 Canadian Reporting by Bangalore newsroom and Claire Sibonney; Editing by Jeffrey Hodgson

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