August 11, 2010 / 12:57 PM / 7 years ago

CANADA STOCKS-TSX may open lower on weak China data, Fed outlook

Aug 11 (Reuters) - Toronto’s main stock index looked set to open lower on Wednesday as commodity prices tumbled on renewed worries about U.S. growth prospects and weaker manufacturing data in China.

Canadian equity futures pointed to a lower open. <0#SXF:>. The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was down 0.53 percent in early trade.

Wall Street is also set for a lower start after the Federal Reserve’s gloomier assessment of the economy continued to rattle investors and the central bank’s measures to support the fragile recovery failed to reassure world markets. [.N]

China reported a slowdown in factory output, adding to the picture of softening domestic demand painted by other data a day earlier that showed a sharp drop in import growth. For details, see [ID:nTOE67A01A]

European shares fell as banks led a broad-based sell-off after the Bank of England inflation report echoed worries in the U.S. over the economic recovery.

Asian equities also tumbled, with Nikkei falling 2.7 percent, marking its worst day in nearly a month as a stronger yen deepened worries about the longer-term prospects for Japan’s economy and the technical outlook darkened.

Here is some news that could affect stock prices:

OIL FALLS

Oil fell below $80 on Wednesday, as a report from the International Energy Agency (IEA) warned of risks to demand. Economic fears and a sharp fall in equities deepened bearish sentiment. [O/R]

COPPER SLIPS

Copper tumbled to its lowest in more than a week on Wednesday as confidence crumbled in the face of dollar strength and renewed worries about growth prospects in the United States, the world’s largest economy. [MET/L]

GOLD SLIDES

Gold fell in Europe on Wednesday as a 1 percent rise in the dollar outweighed potentially supportive news that the U.S. Federal Reserve is holding interest rates at record lows and extending quantitative easing. [GOL/]

C$ EASES

The Canadian dollar extended its decline against the greenback on Wednesday morning as investors digested the Federal Reserve’s pessimistic view of the U.S. economy, leading them to shed riskier assets. [CAD/]

Canadian stocks to watch include:

RESEARCH IN MOTION RIM.TO RIMM.O

India may decide to temporarily shut down BlackBerry Messenger and email services if Research In Motion RIM.TO does not address security concerns in a meeting to be held between the government and operators on Thursday, government officials said. [ID:nSGE67A08S]

METRO INC MRUa.TO

The No. 3 Canadian grocer’s quarterly earnings climbed 6.6 percent, despite persistent food deflation, the company said on Wednesday. [ID:nN11201236]

ENBRIDGE INC ENB.TO

A U.S. regulator on Tuesday rejected Enbridge’s plan to restart a pipeline that spilled oil into a Michigan river system, adding further uncertainty about how soon it will resume service. [ID:nN10169784]

OPTI CANADA INC OPC.TO

Opti Canada said on Wednesday it would raise about $400 million through private placement of two separate tranches of secured notes, partly to fund ramp-up of its Long Lake oil project operations in Alberta. [ID:nSGE67A0FF]

FIRST QUANTUM MINERALS FM.TO

First Quantum Minerals said on Tuesday its second-quarter operating profit rose 14 percent, driven by increased gold production and a higher realized copper price. [ID:nN10165133]

OSISKO MINING CORP OSK.TO

Osisko Mining on Tuesday reported a higher quarterly loss on Tuesday because of increased costs as it pushed forward with its massive Malartic open pit gold mine. [ID:nN10185528]

QUEBECOR INC QBRa.TO QBRb.TO

The media and communications group reported a 22 percent rise in quarterly adjusted profit on Wednesday, helped mainly by strength at its telecommunications segment. [ID:nSGE67A0EO]

CASCADES INC CAS.TO

The packaging and paper-products company posted a quarterly profit that beat market estimates, and said it expects operating rates to remain at high levels in the third quarter. [ID:nSGE67A0E2]

WI-LAN INC WIN.TO

Technology licensing firm Wi-Lan Inc said on Wednesday it has settled all patent litigation with telecoms equipment maker UTStarcom Inc UTSI.O. [ID:nSGE67A0E5]

NAL OIL & GAS TRUST NAE_u.TO

NAL Oil & Gas Trust on Tuesday reported a quarterly profit, helped mainly by increased production of oil and natural gas and higher prices. [ID:nSGE6790KQ]

DAVIS + HENDERSON INCOME FUND DHF_u.TO

Davis + Henderson Income Fund on Tuesday posted a quarterly profit that topped market estimates by a cent, helped by higher sales at its loan registration technology services business. [ID:nSGE6790L5]

CANADIAN APARTMENT PROPERTIES REIT CAR_u.TO

Canadian Apartment Properties Real Estate Investment Trust CAR_u.TO on Tuesday posted higher second-quarter normalized FFO, helped by an increase in monthly rents and occupancy. [ID:nSGE6790JZ]

BLACKPEARL RESOURCES INC PXX.TO

The Canadian oil and natural gas exploration company on Tuesday posted a slightly wider-than-expected quarterly loss, hurt partly by less activity due to wet weather conditions. [ID:nSGE6790L7]

HANWEI ENERGY SERVICES CORP HE.TO

Hanwei Energy on Wednesday reported a first-quarter loss, as sales of the Canadian energy company slumped 74 percent on reduced deliveries of fibre reinforced plastics pipes in the Chinese and Kazakhstan markets. [ID:nSGE67A0E4]

MEDICAGO INC MDG.TO

Medicago is several years ahead of its competitors in the development and means to produce plant-based vaccines to respond rapidly to new strains of influenza, its CEO said on Tuesday. [ID:nN10164002]

POINTS INTERNATIONAL LTD PTS.TO

The company, which owns and operates reward program management website Points.com, on Tuesday posted a quarterly profit helped by improved margins and a fall in expenses, and restated its full-year financial outlook. [ID:nSGE6790K2]

SOFTCHOICE CORP SO.TO

The Canadian technology services provider’s quarterly profit nearly halved, hurt by a foreign exchange loss. [ID:nSGE6790KZ]

ALTAGAS LTD ALA.TO

AltaGas said on Tuesday it would raise C$200 million by selling preferred shares in a bought deal financing to reduce outstanding debt under its credit facilities. [ID:nSGE6790KM]

RESEARCH ROUNDUP

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

Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.

* Canadian Apartment Properties REIT CAR_u.TO rating raised to market perform from under perform at Raymond James

* Calloway REIT CWT_u.TO target price raised to C$22.25 from C$22; rating market perform at Raymond James

* Fortress Paper FTP.TO target price raised to C$40 from C$35; rating strong buy at Raymond James

* Petrobakken Energy PBN.TO target price cut to C$29 from C$36; rating outperform at Raymond James

* Uranium One UUU.TO target price raised to C$3.90 from C$3.50; rating outperform at Raymond James

$1=$1.03 Canadian Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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