July 13 (Reuters) - Toronto’s main stock index could open higher on Tuesday as commodity prices rose on optimism over the global economic recovery.
The Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was up 0.62 percent in early trade. Canadian equity futures also pointed to a higher start. <0#SXF:>
Wall Street is set to open higher as the corporate earnings season gathers pace after Alcoa (AA.N) results beat forecast. [.N]
Gains in equities, however, could be capped by some nervousness over the outlook for euro zone peripheral countries after Moody’s Investor Service cut its rating on Portugal by two notches to A1.
European shares rose, extending a rally into a sixth session, on U.S. earnings optimism.
Asian equities were pressured by Chinese stocks, which slid on reports that Beijing will not relax tougher property measures any time soon.
Here is some news that could affect stock prices:
Oil reversed early losses on Tuesday to rise above $75 a barrel as optimism about the economic recovery and stronger demand offset a report showing oil demand growth will slow next year. [O/R]
Copper fell to a one-week low before edging up on Tuesday as weaker Chinese equities stoked concerns about slowing economic growth in the top metals consumer. [MET/L]
Gold prices rose back above $1,200 an ounce in Europe on Tuesday after a ratings agency downgrade of Portugal knocked the euro, boosting the metal’s appeal as a hedge against currency market volatility. [GOL/]
Strong demand from Canadian businesses and consumers triggered a surge in imports in May that outpaced exports, leading to the third consecutive trade deficit, according to Statistics Canada data on Tuesday. [ID:nN13232203]
Canadian stocks to watch include:
ROYAL BANK OF CANADA (RY.TO)
Royal Bank of Canada (RY.TO) is on the lookout for acquisitions but will likely wait until there is more clarity on regulatory changes before striking, its chief executive said on Tuesday. [ID:nLDE66C174]
ALAMOS GOLD INC (AGI.TO)
Canada’s Alamos Gold Inc (AGI.TO) said on Tuesday gold production in the second quarter fell about 9 percent, hurt partly by drought conditions, but forecast an increase in current quarter production. [ID:nSGE66C0CT]
BORALEX INC (BLX.TO)
Boralex Inc (BLX.TO), an alternative power producer, said on Monday it raised its offer to acquire the income trust it manages to an annual interest rate of 6.75 percent a year on the convertible debentures, and extended its offer. [ID:nSGE66C02Z]
GREAT PANTHER SILVER LTD (GPR.TO)
Canada’s Great Panther Silver Ltd (GPR.TO) on Monday reported higher second quarter production and said new equipment delivered in the first half of the year would lead to a significant increase in output in the latter half of the year. [ID:nSGE66B0IY]
GLUSKIN SHEFF + ASSOCIATES INC (GS.TO)
Canadian wealth manager Gluskin Sheff + Associates Inc (GS.TO) sees a 90 percent increase in performance fees on a sequential basis and said it may pay a special dividend. [ID:nSGE66B0IW]
Magma Energy Corp MXY.TO said on Monday it plans to raise about C$40 million ($38.8 million) through a share offering to help it pay for an increased stake in HS Orka hf, a geothermal company in Iceland. [ID:nN12206405]
Forbes Energy Services Ltd FRB.TO said on Tuesday its two workover rigs in Pennsylvania, idled after a well blowout last month, may now return to full service as it settled with the Pennsylvania Department of Environmental Protection. [ID:nSGE66C0E7]
Newport Partners Income Fund NPF_u.TO said on Monday it had extended a forbearance agreement with a syndicate of lenders by 90 days. [ID:nSGE66B0IR]
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
* Equinox Minerals Ltd EQN.TO rating cut to neutral from buy at UBS
* Stantec Inc (STN.TO) price target cut to C$32 from C$34; rating outperform at RBC
* Velan Inc VLN.TO price target cut to C$13.50 from C$15.50; rating market perform at BMO
$1=$1.03 Canadian Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson