July 14, 2010 / 12:59 PM / 9 years ago

CANADA STOCKS-TSX may open higher on hope for strong earnings

July 14 (Reuters) - Toronto’s main stock heavy index could open higher on Wednesday on growing optimism that second-quarter company results will top expectations.

Wall Street is also set for a higher start, setting the stage for a seventh straight day of gains, after technology bellwether Intel (INTC.O) reported better-than-expected quarterly earnings. [.N]

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

European shares turned negative, with banks losing ground on concerns about stringent rules for the sector. Most Asian stocks rose with the Nikkei closing 2.71 percent up.

Here is some news that could affect stock prices:


Oil eased to below $77 a barrel on Wednesday, falling from a two-week high, after a weekly industry report showed a surprise increase in U.S. crude inventories and European equities turned lower. [O/R]


Copper climbed higher on Wednesday, boosted by higher equity markets and a stronger euro on the back of an improvement in risk appetite, while a hefty drop in copper inventories have also offered support. [MET/L]


Gold consolidated above $1,210 an ounce in Europe on Wednesday after rising 1 percent in the last session on the back of resurgent fears over euro zone debt levels, with a retreat in risk aversion capping gains. [GOL/]


The Canadian dollar softened against the greenback on Wednesday, as investors took their cue to sell growth-related currencies from weaker European markets and easing oil prices. [CAD/]

Canadian stocks to watch include:


U.S. teen apparel retailer Zumiez Inc (ZUMZ.O) said on Wednesday it is no longer interested in buying Canada’s West 49 Inc WXX.TO due to disagreements on the terms of the due diligence process, handing a victory to rival bidder, Australia’s Billabong International Ltd BBG.AX. [ID:nSGE66D050]


Corus Entertainment (CJRb.TO) reported a quarterly profit on Wednesday, citing strengthening advertising sales in both its television and radio segments. [ID:nN13265871]


Sprott Inc (SII.TO), one of Canada’s best-known fund managers, said on Tuesday Peter Grosskopf will take over as chief executive effective Sept. 7. [ID:nSGE66C0IU]


Canada’s ISE Ltd ISE.TO said its ability to continue as a going concern is dependent on securing additional capital, barely four months after the company went public. [ID:nSGE66C0J2]


Canada’s Pulse Seismic Inc (PSD.TO) said on Wednesday it raised the cash portion of its planned acquisition of certain assets from Divestco Inc DVT.TO by about 11 percent and amended some other terms, in response to an unsolicited competing offer. [ID:nSGE66D0FX]


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

* Alamos Gold Inc (AGI.TO) price target raised to C$15.85 from C$14.80; rating hold at Canaccord Genuity

* Canadian National Railway (CNR.TO) rating raised to outperform from market perform; price target raised to C$70 from C$67 at Raymond James

* Guyana Goldfields Inc (GUY.TO) rating started with outperform and C$9 target price at Raymond James

($1=$1.03 Canadian)

Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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