June 15, 2011 / 12:53 PM / in 6 years

CANADA STOCKS-TSX may open lower, weighed by euro zone debt woes

June 15 (Reuters) - Toronto’s resource-heavy main stock index looked set to open lower on Wednesday, as the latest turn in Europe’s ongoing debt crisis helped send commodity prices lower.

Euro zone finance ministers failed to agree how to make private creditors contribute to a second bailout for Greece, sending the euro EUR= down nearly 1 percent against the dollar and hurting the prices of other growth-oriented assets. [ID:nLDE75E0JC]

FACTORS TO WATCH

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

* U.S. stock index futures extended losses on Wednesday after data on consumer prices and manufacturing in New York State. [.N]

* European shares dipped early after euro zone ministers failed to agree on how to share the costs of a new bailout for Greece and with French banks placed under review for a downgrade by Moody‘s. [.EU]

* Markets in Asia were mixed, with Nikkei average edging higher helped by relief that U.S. retail sales had not fallen as much as feared, but gains were capped as investors lacked conviction about the economic outlook.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.61 percent in early trade.

* Oil fell after euro zone ministers failed to reach agreement on a second bailout for Greece, deepening worries over the health of the European economy and depressing the euro against a rising dollar. [O/R]

* Gold slipped as a stronger dollar prompted a flurry of sales, but investor buying sparked by sovereign debt concerns and inflationary pressures helped underpin sentiment. [GOL/]

* Copper rose to its highest in two weeks after a surprise rise in euro zone industrial output, but a strong dollar limited gains and investors remained wary. [MET/L]

CANADIAN STOCKS TO WATCH

* Breakwater BWR.TO: Nyrstar, the world’s biggest zinc producer said it is to buy Breakwater for C$619 million as it carries out its strategy to buy more mines and increase its self-sufficiency. [ID:nLDE61O0Q8]

* Canadian Imperial Bank of Commerce (CM.TO): CIBC World Markets, the investment banking arm of the company has agreed to settle a two-year investigation by Canadian market regulators into a violation of an options-contracts rule. [ID:nL3E7HE3LW]

* Kinross Gold (K.TO): The miner said it plans to buy 625,000 units of Edgewater Exploration Ltd EDW.V in a private placement. [ID:nL3E7HE3L5]

* Crystallex International Corp. KRY.TO: The gold miner said it will seek to restore permit to develop the Las Cristinas gold mine in Venezuela and compensation for the interim losses suffered. [ID:nL3E7HE3M1]

* Azure Dynamics AZD.TO: The maker of hybrid electric components for vehicles posted a first-quarter loss that was in line with market estimates, and said it expects results to strengthen in the second quarter, helped by the launch of a new vehicle. [ID:nL3E7HE3GO]

* Brigus Gold Corp. BRD.TO: The company posted a first-quarter profit as higher gold prices offset lower production and higher costs. [ID:nL3E7HE3I9]

* Crowflight Minerals CML.TO: The miner posted a first-quarter loss and said it plans to review operations at its flagship Bucko Lake nickel mine, as power outages and mining equipment delays have impaired performance at the Manitoba-based project. [ID:nL3E7HE3LN]

* OceanaGold OGC.TO:The company said it will start producing copper in concentrate from its long-delayed Didipio mine project in the Philippines in 2013 at an annual rate of 18,000 tonnes. [ID:nL3E7HF0VO]

* European Goldfields EGU.TO: The miner said Greece would decide within three weeks on awarding the company a permit to run two gold mines, a key project in the northern part of the country that has been delayed by a year. [ID:nL3E7HF0Z2]

ANALYST RECOMMENDATIONS

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

* Colabor (GCL.TO) coverage resumed with sector perform rating; price target of C$10.75 at National Bank

* Glacier Media (GVC.TO) price target cut to C$2.50 from C$2.75; rating sector perform at National Bank

* Sherritt International (S.TO) price target cut to C$9.25 from C$10.20 at CIBC

$1= $0.97 Canadian Reporting by Kishan Nair; Editing by Jeffrey Hodgson

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