May 16, 2011 / 12:52 PM / 7 years ago

CANADA STOCKS-TSX set to open lower on weaker commodity prices

May 16 (Reuters) - Toronto’s main stock index is set to open slightly lower on Monday, weighed by weaker metal and oil prices, which fell on uncertainty about the global economy and a rise in risk aversion.

FACTORS TO WATCH

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

* U.S. stock index futures fell as investors shed riskier assets before euro zone finance ministers meet to discuss the region’s debt crisis. [.N]

* European shares fell, on track for a third session of losses, with banks slipping as the arrest of IMF chief Dominique Strauss-Kahn added fresh uncertainty to the euro zone debt crisis. [.EU]

* Japan’s Nikkei stock average hit a 1-month low to end just under a key technical level, hurt by volatile commodities as well as concerns about global growth.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.23 percent in early trade.

* Oil fell more than $1 per barrel Monday as worries over the restructuring of euro zone debt and doubts about the pace of global growth encouraged investors to reduce risk. [O/R]

* Gold was undermined by the dollar’s rise against the euro on uncertainty about aid for indebted euro zone countries, which also sparked some safe-haven buying of the precious metal. [GOL/]

* Copper slipped as the dollar strengthened and on lingering worries over a deepening euro zone debt crisis and further monetary tightening in top consumer China. [MET/L]

CANADIAN STOCKS TO WATCH

* TMX Group (X.TO): A group of Canadian banks and pension funds are hoping their C$3.6 billion offer for the operator of the Toronto Stock Exchange will keep the stock market from falling into foreign hands, but questions remained on Sunday whether that is reason enough to succeed. [ID:nLDE74F08H]

* Torex Gold Resources Inc (TXG.TO): The company said it has resumed exploration activities at its Morelos gold project in Mexico, nearly two months after it had suspended drilling there. [ID:nL4E7GG1O2]

* Ivanhoe Mines (IVN.TO): The company posted a wider net loss in the first quarter, due largely to a change in the fair value of a derivative, but the miner reiterated that it expects commercial production from the Oyu Tolgoi project in the first half of 2013. [ID:nL3E7GE00N]

* TransCanada Corp. (TRP.TO): Canada’s No. 1 pipeline firm restarted its 591,000 barrel per day Keystone oil pipeline on Friday, six days after a May 7 spill in a North Dakota pumping station. [ID:nN13258724]

* GLG Life Tech Corp (GLG.TO): The sweetener maker posted a wider first-quarter loss on higher costs. [ID:nL4E7GG1TE]

* Thomson Reuters (TRI.TO): The news and data provider launched on Monday an aggregation and algorithmic trading capability for users of its foreign exchange dealing platform in a push to improve its services to buy side customers. [ID:nLDE74F0R2]

Separately, the company should work to resolve a probe into the codes it allocates to company shares after rival S&P offered a fees cap to settle its own case, the EU’s competition chief said on Monday. [ID:nLDE74F0WK]

ANALYST RECOMMENDATIONS

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

* Bridgewater Systems Corp BWC.TO price target cut to C$7 from C$8 at CIBC

* Finning International Inc (FTT.TO) price target raised to C$32 from C$31 at CIBC

* First Capital Realty Inc (FCR.TO) price target raised to C$17.50 from C$17 at CIBC

* New Flyer Industries Inc NFI_u.TO price target cut to C$11 from C$11.50 at CIBC

* Power Financial Corp (PWF.TO) price target raised to C$33.50 from C$33.25 at CIBC

* San Gold Corp SGR.TO price target cut to C$3.60 from C$5.50; rating sector performer at CIBC

* Westfire Energy Limited WFE.TO rating cut to sector underperformer from sector performer CIBC

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

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