October 3, 2011 / 12:53 PM / 6 years ago

CANADA STOCKS-TSX may open lower; Greece worries hit commodities

Oct 3 (Reuters) - Canada’s main stock index looked set to open lower on Monday as investors sold off risky commodities after Greece said it will miss its deficit targets for the year.

FACTORS TO WATCH

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

* U.S. stock index futures were modestly lower on Monday, extending equities losses from the previous session as concerns over Greece’s teetering finances returned to the forefront. [.N]

* Greece’s admission that it will miss its deficit targets for this year and next hit European shares on Monday, with banking stocks among the worst performers. [.EU]

* Asian stocks also fell as fears of slowing global growth and the spreading impact of Europe’s credit woes encouraged investors to pull funds out of risk assets. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at [CA/MNC] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.44 percent in early trade.

* Oil prices fell towards $102 on Monday after Greece said it would miss its deficit target and as concerns rose about Franco-Belgian bank Dexia, which pulled down stocks and the euro, while the dollar strengthened. [O/R]

* Gold headed for its largest one-day rise in nearly a month on Monday, after Greece warned it will miss deficit targets set to avoid bankruptcy, which unleashed a sell-off in equities and commodities. [GOL/]

* Copper fell more than 5 percent to its lowest since July 2010 after Greece admitted it would miss its deficit target and improving but still disappointing economic data from China fuelled worries over metals demand growth. [MET/L]

CANADIAN STOCKS TO WATCH

* Birchcliff Energy Ltd. BIR.TO: The company said it was looking to sell itself after receiving unsolicited buyout offers, and that it was on track to meet its 2011 production outlook. [ID:nL3E7L30PS]

* Afexa Life Sciences Inc. FXA.TO: Acquisition-hungry Valeant Pharmaceuticals International VRX.TO said cold and flu medicine maker Afexa supports and recommends its increased all-cash offer for a takeover of the company. [ID:nL3E7KU2R7]

* Arctic Glacier Income Fund AG_u.TO: The debt-ridden fund reached a settlement with Talamod Asset Management LLC and Coliseum Capital Management, ending a potential battle over the fund’s board of trustees. [ID:nL3E7KU2RG]

* BioExx Specialty Proteins BXI.TO: The company plans to restart its protein extraction plant in Saskatchewan, it said. [ID:nN1E79204H]

* Rio Alto Mining Ltd. RIO.V: A labor disruption at Rio Alto’s La Arena gold mine in Peru has ended, an official at the company said on Saturday. [ID:nN1E79001U]

ANALYST RECOMMENDATIONS

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

* European Goldfields EGU.TO price target cut to C$16 from C$16.50 at RBC

* Iamgold IMG.TO added to global mining best ideas portfolio at RBC

* Osisko OSK.TO added to global mining best ideas portfolio at RBC

* AG Growth AFN.TO rating cut to sector perform from outperform at National Bank

* Hemisphere GPS HEM.TO rating cut to sector perform from outperform at National Bank

* Axia Netmedia AXX.TO price target cut to C$1 from C$1.50 at National Bank

* Major Drilling MDI.TO rating raised to sector outperformer from sector performer at CIBC

* Goldcorp G.TO rating raised to buy from hold at Deutsche Bank

* Silver Standard SSO.TO price target cut to C$22 from C$31 at Deutsche Bank

$1= $1.05 Canadian Reporting By Mohit Malukani; Editing by Jeffrey Hodgson

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