October 6, 2011 / 12:37 PM / in 6 years

CANADA STOCKS-TSX may extend gains on commodities, BoE action

Oct 6 (Reuters) - Toronto’s main stock index was set to extend gains on Thursday from the previous session on rising commodity prices and after Bank of England took monetary policy action to try to boost its economy.

World stocks were firmer after the Bank of England pledged to buy a a bigger-than-expected 75 billion pounds in assets to bolster the UK economy. [MKTS/GLOB]

FACTORS TO WATCH

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

* U.S. stock index futures rose, following two days of market gains as optimism grew that European policymakers were making progress in efforts to shore up stressed banks. [.N]

* European shares rose, with a blue-chip index flirting with levels not seen in five weeks, as banking stocks climbed on rising hopes of coordinated action to recapitalise the lenders and shelter them from the region’s debt crisis. [.EU]

* Most Asian bourses were up. Crude rose on surprise fall in U.S. inventories and concerns that Libya’s largest oilfield could be damaged. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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, rose 0.51 percent in early trade.

* Oil prices rose around $1 a barrel on expectations Europe would take steps to support its banks and as economic and industry data suggested global growth may be slightly stronger than anticipated. [O/R]

* Gold firmed in Europe on Thursday as a strong recovery in equity markets cut selling of the precious metal to cover losses elsewhere, and as physical buyers took advantage of lower prices to stock up. [GOL/]

* Tin rose to a two-week high on Thursday, tracking gains across the base metals complex on hopes European policymakers would step-in to support its financial sector. [MET/L]

CANADIAN STOCKS TO WATCH

* Cameco Corp. (CCO.TO): The uranium producer said it signed a new milling arrangement with its joint venture partners which will help it cut operating cost at its Cigar Lake project. [ID:nL3E7L604S]

* Provident Energy Ltd. PVE.TO: The operator of natural gas processing facilities raised its forecast for 2011 adjusted earnings before interest, taxes, depreciation and amortization, on higher production at its Redwater facilities in Alberta. [ID:nL3E7L61LW]

* Alamos Gold Inc. (AGI.TO): The miner posted a 9 percent rise in production at its flagship Mulatos mine in Mexico, and said it was on track to meet its annual output view. [ID:nL3E7L61M9]

* Air Canada ACa.TOACb.TO: Air Canada and tiny rival Porter Airlines filled more seats on their flights in September. [ID:nN1E79409I]

* DragonWave Inc. DWI.TO: The telecom equipment maker posted a fourth straight quarterly loss but said revenue rose from the previous quarter. [ID:nN1E7941RR]

ANALYST RECOMMENDATIONS

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

* Air Canada ACa.TO price target cut to C$2 from C$2.50; rating sector perform at National Bank

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

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