May 21, 2010 / 12:52 PM / 8 years ago

CANADA STOCKS-TSX may open lower on Europe, growth fears

May 21 (Reuters) - Toronto’s main stock index could open lower on Friday on rising concerns that Europe’s debt crisis could hurt global economic growth and the price of commodities produced by many Canadian companies.

U.S. stock index futures fell as the recent sell-off stemming from the euro zone debt crisis and U.S. financial regulation has ruptured investor confidence, causing a flight from risky assets. [.N]

Stocks slid further around the world on fears that Europe’s debt crisis and tougher financial regulation will hurt a global economic recovery. [MKTS/GLOB]

Sliding global markets overshadowed news that Canadian inflation data came in slightly higher than expected, keeping alive the possibility of a June interest rate hike by the Bank of Canada. [ID:nN21149251]

Below is some news that could affect Toronto stock prices:

OIL FALLS

Oil prices fell towards $70 a barrel on Friday, haunted by concerns that Europe’s debt crisis could hurt global economic growth and slow energy demand. [O/R]

COPPER UP

Copper rose on Friday as gains in the battered euro supported sentiment, but the rally in metals looked weak as the debt crisis in Europe and weaker copper imports from the metal’s top buyer China hit the demand outlook. [MET/L]

GOLD STEADY

Gold steadied in Europe on Friday, arresting a slide that took it to two-week lows earlier in the session, as lower prices tempted some buyers back to the market amid persistent fears over the euro zone debt crisis. [GOL/]

CANADIAN DOLLAR FALLS

Canada’s dollar hit its weakest level in 14-weeks against the U.S. dollar on Friday as European worries more than offset slightly higher than expected Canadian inflation data that kept alive the possibility of a June 1 interest rate hike. [CAD/]

CP RAILWAY UPS DIVIDEND

Canadian Pacific Railway Ltd CP.TO on Thursday said it raised its quarterly dividend by 9 percent and increased its 2010 capital spending budget by C$70 million. [ID:nSGE64J0MD]

AGRIUM TO FOCUS ON RETAIL, POTASH EXPANSIONS

Agrium Inc AGU.TO plans to focus on enlarging its existing potash operations and expanding its retail business, Chief Executive Mike Wilson said on Thursday. [ID:nN20112807]

RIOCAN TO BUY RETAIL PROPERTIES IN TEXAS

RioCan Real Estate Investment Trust REI_u.TO on Thursday said it agreed with U.S.-based Inland Western Retail Real Estate Trust Inc to purchase eight retail properties in Texas for about $53 million. [ID:nSGE64J0M4]

CANADA TOUGHENS CHEVRON DRILL RULES AFTER BP SPILL

A Canadian regulator tightened offshore drilling rules on Thursday in response to the massive oil spill in the Gulf of Mexico, forcing new restrictions on Chevron Corp’s CVX.N operations off Newfoundland. [ID:nN20163153]

TECK TO ADVANCE RED DOG MINE

Teck Resources TCKb.TO said on Thursday it will proceed with an expansion of its Red Dog zinc mine in Alaska, avoiding a potential closure that would have stripped out more than 5 percent of global zinc production for over a year. [ID:nN20123124]

RESEARCH ROUNDUP

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

Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.

* BCE Inc BCE.TO price target raised to $30 from $27 at Scotia

* Boardwalk REIT BEI_u.TO price target raised to $41.25 from $39.50 at Scotia

* Biox Corp BX.TO coverage started with buy rating; target price of $2.50 at Clarus

* Consolidated Thompson Iron Mines CLM.TO target price raised to $13.90 from $10.50; buy rating at Desjardins

* Nexen NXY.TO rating raised to outperform at Macquarie

* San Gold SGR.V coverage started with sector performer rating; price target of $6 at CIBC

$1=1.07 Canadian Reporting by Bangalore newsroom, editing by Jeffrey Hodgson

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