November 22, 2010 / 1:38 PM / in 7 years

CANADA STOCKS-TSX set to open lower as Ireland optimism fades

Nov 22 (Reuters) - Toronto’s main stock index looked set to open lower on Monday, with investors cautious about the risk of further debt problems in the euro zone periphery, even after the EU and IMF agreed to help bail out Ireland.

FACTORS TO WATCH

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

* U.S. stock index futures slipped as enthusiasm waned over a resolution to help bail out Ireland and worries over contagion remained. [.N]

* European shares turned negative on Monday, led lower by banking stocks, as Ireland’s bailout failed to quash fears of contagion to other euro zone economies. [.EU]

* Most markets in Asia were also down, while Nikkei bucked the trend to gain almost 1 percent to a fresh five-month closing high, as receding worries about the yen’s strength encouraged a shift back to Japanese shares led by foreign investors.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.26 percent in early trade.

* Oil rose towards $83 on Monday, along with a relief rally in broader markets, after global financial authorities agreed to save debt-swamped Ireland and protect Europe’s wider financial stability. [O/R]

* Gold pared gains in line with a decline in the euro, which earlier had benefited from Ireland’s rescue deal, as euphoria over the second euro zone bailout proved short-lived. [GOL/]

* Copper softened as investors worried about the demand outlook in top metals consumer China, but losses were limited after global financial authorities agreed to save debt-stricken Ireland [MET/L]

CANADIAN STOCKS TO WATCH

* Enbridge Inc. (ENB.TO). The pipeline operator said on Sunday its 290,000 bpd Line 6B carrying Canadian crude oil in to the United States will return to service in “a matter of days.” [ID:nN21203814]

* Wi-Lan Inc. WIN.TO: The technology licensing firm said on Monday it had initiated patent infringement litigation against Comcast Corp, Time Warner Cable Inc and Charter Communications in a U.S. federal court. [ID:nSGE6AL0MX]

* Helix BioPharma Corp. (HBP.TO): The biopharmaceutical company said on Monday its experimental cancer treatment was placed on clinical hold by U.S. regulators, seeking additional information about the product’s durability.[ID:nSGE6AI0KX]

ANALYST RECOMMENDATIONS

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

* Bonavista Energy Trust BNP_u.TO target price raised to C$28 from C$27.50; keeps outperform rating at Raymond James

* Canfor Corp CFP.TO price target raised to C$12.50 from C$11.25; keeps outperform rating at Raymond James

* Osisko Mining Corp (OSK.TO) target price raised to C$16 from C$14.50; keeps market perform rating at Raymond James

* Petroamerica Oil Corp PTA.V resumed coverage with outperform rating and C$1.10 target price at Raymond James

* Platmin Ltd PPN.TO rating cut to sector perform from outperform at RBC

* Suroco Energy Inc SRN.V target price raised to C$0.85 from C$0.75; keeps outperform rating at Raymond James

* West Fraser Timber Co Ltd (WFT.TO) price target raised to C$55 from C$50; keeps outperform rating at Raymond James

$1= $1.02 Canadian Reporting by Kishan Nair and Bangalore Newsroom; Editing by Jeffrey Hodgson

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