November 23, 2010 / 1:45 PM / 7 years ago

CANADA STOCKS-TSX set to open lower on Korea, Ireland woes

Nov 23 (Reuters) - Toronto’s main stock index looked set to open lower on Tuesday as commodity prices fell and investor anxiety rose, hurt by an exchange of artillery fire on the Korean peninsula and Ireland’s ongoing debt woes.

FACTORS TO WATCH

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

* Canada’s annual inflation rate unexpectedly jumped to a two-year high of 2.4 percent in October, but analysts questioned whether the data would prompt the Bank of Canada to raise interest rates sooner than expected. [ID:nN23119481]

* U.S. stock index futures were sharply lower as rising tensions on the Korean peninsula added to concerns about global economic conditions. [.N]

* Thailand’s PTT Exploration and Production PTTE.BK is to buy 40 percent of Statoil’s (STL.OL) (STO.N) Canadian oil sands project for $2.3 billion, joining an Asian investor rush into this energy source. [ID:nSGE6AM02H]

* European shares extended losses and hit a new low for the day, on worries about political and financial troubles in Ireland, possible contagion to other peripheral euro zone countries and hostilities in the Korean peninsula. [.EU]

* Asian stock markets that were still trading when the Korean news broke extended the day’s losses, pushing MSCI’s index of Asia Pacific shares outside Japan down 2.2 percent.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 1.08 percent in early trade.

* U.S. crude oil futures fell more than $1 as the dollar rose after an exchange of artillery fire on the Korean peninsula and on worries Ireland’s debt crisis might lead to problems elsewhere. [O/R]

* Gold eased as weakness in the euro stemming from the European debt crisis offset any potential price gains from a major exchange of artillery fire on the Korean peninsula. [GOL/]

* Commodity markets buckled as worries over an exchange of artillery fire between North and South Korea and concern that Ireland’s debt problems could spread in the euro zone sent the dollar higher. [MET/L]

CANADIAN STOCKS TO WATCH

* Research in Motion RIM.TO: The BlackBerry maker is confident there will be no ban in India on its services, a senior RIM executive said on Tuesday. [ID:nBMA008937]

* CI Financial CIX.TO: The company is still seen as a likely takeover target for Bank of Nova Scotia (BNS.TO), but the deal may not happen any time soon after Scotia’s C$2.3 billion offer for Dundee Wealth DW.TO. [ID:nN22286552]

* China Gold International Resources Ltd CGG.TO: The company had priced its Hong Kong initial public offering at HK$44.68 per share to raise $309 million, IFR reported on Tuesday. [ID:nHKV002581]

* Canaccord Financial Inc. (CF.TO): The company said on Monday it is expanding its operations into Asia with the acquisition of The Balloch Group, a Chinese boutique investment bank. [ID:nN2240117]

* Baffinland Iron Mines BIM.TO: Nunavut Iron, a company incorporated in Canada to pursue the takeover of Baffinland, said on Monday it extended its offer as it mulls a competing bid from the world’s largest steel company. [ID:nN22290868]

ANALYST RECOMMENDATIONS

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

* Flint Energy Services FES.TO price target raised to C$18.50 from C$18; keeps sector perform rating at National Bank

* MAG Silver Corp MAG.TO rating raised to outperform from market perform at Raymond James

* Minco Silver Corp MSV.TO price target raised to C$6.40 from C$4.40; 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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