September 13, 2011 / 12:42 PM / 6 years ago

CANADA STOCKS-TSX may open lower on European fiscal fears

Sept 13 (Reuters) - Toronto’s main stock index was set to open lower on Tuesday, tracking global markets, after reports cast doubt on a possible deal for China to buy Italian debt, heightening concerns about the fiscal crisis in Europe.

FACTORS TO WATCH

* Canadian and U.S. equity futures pointed to a lower open. <0#SXF:> [.N]

* European shares briefly turned positive helped by bank shares and news that French president Nicolas Sarkozy and German Chancellor Angela Merkel were set to make an announcement on Greece later in the day. But the French President’s office then denied that report. [.EU]

* Japan’s Nikkei rose almost 1 percent as short-covering emerged after a tumble the day before, but traders said gains may be short-lived. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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 0.61 percent in early trade.

* Brent pared early gains to trade at $112.50 a barrel after the International Energy Agency (IEA) cut its estimate for demand growth and raised its supply forecast, countering support provided by rebounds in the euro and in stock markets. [O/R]

* Gold rose back into positive territory in volatile trade, climbing briefly above $1,825 an ounce, as the dollar slipped to a session low against the euro on expectations that France and Germany would offer support to heavily-indebted Greece. [GOL/]

* Copper traded steady, trimming earlier gains as markets remained fearful about Europe’s deteriorating sovereign debt crisis. [MET/L]

CANADIAN STOCKS TO WATCH

* Encana Corp. ECA.TO: The natural gas producer is in talks with potential partners that could lead to shale gas exploration in Poland, but has not signed any deals, a spokesman with the company said on Monday. [ID:nS1E78B1TX]

* HudBay Minerals (HBM.TO): The base metal and precious metal miner plans to invest at least $1 billion to develop its Constancia copper project in Peru, the company’s CEO told Reuters on Monday. [ID:nL4E7GH019]

* Hathor Exploration HAT.TO: The uranium company said a preliminary economic assessment of its flagship Roughrider uranium deposit showed it would potentially be one of the lowest cost uranium producers in the world. [ID:nL3E7KD2KO]

* Petro-Reef Resources Inc. PER.V: The oil and gas producer expects daily production rates to increase in early 2012 as a new well on its Alberta asset comes online and regulators lift some restrictions on output. [ID:nL3E7KC436]

* Exeter Resource Corp. XRC.TO: The exploration company said the Chilean government granted it a 10,726 hectare water exploration concession for its Caspiche gold-copper project. [ID:nL3E7KD2CQ]

* Forbes & Manhattan Coal Corp. FMC.TO: The coal miner said second-quarter export sales more than doubled sequentially, helped by higher coal production at its Aviemore anthracite coal mine in South Africa. [ID:nL3E7KD2I4]

ANALYST RECOMMENDATIONS

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

* Acadian Mining Corp ADA.TO rating raised to buy from hold at Salman Partners

* Ithaca Energy Inc IAE.V coverage started with sector outperformer; price target of C$3.25 at CIBC

* Parex Resources Inc PXT.V price target raised to C$10.75 from C$10 at CIBC

* Richelieu Hardware Ltd (RCH.TO) coverage started with outperform rating; price target C$32 at National Bank

* Secure Energy Services Inc (SES.TO) price target raised to C$10.75 from C$10.50 at CIBC

$1= $0.99 Canadian Reporting by Shrutee Sarkar; Editing by Jeffrey Hodgson

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