September 21, 2011 / 12:37 PM / 6 years ago

CANADA STOCKS-TSX set to open little changed; eye on Fed

Sept 21 (Reuters) - Toronto’s main stock index looked set to open little changed on Wednesday, with investors focused on the outcome of the U.S. Federal Reserve’s closely-watched policy meeting.

The Federal Open Market Committee wraps up a two-day meeting with many expecting the Fed to buy longer-dated bonds in a bid to keep already-low, long-term interest rates low, if not lower. [FED/AHEAD]

FACTORS TO WATCH

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

* The Canadian dollar briefly pared losses against its U.S. counterpart after Canadian consumer price data came in stronger than expected. [CAD/]

* U.S. stock index futures were little changed as investors waited to see if the U.S. Federal Reserve launches a fresh effort to boost the sluggish economy. [.N]

* European shares fell as investors took money off the table after the previous session’s jump, although tech shares outperformed on Oracle’s upbeat outlook. [.EU]

* Asian markets were largely up, but Hong Kong’s benchmark index ended at a two-year low, with Chinese property stocks tumbling under short selling pressure from some hedge funds. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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, fell 0.42 percent in early trade.

* Brent crude futures pushed slightly higher but moves were muted as investors awaited a U.S. Federal Reserve policy meeting in which the bank is expected to announce further steps to stimulate the economy. [O/R]

* Gold held steady above $1,800 an ounce ahead of the outcome of a Federal Reserve policy meeting at which the U.S. central bank is expected to unveil its next steps to revive the world’s largest economy. [GOL/]

* Copper fell, on diminishing prospects for demand given the threat the euro zone sovereign debt crisis may derail the global economy, while attention turned to a U.S. monetary meeting later. [MET/L]

CANADIAN STOCKS TO WATCH

* Walter Energy Inc. WLT.TO: The company said it sees lower-than-expected metallurgical coal sales in the second half of the year partly due to slow recovery from the record rainfall in Northeast British Columbia and forecast third-quarter profit below estimates. [ID:nL3E7KL1SY]

* Cascades Inc. (CAS.TO): The packaging and paper products maker said its Norampac division will sell a containerboard mill in Burnaby, British Colombia to stave off rising labor and fibre costs and below-par profits from the asset. [ID:nL3E7KK3Q5]

* Pacific Rubiales Energy Corp. PRE.TO: Colombian police fought protesters on Tuesday at the company’s oil field shutting around 225,000 barrels of oil per day and forcing the company to declare force majeure, the firm and a union said. [ID:nN1E7871WP]

* Yukon-Nevada Gold Corp. YNG.TO: The gold miner said it expects to start mining at Burns Basin in Nevada in the fourth quarter of 2012, following the boards approval of construction work at the mine. [ID:nL3E7KL1W5]

* Realm Energy International Corp. RLM.V: The oil shale developer said it received two permits for exploring shale gas over 212,099 acres at the Cantabrian Basin in northern Spain. [ID:nL3E7KL1W4]

ANALYST RECOMMENDATIONS

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

* Feronia Inc (FRN.V) price target cut to C$0.70 from C$0.85 at National Bank

* Longview Oil Corp LNV.TO coverage started with sector performer; price target C$12.75 at CIBC

* Timmins Gold Corp TMM.TO price target raised to C$4.10 from C$3.90 at National Bank

$1= $0.99 Canadian Reporting by Anil Kumar; Editing by Jeffrey Hodgson

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