May 5 (Reuters) - Toronto’s main stock index could open lower on Wednesday as commodity prices tumbled while Germany and the IMF warned of financial contagion unless a euro zone debt crisis is stopped in Greece.
Wall Street is also set for a lower start ahead of ADP employment and ISM non-manufacturing reports. [.N]
Asian markets mostly dropped, although China bucked the trend, managing a technical bounce from seven-month lows hit earlier in the session, while Japan remained closed.
Here is some news that could affect Canadian stock prices:
Oil fell 1.5 percent towards $82 a barrel, extending the steepest one-day loss in three months as the unfolding crisis in Greece rattled markets and mounting U.S. crude oil inventories pointed to soft demand. [O/R]
COPPER AT 3-MONTH LOW
Copper prices slid to their lowest in nearly three months as fears of contagion from Greece and worries about Chinese demand prompted investors to retreat from industrial metals. [MET/L]
Gold eased in Europe, caught up in selling that hit assets like the euro and other commodities, but fears of financial contagion from the Greek debt crisis fuelled safe-haven buying, which underpinned prices. [GOL/]
C$ AT 6-MONTH LOW VS US$
Canada’s dollar dropped against the U.S. currency on Tuesday to touch its lowest in nearly six weeks as investors worried that Greece’s debt crisis would spread to other euro zone countries. [CAD/]
Enbridge Inc (ENB.TO), Canada’s No. 2 pipeline company, reported a lower first-quarter profit on Wednesday compared with the previous year when it benefited from the sale of a Colombian pipeline system. [ID:nN05261883]
Agrium Inc AGU.TO said on Wednesday it posted a first-quarter loss, as its results were hurt by losses on gas hedges and other one-time items. [ID:nN04118549]
Kinross Gold’s (K.TO) net profit jumped 45 percent in the first quarter on stronger gold prices, the miner said on Tuesday, as it announced it was taking a 9.4 percent stake in Africa-focused Red Back Mining RBI.TO. [ID:nN0384150]
Talisman Energy Inc TLM.TO, Canada’s independent oil exploration company, posted a lower first-quarter profit but still beat market expectations, helped by higher oil prices. [ID:nSGE6440DY]
HudBay Minerals (HBM.TO) swung to a first-quarter profit from a year-before loss, it said on Tuesday, helped by rebounding prices for copper and zinc, but held back by the stronger Canadian dollar. [ID:nN04162235]
Torstar Corp (TSb.TO), which is bidding for the newspaper and online businesses of Canwest Global Communications CGS.V, said on Wednesday it posted a first-quarter profit, helped by lower costs and improved results from its newspaper and digital segment. [ID:nN04113739]
Following is a summary of research actions on Canadian companies reported by Reuters on Friday. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.
* Black Diamond (BDI.TO) rating cut to market perform from outperform at Raymond James
* Canelson Drilling CDI.V started with overweight rating; price target of $4 at Thomas Weisel
* Kinross Gold (K.TO) price target cut to $21 from $24; rating market-weight at Thomas Weisel
* Ram Power RPG.TO price target cut to $4.35 from $4.70; rating outperform at Raymond James ($1=$1.01 Canadian) (Reporting by Bangalore newsroom, editing by Savio D’Souza and Frank McGurty)