July 22 (Reuters) - Toronto’s main stock index could open higher on Thursday, rebounding from previous session’s sharp losses, as commodity prices gained.
Canadian equity futures pointed to a higher open. <0#SXF:> The Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was up 0.37 percent in early trade.
Wall Street is also poised for a higher open ahead of a flurry of company results. U.S. stocks sold off on Wednesday after Federal Reserve chairman Ben Bernanke said the U.S. economy was facing unusual uncertainty. [.N]
European shares rose, reversing earlier falls as banks gained ahead of the sector’s stress tests results on Friday.
Asian shares were mixed with Shanghai Composite Index SSEC gaining 1.07 percent as rising steel prices boosted metal shares while property companies rose on reports that a property tax would not be levied before 2012.
Japan’s Nikkei inched down for a fifth straight day of losses and its lowest close in three weeks, hurt by a stronger yen after Bernanke’s remarks.
Here is some news that could affect stock prices:
Oil reversed early losses on Thursday to head back toward $77 a barrel as signs of a stronger recovery in Germany soothed investor concerns, but rising U.S. inventories kept prices in check. [O/R]
Shanghai copper rose 0.6 percent Thursday, while London pared the previous session’s 3 percent rally after comments by Fed chairman Ben Bernanke on the outlook for the U.S. economy gnawed at sentiment. [MET/L]
Gold prices eased below $1,190 an ounce in Europe on Thursday as investors awaited the outcome of European bank stress tests at the end of the week, with a majority of institutions expected to pass the tests. [GOL/]
Canadian stocks to watch include:
LOBLAW COS (L.TO)
Loblaw Cos, Canada’s biggest grocery store operator, said on Thursday quarterly earnings dropped 8.6 percent, as infrastructure and technology investments held back profit. [ID:nN21179582]
PRECISION DRILLING CORP (PD.TO)
Precision Drilling Corp, Canada’s biggest oil and gas well drilling company, reported a quarterly loss, hurt by charges and foreign exchange losses, and said activity levels for the rest of 2010 will exceed those in 2009. [ID:nSGE66L0LV]
North American transportation company Vitran Corp Inc on Thursday posted a four-fold increase in quarterly profit, helped by better shipments and tonnage in its less-than-truckload segment. [ID:nSGE66L0KE]
ALIMENTATION COUCHE-TARD INC (ATDb.TO)
Alimentation Couche-Tard Inc said on Thursday it raised its takeover bid for rival Casey’s General Stores (CASY.O) to $1.88 billion, in a renewed attempt to clinch a deal with the U.S. convenience store chain. [ID:nN22217702]
Norbord Inc’s quarterly profit breezed past market estimates, helped by the run-up in North American oriented strand board prices, and the Canadian wood-based panels producer said it remained confident of the future. [ID:nSGE66I0DW]
Gold miner Andean Resources Ltd said on Wednesday it plans to raise about C$234.5 million by selling 70 million shares at C$3.35 apiece to a syndicate of underwriters to advance its Cerro Negro project in Argentina. [ID:nSGE66K0L3]
Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.
* Parex Resources PXT.V rating raised to strong buy from outperform; price target raised to $6 from $5.50 at Raymond James
Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Frank McGurty