August 3, 2010 / 1:06 PM / 9 years ago

CANADA STOCKS-TSX may open higher as oil, gold rise

Aug 3 (Reuters) - Toronto’s resource-heavy stock index could open higher on Tuesday as oil and gold prices rose.

Canadian equity futures pointed to a higher open. <0#SXF:>, even as the Reuters-Jefferies CRB index .CRB, a global commodities benchmark, was down 0.06 percent in early trade.

Research In Motion RIM.TO RIMM.O is likely to be in the spotlight as it is expected to unveil its answer to Apple Inc’s (AAPL.O) iPhone.

Kinross Gold (K.TO) is also seen to keep the mining stocks in focus after the gold miner said it will buy 91 percent of Red Back Mining RBI.TO for around $7 billion.

Wall Street is set to for a lower start, but bulls could be tempted into the market as the S&P pierced two key technical levels. [.N]

European shares edged lower as some banks gave back a little of the sharp gains from the previous session, although losses were capped by companies such as BMW rising after strong results.

Asian markets were up, while China’s key stock index fell, weighed down by concerns over more capital raising.

Here is some news that could affect stock prices:


Oil prices pushed up to fresh three-month highs around $82 per barrel on Tuesday, spurred by a fall in the dollar and ahead of U.S. data expected to show a draw in oil inventories. [O/R]


Copper prices fell as investors sold into a rally that took prices to three-month highs, taking note also that the trend of falling inventories is ebbing. [MET/L]


Gold rose in Europe on Tuesday as physical consumers like jewelers took advantage of lower prices to buy into the precious metal, and as China announced moves to allow greater freedom in its gold trade. [GOL/]

Canadian stocks to watch include:


RIM is expected to raise the curtain on its long-awaited answer to the iPhone at an unusual company “event” in midtown Manhattan. [ID:nN30196802]

—The BlackBerry maker is willing to block porn sites and let government spies snoop on users, newspapers reported on Tuesday, following a threatened ban on its key services in the Gulf. [ID:nLDE6720WQ]

—RIM pledged to satisfy the security needs both of customers and governments, a day after the United Arab Emirates threatened to cut off some BlackBerry services because authorities could not access encrypted messaging data. [ID:nN0285181]

—The United States said on Monday it was disappointed that the UAE planned to cut off key BlackBerry services, noting that the Gulf nation was setting a dangerous precedent in limiting freedom of information. [ID:nN02250361]


Gold miner Kinross Gold said on Monday it will buy the 91 percent of Red Back Mining Inc that it does not already own for around $7 billion to create one of the world’s largest gold miners. [ID:nN02108994]


Enbridge said it had no timeline for restarting the oil pipeline ruptured in Michigan last week and that restarting the pipeline was not a priority, said Pat Daniel, the company’s president and chief executive officer on Monday. [ID:nN02107953]


Alimentation Couche-Tard Inc extended to Aug. 30 its tender offer to buy U.S. general store chain Casey’s General Stores Inc (CASY.O). [ID:nSGE6710M1]


The Canadian oil and gas explorer and producer said on Tuesday potential net oil pay and total oil column height increased at its Moqueta-2 well in Colombia. [ID:nSGE6720HR]


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.

* Canadian Utilities Ltd (CU.TO) rating cut to sector perform from outperform at RBC

* Equitable Group Inc ETC.TO price target cut to $24 from $27; rating sector perform at RBC

* George Weston Ltd (WN.TO) price target raised to $87 from $86; rating sector perform at RBC

* Home Capital Group Inc (HCG.TO) started with outperform rating; price target of $54 at Macquarie.

Price target cut to $53 from $55; rating outperform at RBC

* IGM Financial Inc (IGM.TO) price target cut to $48 from $49; rating outperform at RBC

* Stratic Energy Corp SE.V price target cut to $0.17 from $0.20; rating sector perform at RBC

* Transalta Corp (TA.TO) price target cut to $21 from $22; rating neutral at UBS

($1=$1.02 Canadian)

Reporting by Bangalore newsroom, editing by Bhaswati Mukhopadhyay and Jeffrey Hodgson

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