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CANADA STOCKS-TSX may open lower on resources, European banks
TORONTO, Sept 7 |
TORONTO, Sept 7 (Reuters) - Toronto's main stock index could open lower on Tuesday, halting eight sessions of gains, as commodity prices slipped on a stronger U.S. dollar and renewed concerns about Europe's banking sector.
FACTORS TO WATCH
* Canadian equity futures <0#SXF:> pointed to a lower open.
* U.S. stock index futures fell on Tuesday after reports on the European banking system rekindled concerns about the financial health of the region. [.N]
* European markets were down with banking and mining stocks among the losers. [.EU]
* Stocks in Asia were mixed with the Nikkei down, dented by profit-taking after four days of hefty gains and as the yen's strength showed little sign of abating.
COMMODITY PRICE MOVES
* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.61 percent in early trade.
* Oil fell by over $1 to around $73 a barrel on Tuesday as the dollar strengthened and Tropical Storm Hermine showed no signs of disruption to crude or refining output as it came ashore near the Mexico-Texas border. [O/R]
* Gold slipped in Europe on Tuesday as the dollar rose 1 percent against the euro amid reemerging concerns over the European banking sector and the pace of economic growth. [GOL/]
* Copper prices fell 2.5 percent on Tuesday, moving away from four-month highs as a strong dollar and risk aversion weighed on industrial metals. [MET/L]
CANADIAN STOCKS TO WATCH
* Alimentation Couche-Tard Inc (ATDb.TO): Casey's General Stores (CASY.O), the U.S. Midwest convenience-store chain fending off a takeover bid from Canada's Alimentation Couche-Tard, said on Tuesday it received a rival proposal. [ID:nN07218734]
* Onex Corp (OCX.TO): ResCare Inc RSCR.O said it agreed to be acquired by Canadian private equity firm Onex in a cash deal that values the U.S. provider of home care to the elderly and disabled at $390 million, after Onex sweetened its initial bid by 65 cents a share. [ID:nSGE6860G8]
* First Quantum Resources (FM.TO): The Canadian miner is considering legal action against rival miner ENRC over the disputed Kolwezi project in the Democratic Republic of Congo. [ID:nLDE6850Y5].
- First Quantum President Clive Newall told reporters in London on Monday his company might demand billions of dollars of compensation for lost market value after the DRC government took away the Kolwezi license and ENRC bought the rights to the copper project. [ID:nLDE67J1C1].
* Encana Corp (ECA.TO): Canada's largest natural gas producer said it expected drilling operations to resume Monday evening at its Deep Panuke prospect offshore Nova Scotia after operations were suspended ahead of Hurricane Earl. [ID:nN06107722].
* Imperial Oil Ltd (IMO.TO): Canada's No. 2 oil producer and refiner said on Monday it had begun the sequenced restart of its 82,000 barrel per day refinery in Dartmouth, Nova Scotia after the plant was shut ahead of Hurricane Earl. [ID:nN06191082].
* Goldcorp Inc (G.TO): The Canadian gold miner's C$3.6 billion ($3.5 billion) takeover offer for Andean Resources AND.TO remains the top offer for the emerging Argentina-focused gold producer, though the sector was becoming more confident in pursuing acquisitions, Andean Chief Executive Wayne Hubert told Reuters. [ID:nSGE68602E]
* TransCanada Corp (TRP.TO): Canada's biggest pipeline and power company has shut down its new Keystone oil pipeline to the U.S. Midwest from Alberta for unscheduled maintenance, adding to an already-squeezed system for exporting Canadian crude. [ID:nN03145497]
ANALYSTS RECOMMENDATION Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]
* Research In Motion RIM.TORIMM.O: Goldman Sachs cuts Research In Motion Ltd price target to $45 from $50.[ID:nWNAB3587]
* CIBC (CM.TO) rating raised to outperform from sector perform at RBC
* BMO raises Husky Energy (HSE.TO) to market perform
* Barclays starts Canadian Oil Sands Trust COS_u.TO, MEG Energy (MEG.TO) ($1=$1.04 Canadian) (Reporting by Bangalore newsroom and Jennifer Kwan, editing by Jeffrey Hodgson)
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