CANADA STOCKS-TSX may open higher as commodities rise
July 3 |
July 3 (Reuters) - Canada's resource-heavy benchmark index looked set to open higher on Tuesday after a long holiday weekend, buoyed by higher commodity prices and rising hopes for an European interest rate cut.
* Euro zone factory prices fell more than expected in May as the cost of energy dropped sharply and made an even stronger case for an interest rate cut as early as this week to help the region's stagnant economy.
* Barclays CEO Bob Diamond quit under a barrage of fire from politicians, the highest-profile casualty of an interest rate-rigging scandal that spans more than a dozen major banks across the world.
* Microsoft admitted its largest acquisition in the Internet sector was effectively worthless and wiped out any profit for the last quarter, as it announced a $6.2 billion charge to write down the value of an online advertising agency it bought five years ago.
* Aquila Resources Inc said joint venture partner HudBay Minerals Inc has decided to suspend development activities at the Back Forty zinc project in Michigan due to its capital commitments to other development projects.
* Canadian oil and gas company Cequence Energy Ltd said Open Range Energy Corp has terminated an agreement to sell itself to Cequence as it received a better offer.
* Canada stock futures traded up 0.29 percent
* U.S. stock futures , , were up around 0.1 percent
* European shares, were up
COMMODITY PRICE MOVES
* Thomson Reuters-Jeffries CRB Index : 287.48; rose 1.15 percent
* Gold Futures : $1610.8; rose 0.85 percent
* US Crude : $85.77; rose 2.41 percent
* Brent Crude : $99.65; rose 2.37 percent
* LME 3-month Copper : $7773; rose 1.94 percent
CANADIAN STOCKS TO WATCH
* Bombardier Inc. : The commercial planemaker said on Saturday its aerospace arm had received firm orders worth about $507 million for eight global business aircraft. * Encana Corp. : The U.S. Justice Department is probing Chesapeake Energy Corp and Encana for possible collusion after a Reuters report showed that top executives of the two rivals plotted in 2010 to avoid bidding against each other in Michigan land deals, a source close to the probe said.
* Enbridge Inc : The U.S. pipeline regulator on Monday slapped a $3.7 million fine, the largest penalty ever imposed, on the pipeline operator for a July 2010 crude oil spill which contaminated stretches of the Kalamzoo River in Michigan. * San Gold Corp. : The company on Sunday restarted milling operations at its Rice Lake Mining complex in Manitoba after a near month-long suspension due to a mechanical failure.
Following is a summary of research actions on Canadian companies reported by Reuters.
* Alaris Royalty Corp : Canaccord Genuity raises price target to C$23.75 from C$21.25 to reflect Labstat deal, dividend hike; rating buy
* Progress Energy : CIBC raises target price to C$20.45 from C$11.50; says Petronas offer represents an excellent premium; rating sector performer
* Research In Motion : Barclays cuts U.S listed shares to underweight from equal weight on weak BlackBerry 7 demand, increasing competition, delay in BlackBerry 10 launch
* Thompson Creek Metals : CIBC cuts target to C$9.40 from C$10, says operating headwinds at Thompson Creek Mine and Endako will hamper Q2 production
ON THE CALENDAR
* Major Canadian economic data includes RBC Manufacturing PMI
* Major U.S. events and data includes factory orders and auto sales
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