CANADA STOCKS-Strong bank results could boost market

Tue Aug 28, 2012 8:15am EDT

Aug 28 (Reuters) - Canada's main stock index looked set to open higher on Tuesday after two major banks reported stronger-than-expected quarterly results, while the market remained focused on a crucial meeting of central bankers later in the week.

TOP STORIES

* Bank of Montreal reported a 37 percent jump in quarterly profit, topping expectations, and the company raised its quarterly dividend.

* Bank of Nova Scotia profit rose 57 percent in the fiscal third quarter, helped by a C$614 million gain from the sale of its corporate headquarters in Toronto, it said.

* European Central Bank President Mario Draghi will not attend the annual Jackson Hole meeting of central bankers at the end of this week due to a heavy workload, the ECB said on Tuesday as its policymakers gear up for a critical meeting on Sept. 6.

* The Spanish economy shrank 0.4 percent in the second quarter on a quarterly basis as forecast in a flash estimate and after shrinking by 0.3 percent in the first quarter, final official data showed on Tuesday.

* Japan's government cut its assessment for the export-reliant economy on Tuesday for the first time since October 2011, as slowing global growth weighed on exports and factory output, and threatened recovery prospects.

MARKET SNAPSHOT

* Canada stock futures traded up 0.2 percent

* U.S. stock futures , , were mixed in the range of -0.02 to 0.04 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 306.13; rose 0.08 percent

* Gold futures : $1,661.5; fell 0.65 percent

* US crude : $96.28; rose 0.85 percent

* Brent crude : $112.6; rose 0.3 percent

* LME 3-month copper : $7,610; fell 0.39 percent

CANADIAN STOCKS TO WATCH

* Coeur d'Alene Mines Corp. : The miner said it resumed full production at its silver-gold mine in northern Mexico, where it suspended work on Sunday following a worker's death.

* Viterra Inc. : The closing of Glencore International Plc's C$6.1-billion takeover of the grain handler will stretch into September, Viterra said on Monday.

* Lundin Mining Corp. : The base metal miner said on Monday it has restarted production from Aguablanca, nearly two years after heavy rains caused a landslide at the nickel-copper mine in Spain.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Cameco Corp. : Canaccord Genuity cuts target price to C$29 from C$31 on valuation

* Davis + Henderson Corp : CIBC ups target to C$23 from C$21, expects the company will continue to use its cash flow to make acquisitions that will strengthen its fintech solutions

* Orezone Gold Corp : Canaccord Genuity raises target price to C$4.25 from C$4, says the gold resource for the Bombore project has increased 49 percent along with the grade which is 16 percent richer

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes S&P Case/Shiller Home Price Index and consumer confidence